Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Finding a big heap of forgotten cash would be a dream come true for many, especially with Christmas right around the corner. According to the National Association of Unclaimed Property Administrators (NAUPA), there is approximately $70 billion owed to about 33 million people, or roughly 1 in 7 Americans. 

The unclaimed money comes from a lot of sources, such as old checking and savings accounts, stocks, refunds, customer overpayments, and more. NAUPA says the average claim totals $1,134.

One Redditor on the r/personalfinance subreddit accidentally discovered he had an unclaimed account on steroids. He was in his local bank on a different matter when he was told they had discovered an old business credit card account in his name that had $70,000 in credit on it to which he was entitled.

The Redditor said it came from a company he used to work for that has since gone out of business. The credit card was issued to employees for expenses. Apparently, though, the company is not associated with the account as it is only in the Redditor’s name and the bank insists the money is his. However, he is concerned about taking the money and getting charged with theft or embezzlement. What should he do?

24/7 Wall St. Insights:

• There is over $70 billion worth of unclaimed property across the country due to 1 out of every 7 Americans. The average amount owed is over $1,100.
• Finding out you have a windfall due you can seem like a stroke of luck, but make sure the money doesn’t come with strings attached. 
• While most of the time it is a straightforward process, sometimes there are special circumstances attached that requires speaking with tax or legal professionals before taking possession of unclaimed money.

Don’t mix business with pleasure

The Redditor is right to be cautious. Taking company money for personal use can put you in a world of serious repercussions. And just because a bank employee tells you it is fine to take the money, don’t rush to grab it with both hands right away.

First, using a business credit card for personal expenses might not be illegal, but it could open you up to personal liability, tax implications, and possibly even damage your personal credit score. While this doesn’t seem to be the case with the Redditor, it’s best to keep personal and business expenses separate.

He seems unaware, however, where this massive credit to the account came from. He figures the business forgot about it because the account was in his name and because it was his employer’s business expense account he never thought about it. Now he has a potential windfall awaiting him.

Special circumstances require special considerations

I’m not a lawyer or a tax professional, so this is only my personal opinion, but he should seek out legal advice right away. The bank may be correct that because he is the sole owner of the account he can claim the money, but speaking with a lawyer first could reveal any hidden issues or liabilities he might face.

For example, returned purchases would not be subject to any tax liability, but if the large credit balance came from a purchase that was claimed as a tax deduction or rewards not earned through purchases, such as a bonus for opening an account, it could be deemed taxable by the IRS.

Because it is a business account, business credit card rewards are generally not taxable either, though rewards paid in cash could be, especially if they exceed $600 in a year. That’s why seeking out legal advice and then a tax professional is important.

Key takeaway

While finding unclaimed property due you is a wonderful experience — I just searched the NAUPA database for my name without luck — but rushing forward, particularly in circumstances like the Redditor’s where an account that technically may not be really his, requires you proceed cautiously.

It seems odd a business would put an expense account card in an employee’s name without reference to the company, so it might be more complicated than just signing on the dotted line and taking the money. 

It is also why you should regularly look at your credit report to ensure it is correct and complete as an account like this just might show up.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

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