Between July of the previous year and November, Maryland accumulated $242 million in unclaimed funds but only managed to return $53 million, a mere 22 percent, to its rightful owners. These unclaimed properties can range from forgotten bank accounts to uncashed checks or utility deposits. Currently, over $199 million remains unclaimed, affecting approximately 1.5 million individuals listed on the state’s Unclaimed Property website. The outdated system used by the state limits its ability to accurately track these funds, raising concerns about transparency and efficiency.

Uncovering the Issues Behind Maryland's Unclaimed Property Division

In the picturesque yet challenging autumn season, as leaves turn vibrant shades of gold and crimson, Maryland finds itself grappling with an outdated system that hinders the return of unclaimed property. The State Comptroller’s office acknowledges the use of software and processes dating back three decades, which severely limit its capacity to manage and return these funds efficiently.

Despite claims of “remarkable success” in 2023, where the division collected $315 million and returned $81 million, experts like Ron Lizzi argue that this represents a failure. Only 26 percent of collected funds were returned, leaving many citizens frustrated with the bureaucratic hurdles they face when attempting to reclaim their money. Brooke Lierman, Maryland’s State Comptroller, admits that significant improvements are necessary and is advocating for legislative changes to streamline the process.

The state is partnering with Kelmar, a company trusted by 40 other states, to develop a new website. However, this solution won’t be available until next year. In contrast, states like Texas, Illinois, and Wisconsin have implemented data-matching programs that automatically return unclaimed funds, achieving higher return rates. For instance, Illinois has returned $100 million to over 400,000 people, while Wisconsin boasts a 47 percent return rate.

Under current law, Maryland cannot automatically return funds without claims, unlike neighboring states. Moreover, the state currently uses unclaimed funds as a revenue stream, contributing $100 million annually to its general fund. This practice raises ethical concerns, as it incentivizes the state to retain rather than return these funds.

In response, Comptroller Lierman is pushing for two bills that would allow automatic returns for claims under $5,000. She emphasizes increased outreach efforts and recent website upgrades, though challenges persist, such as difficulties in name searches and limited information display.

From a journalist's perspective, this situation highlights the urgent need for reform in Maryland’s unclaimed property division. The state must prioritize returning these funds to their rightful owners over using them as a financial resource. Transparency and modernization are crucial steps toward regaining public trust and ensuring that forgotten money finds its way back to those who deserve it. This case serves as a reminder that government systems should always work for the benefit of the people they serve, not as unintended revenue streams.