| Banking experts estimate that up to £5bn | | | | administration costs of sending out |
| may be sitting unclaimed in UK bank accounts | | | | statements and the like when there is no |
| that have gone 'dormant'. What does this | | | | activity on the account from month to month |
| mean, and could you be entitled to a share in | | | | (other than that initiated by the bank |
| this huge amount of idle money? | | | | itself, such as interest payments). |
| | | | |
| A bank account goes dormant when, in the | | | | The more important reason however is to guard |
| words of the British Bankers' Association, a | | | | against identity fraud. If a bank continues |
| bank and a customer 'lose touch with each | | | | to send statements to an address when the |
| other'. What this usually means in practice | | | | account holder is no longer there to receive |
| is that a customer has either passed away or | | | | them, it is all too easy for these documents |
| moved house, and the bank haven't been told | | | | to end up in the hands of fraudsters, who |
| and are unable to locate the account holder | | | | could use the sensitive information they |
| some time later. | | | | contain to begin a campaign of ID theft. |
| | | | |
| If there are no transactions on an account | | | | Most dormant accounts will have very small |
| over a period of around 12 months, the bank | | | | balances, but some will inevitably contain a |
| will write to the account holder at the last | | | | substantial sum, often those belonging to |
| known address to ask them if they wish to | | | | someone who has passed away. If you think you |
| keep the account open. If no reply is | | | | may be entitled to money held in a dormant |
| received, then the bank will change the | | | | account, you can make a claim by filling in a |
| status of the account to 'dormant'. This | | | | form available from the bank in question. |
| means that from now on, no statements, | | | | |
| chequebooks or other correspondance will be | | | | You will need to give your reasons for making |
| sent out to the customer. | | | | a claim, such as that the account belonged to |
| | | | a close relative whose estate was passed to |
| The money in the account will still earn | | | | you. You will also need to prove your own |
| interest at whatever the normal rate of that | | | | identity, and your connection to the original |
| account is, and the bank will still keep | | | | account holder if applicable. |
| track of the account balance and keep a | | | | |
| record of the last known address of the | | | | If the bank don't agree that you're entitled |
| holder. | | | | to take over the account, you have the right |
| | | | to pursue an appeal, where your claim is |
| There are two main reasons for an account | | | | re-examined. If the appeal fails, you can |
| being made dormant. The first and most | | | | take your claim to the Financial Ombudsman |
| obvious one is to save the banks the | | | | Service, whose decision is final and binding. |