IBA Compliance Connection

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Under the new Illinois unclaimed property law, would auto debits for utility payments or payroll direct deposits be considered “previously authorized recurring ACH transfers,” meaning that they do not count as indications of interest?

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Yes, we believe that automatically recurring ACH credits and debits are excluded from consideration as indications of interest.

The Illinois Revised Uniform Unclaimed Property Act (Illinois RUUPA) provides that deposits and withdrawals are activities that count as indications of interest, but it excludes previously authorized recurring ACH debits and credits. This exclusion would cover previously authorized ACH transactions that recur automatically, such as utility payments withdrawn by ACH debits and payroll deposits deposited by ACH credits.

For resources related to our guidance, please see:

  • Illinois RUUPA, 765 ILCS 1026/15-210(b) (“Under this Act, an indication of an apparent owner’s interest in property includes: . . . (5) a deposit into or withdrawal from an account at a financial organization, except for a recurring Automated Clearing House (ACH) debit or credit previously authorized by the apparent owner or an automatic reinvestment of dividends or interest; . . .”)