Finder Firms Crackdown Takes Center Stage

Firms Say Proposed Law Bad Legislation

By Lisa Parker

NBC Channel 5, Chicago, IL

Published Monday March 17, 2008

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CHICAGO -- The push to crack down on "finder firms" took center state for some lawmakers on Monday.
Finder firms are the companies that offer to help people get their unclaimed property back -- for a fee.

As a proposed law in the Illinois legislature to curb the way they operate goes forward, the central question is how much money a company can charge consumers for finding something that is already theirs.

Most unclaimed property goes to the treasurer's office after a five-year dormancy period, after which consumers can get it back for free. A major exception to that is overpaid real estate taxes, which become property of the county after five years.

Target 5's Lisa Parker reported that the story begins for many consumers with a letter from a finder firm telling them they have unclaimed property, and the firm's offer to get it back for them for a fee. While the state says many consumers have expressed frustration about this kind of business, Parker reported, one of those who complained was an Illinois lawmaker.

"This initiative began for me when I got a letter myself," said State Sen. Don Harmon (D-Oak Park). "I can pick up the phone and call the treasurer's office and say, 'Hey, what gives?'"

Harmon is now a sponsor of the legislation that would drastically change the way finder firms operate in Illinois. Currently, there is no cap on the amount they can charge for reuniting consumers with lost funds during the first five years a bank or other financial institution has labeled that asset "abandoned."

State Treasurer Alexi Giannoulias backs the bill, which would cap finder firms at 10 percent of the unclaimed funds in question, and also makes them disclose where the asset is.

"That money is your money -- it already belongs to you and does so forever in Illinois," Giannoulias said.

Finder firms call the legislation bad for consumers and said they will fight it. After Target 5's recent report on finder firms, viewers weighed in, some who say finder firms help by doing what the state and financial companies don't -- actively search for the owners of the funds.

One woman, though, made her way to the microphone to share a deal that she didn't take.

"They could help me get that money back if I would agree and sign a release that I would give them 50 percent of whatever they collected," said Anita Miller.