Giannoulias to auction unclaimed property on eBay

Bidders can preview items for sale online, at State Fair

August 13, 2007

Illinois State Treasurer Alexi Giannoulias will conduct the state’s first-ever eBay auction of unclaimed property beginning Aug. 20.

In previous years, the state held a live auction to sell off the contents of forgotten or abandoned safe deposit boxes during the Illinois State Fair. Switching to an online auction enables the state to reach a significantly wider audience, Giannoulias said.

“A weeklong online auction will dramatically increase participation and the number of bids, which will result in higher selling prices and ultimately more revenue for the state,” said Giannoulias, noting that several states have experienced success by partnering with eBay and its more than 241 million registered users to sell unclaimed assets.

“Instead of a traditional live auction that only lasts a few hours on a single day and attracts a limited number of people, Illinois can hold weekly online auctions throughout the year that attract a worldwide audience,” he added.

For the Aug. 20 auction, the Treasurer’s Office has divided the property into 50 lots with the appraised value of each lot, ranging between $1 and $2,100. The total amount of the items is valued at approximately $20,000.

The items include an emerald cut white gold diamond ring, watches, baseball cards, a Canadian maple leaf coin set and various other coins.

The property up for auction comes from safe deposit boxes turned over to the Treasurer’s Office by banks and other financial institutions throughout the state. Under state law, if safe deposit boxes have been abandoned or inactive for more than five years and the financial institutions have been unable to locate the owners, the property is transferred to the state and eventually sold at auction.

Each year, thousands of items are turned over to the state and are held in a vault in the Capitol for safekeeping. The Treasurer’s Office holds on to the property for at least another four years in an effort to track down the property’s rightful owners or heirs.

The Treasurer’s Office will conduct its first eBay auction from Aug. 20 (the day after the Fair closes) until Aug. 27. The auction will appear on a state designated page on eBay, which prospective bidders can link to by visiting the Treasurer’s website – www.treasurer.il.gov – and clicking the eBay logo.

Prior to the start of the auction, the Treasurer’s Office will preview the items on its website. The office will also display the items up for sale at the Treasurer’s Tent during the State Fair.

In addition to generating more revenue for the state, online auctions defray the costs associated with live auctions. They reduce transportation costs and the need to hire a professional auctioneer while significantly cutting staff hours and lowering other overhead costs.

Giannoulias estimates the Internet auction will save more than 400 hours in staff time, which will amount to more than $10,000 savings in staff alone.

“Online bidding will make this antiquated auction process more efficient and more profitable for Illinois by eliminating the costs that eat up proceeds,” Giannoulias said.

Several states have auctioned unclaimed property through eBay, including Pennsylvania, Texas, Massachusetts, Colorado, Maryland, Nebraska and Wisconsin.

“More than a dozen states have had great success using eBay for unclaimed property auctions,” said David Milby, association manager for the National Association of Unclaimed Property Administrators. “By widening the bidding audience, online auctions can generate more money for the rightful owners of     the property.”

In Massachusetts, the average price-per-lot of auctioned property increased from $325 to $700 in 2005, the first year the state switched to an online auction. The number of bidders attending its live auctions had averaged less than 25 people. But more than 125,000 views and more than 6,200 bids were recorded during the state’s latest eBay auction.

“Our Abandoned Property eBay auctions have something for everyone,” said Massachusetts State Treasurer Tim Cahill. “By holding the auction on eBay, we’re taking advantage of technology, reaching more bidders, and will ultimately bring in more proceeds for Massachusetts.”

Sales prices at Texas auctions used to average between 10 and 12 percent above their appraised prices. Now, auctioned items fetch anywhere between 60 and 80 percent above their appraisals on eBay.

“Governments must take advantage of the same technologies that are transforming the American economy to make our services more efficient and effective,” said George Tamayo, manager of the State of Texas’ Unclaimed Property Division. “We consistently sell items in excess of their pre-sale price. Auctioning the contents of abandoned safe deposit boxes on eBay removes the obstacles of geography and allows us to sell items in a global marketplace.”

The Treasurer’s Office plans to sell up to 50 items each week during auctions conducted throughout the year at reserved prices. Items that do not generate bids worth their reserve price will be transferred to an online eBay store and sold for a set amount.

The Treasurer’s Office publishes the names of the contents’ owners online and in local newspapers each year in an effort to re-unite the property with its rightful owners or heirs. If they do not come forward, the property is eventually auctioned off. If they do come forward following the auction, the rightful owners can collect the money from the sale of the property. Property owners stand to gain from the online auction as well, considering the higher selling prices will result in higher payouts if they claim their property following a sale.

“Our goal is to reach out to residents of Illinois and reunite them with money or valuable items that they never knew they had so they can claim what rightfully belongs to them,” Giannoulias said. “As always, I encourage Illinoisans to search our online database to find out if we have their money or property.”

During the last fiscal year that ended June 30, the Treasurer’s Office reunited Illinoisans with a record $92 million in unclaimed property. Along with the contents of safe deposit boxes, unclaimed property also includes lost and forgotten savings and checking accounts, paid-up life insurance policies and stocks, bonds and mutual funds.