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