DIFS Director Anita Fox Applauds New Law That Extends Important Financial Protection for Military Members

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Consumer Hotline: 877-999-6442, Michigan.gov/DIFScomplaints

FOR IMMEDIATE RELEASE: July 24, 2024

(LANSING, MICH) Michigan Department of Insurance and Financial Services (DIFS) Director Anita Fox is applauding Governor Gretchen Whitmer for signing into law Senate Bill 388. This bill extends the length of time a credit union account belonging to an active duty service member or reservist on active orders can be inactive before it is turned over to the State as unclaimed property.

"When credit union accounts sit dormant for an extended period of time, they are turned over to the State as unclaimed property. For military heroes who are on extended active duty, losing access to their accounts is a real concern," said DIFS Director Anita Fox. "This new law, signed by Governor Whitmer and spearheaded in the Legislature by Senator Klinefelt, gives these members of the military a full five years of account protection."

State law lays out requirements for how financial institutions and other companies must handle unclaimed property. The length of time that property, including money in a credit union account, can be unclaimed or inactive before being presumed abandoned is, in most cases, three years. This normal dormancy period could result in some active duty military members having their money turned over to the state as unclaimed property if their overseas service is longer than the required three year dormancy period. This new law protects those service members by giving them an extra two years, up to five in total, to avoid having to go through the State's Unclaimed Property process.

Consumers who have questions or disputes that cannot be directly resolved with their financial institutions can contact DIFS Monday through Friday 8 a.m. to 5 p.m. at 877-999-6442 or file a complaint online at Michigan.gov/DIFScomplaints.

The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, X, or LinkedIn.

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