What Are Uncashed Settlement Checks?
Uncashed settlement checks are payments that expire before anyone deposits them. Here is where that money goes and how to get a check reissued.
Uncashed settlement checks are payments sent to class members that are never deposited before they expire. Most settlement checks are valid only for a limited time printed on the check, after which they become void and the money stays in the settlement fund.
Why it matters to you
Filing a claim is only half the job. If you set a settlement check aside and forget it, you can lose the payment. Some settlements also limit later rounds of payments to people who cashed their first check, so an uncashed check can cost you more than its face value.
What happens to the money
- ✓It may be redistributed to other claimants in a secondary distribution
- ✓It may go to a cy pres recipient, such as a related nonprofit
- ✓In some settlements, it may revert to the defendant
- ✓In some cases, it may be sent to a state unclaimed property program
The settlement agreement decides which of these applies.
Contact the settlement administrator through the official settlement website and ask whether it can reissue the payment. Many administrators will reissue within a set window, but once the fund is closed out, that option usually ends.
A simple example
A class member receives a settlement check that says it is void after a stated date. They forget about it. After the date passes, the administrator voids the check. Later the leftover money is split among those who cashed their checks, and the remainder goes to a nonprofit.
Settlement checks are easy to mistake for junk mail or marketing offers. They often come from an unfamiliar administrator name and may be for a small amount. Before you throw away an envelope, check whether it refers to a case you claimed. If you are unsure whether a check is genuine, look up the administrator and case on the official settlement website rather than calling a number printed on the check.
Related terms
Uncashed checks are a major source of residual funds. For practical tips, see how to cash a class action settlement check.
SettleScout helps you keep track of what you have claimed, so you recognize a settlement check when it arrives and deposit it in time.
Frequently Asked Questions
How long do I have to cash a settlement check?
It depends on the settlement. The deadline is usually printed on the check and is often a few months from the issue date.
Can I get an expired settlement check reissued?
Often yes, if you ask the administrator before the fund is fully distributed. Contact them through the official settlement website.
Do uncashed checks go to the state as unclaimed money?
Sometimes, but not usually. Most settlements redistribute the money or send it to cy pres. Checking your state's unclaimed property site is still worth doing.
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