Michigan to Receive $9 Million from Major MoneyGram Settlement

Residents of Michigan who purchased “official checks” from MoneyGram a few years ago but never cashed are now considering their options for getting their money back.

A portion of the over $102 million multistate settlement that was announced this week is going to Michigan, totaling around $9 million. Delaware, the company that housed the funds, will give a share of that settlement to Michigan and 29 other states.

The U.S. Supreme Court unanimously decided in late February 2023, following a protracted legal fight, that Delaware, the state in which MoneyGram is incorporated, had no jurisdiction to retain millions of dollars in uncashed MoneyGram checks.

Although MoneyGram is established in Delaware, like many large firms, it has its headquarters located in Dallas. The “official checks” that are involved are usually sold at banks and credit unions and are frequently for bigger amounts than money orders.

Attorney General Dana Nessel of Michigan said on Friday that people of Michigan who have unclaimed MoneyGram property will get a $9 million payout as part of a settlement involving a bipartisan coalition of 30 states.

According to the findings of a multistate audit conducted by Nessel’s office, MoneyGram has been “incorrectly reporting and remitting the value of unclaimed checks to the state of Delaware from 2011 to 2017.”

“After a longstanding dispute, Michigan residents will finally have a real opportunity to claim their uncashed MoneyGram checks,” Nessel stated

“I’m glad we were able to reach a resolution that prioritizes Michiganders and ensures they can receive what is rightfully theirs.”

The number of Michigan people who will be entitled to the money is currently unknown, according to Danny Wimmer, a spokesman for Nessel’s Office, who talked with the Detroit Free Press.

“The money is directly tied to unclaimed property,” Wimmer said, “and will correlate to Michigan residents with unredeemed money orders or similar products from MoneyGram, which were reported by MoneyGram as products purchased in Michigan.”

According to him, there are no “damages” or payments included in the settlement, nor is it a punishment for Delaware breaking the law.

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In the coming weeks, Michigan anticipates receiving comprehensive information about the property and buyers, according to Wimmer. After it is received, the information will be processed by the Michigan Department of Treasury.

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According to the Michigan Attorney General’s announcement, the state of Delaware, which is now in possession of the funds as a result of MoneyGram’s inaccurate reporting and remitting, will start sending checks to the state of Michigan in the upcoming weeks.

Money will be transferred by Michigan to validated claimants. The website of the Michigan Department of Treasury allows citizens to search for any unclaimed property they might be able to claim and to submit a claim for it. See unclaimedproperty.michigan.gov.

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