The Commission on Unclaimed Assets has called for money in dormant accounts to be used for financial education.
The Commission recommended establishing a Social Investment Bank that would take in unclaimed cash and give it to community projects that aided financial inclusion.
Our view
The subject of distributing so-called ‘orphan assets’ has been a long-standing divided subject in the financial services industry.
Whilst we believe that unclaimed money could be put to better use, and financial education is definitely a good idea, it is someone’s money, even though they (nor their heirs) have not claimed it.
This therefore borders on theft. There should be a limit e.g. all accounts with less than £100 should be closed if dormant after two years. The larger ones should have private investigators employed and the cost is deducted from the account.