However, RV loans are much larger than typical auto loans. Like an auto loan, RV loans usually have fixed interest rates meaning your monthly payments will stay the same through the course of the loan. The borrower will then pay back the lender in installment payments which contain principal and interest until the loan is paid off.Īn RV loan is like an auto loan with subtle differences. All of the information was hand keyed.An RV loan is a loan that helps borrowers buy a recreation vehicle or RV. Whether working with outstanding checks or deposit accounts, the only technology involved was the reporting software. “There was no integration with other systems, and nothing was automated.” “The first reporting that I was engaged in required us to obtain a list of outstanding checks from our Account Reconciliation Package (ARP) group and manually keying that information into the reporting software,” she says. Bank, who has worked in escheatment for 20 years. Just ask Becky Stephens, Assistant Vice President in Business Project Analytics at U.S. And new technologies available because of improvements in smart devices and digitization of payments can do that considerably.įew accounting processes are more manual and time-consuming than escheatment. However, doing it more efficiently can at least cut down some of the costs. After all, the money identified during the process is either returned to its rightful owner or turned over to the state. Worse yet, the time and effort spent on escheatment is work that creates no true value. Yet with states facing increasing economic pressures, the focus on escheatment compliance is likely to grow in the coming years. ![]() And if the property is not escheated, significant fines and penalties can be levied by the state that date back several years.Īdd a patchwork of laws that vary from state to state and rules that even vary by property type, and the costs continue to mount. It typically costs just as much to process an unclaimed payment of $5 as it does for $500 or $5,000. In essence, if a business makes payments that go uncashed or holds money in accounts that go untouched, it’s responsible for escheatment.Īnd the cost of escheatment can grow quickly because it’s tied to the number of possible properties rather than the value of them. State governments have the right to take ownership of unclaimed funds based on specific laws and practices built around this escheatment process. Recent advances have allowed for the automation of some parts of the escheatment process, with more on the way.Īutomation can decrease the time, energy and money spent processing escheatment, and through increased visibility and digitizing the claims process, may even be able to speed up the process of identifying and returning some of that money to its rightful owners before it becomes escheatable. Most uncashed checks are for small amounts – small enough for the rightful owner to lose sight of them – but large enough to become a big headache for the companies that need to account for them. With 55 jurisdictions having laws that require unclaimed property reporting, there is no way to avoid the costs of tracking and processing escheatable items, but there are ways to contain them. It is estimated that only 10-20% of companies are in full compliance with the various escheatment requirements due to all the complex state regulations surrounding them. There is tremendous opportunity to improve how unclaimed checks are managed and potentially escheated to the applicable state. Escheatment is a compliance headache for most organizations and checks are front and center. Automate the process to improve your AP department.įor years now, we’ve been hearing that checks are going away. However, Aite-Novarica Group reports that 76% of North American businesses used checks to make payments in the past year, suggesting that checks are still among the most widely used tools for business payments.Ĭhecks don’t age well and are more likely to go unclaimed than electronic payments, resulting in escheatment, the process of reporting and remitting unclaimed property to the state. Find a financial advisor or wealth specialistĭiffering state laws for unclaimed property can make the escheatment process time-consuming and costly.
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