Uncashed settlement checks
Uncashed settlement checks are payments never deposited before they expire. The money may be reissued, redistributed or redirected.
Also called: stale settlement check, expired settlement check, void settlement check
Uncashed settlement checks are payments never deposited before they expire. The money may be reissued, redistributed or redirected.
What it means
Uncashed settlement checks are payments that were sent to class members but never deposited before the check expired. Each check shows a "void after" date. Separately, under the Uniform Commercial Code a bank has no obligation to pay a check presented more than six months after its date, though it may still choose to.
What happens to the money depends on the settlement agreement and the court. It can be reissued to the person who did not cash it, if funds remain. It can go into a second distribution to other class members. It can go to a charity through cy pres or back to the defendant. In some cases it goes to a state unclaimed property program.
Most checks do get cashed. In a 2019 FTC staff study of consumer class action settlements, checks were cashed about 77 percent of the time on average, and more often when payments were larger.
What it means for you
Cash or deposit your check as soon as it arrives. The void date is printed on it, and the money may not be there later. If it is lost, expired or went to an old address, contact the administrator listed on the settlement website right away and ask for a reissue. That is only possible while the administrator still has funds and is processing requests. Do not pay anyone to track down a check, and do not deposit one you were not expecting from a settlement you never filed in.
Example
Say you file a claim, move, and forget to update your address. The check goes to your old apartment and is never cashed. Months later the settlement website shows your claim as paid. You contact the administrator, confirm who you are and give your new address. Because money remains in the fund, a replacement check is issued.
FAQ
It expires on the void date. After that, the money may be reissued if funds remain. It may also be added to a second distribution, sent to a charity, returned to the defendant or turned over to a state, depending on the settlement agreement.
Often, if you ask while the administrator still has funds and is handling requests. The FTC says that for its refund programs it may be able to reissue an expired check only if money remains in the settlement fund. Contact the administrator named on the settlement website.
Related terms
- UCC § 4-404, bank not obliged to pay a check more than six months old (Cornell LII)
- FTC staff report, Consumers and Class Actions: A Retrospective and Analysis of Settlement Campaigns (September 2019)
- FTC, Refund Programs: Frequently Asked Questions
- NAUPA, What is unclaimed property?
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.