This article explains what a reclamation is, why it might occur in your account, and the step-by-step process to resolve it, including expected timelines and documentation requirements.
What is a Reclamation?
A reclamation is a formal demand for the return of funds or securities that were incorrectly credited to or debited from an account. Reclamations occur when there's an error in processing transactions, particularly involving securities, dividends, or cash transfers.
Common causes of Reclamations
Reclamations typically occur due to:
Transaction errors: When securities or funds are incorrectly transferred to or from an account
Corporate Action processing: Errors in dividend payments, stock splits, or other corporate actions
System or operational issues: Technical problems in processing trades or transfers
Closed or Inactive accounts: When funds are sent to accounts that have been closed or are inactive
ACH Return errors: Failed electronic transfers where funds were initially credited but later rejected
Death of Account Holder: When payments continue after an account holder's death
Duplicate payments: When the same transaction is processed twice
Reclamation resolution process
When M1 issues a reclamation notice, follow these steps:
Review the Reclamation Notice
Contact M1 Client Sucess
Account restrictions during resolution
During an active reclamation:
Trading will be temporarily paused
Withdrawals might be limited
Transfers could be paused
If you have any further questions, please contact us.
This content was generated using artificial intelligence and is intended for informational and educational purposes only. While reasonable efforts are made to ensure accuracy, AI-generated outputs may omit key context; and should not be construed as financial, investment, legal, or tax advice. Users should independently verify all information and consult a qualified professional before making any financial decisions.
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