Banks and Building Societies are backing the governments proposals to launch a scheme to gather unclaimed asset., which they claim will help them to continue to provide a face-to-face service to customers.
An account that has not been used for 15 years will be classed as unclaimed and the assets will be put to good use. However, the account holders will still be able to claim assets, which are rightfully theirs, through their bank or building society. Any funds that are not required to cover the costs of the scheme will be reinvested in the community. However, banks and building societies will promote the lost accounts information, in the hope of reuniting accounts and accountholders, in the twelve months before the beginning of the scheme. The scheme of course does require legislation to protect the rights of the account holders and safeguard participating institutions.
Our view
It seems reasonable that after a long period, the money ‘orphan’ money should be put to good use, however, we feel sure that Government Agencies, for a fee, such as the NHS and HM Revenue and Customs, the Department for Work and Pensions and the Probate Registry should have their databases searched as well before any money is allocated.