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Banks to hand dormant account cash to charities
05/12/2005 20:59
LONDON (Reuters) - Banks are set to hand over several hundred million pounds held in dormant accounts to youth and community charities under plans announced by the government on Monday.
Chancellor Gordon Brown said in his pre-budget report that banks and building societies had agreed that unclaimed assets held in accounts will be diverted to help improve youth services and financial education. It said banks could have an option to focus on their local community charities.
Dormant accounts will be defined as those untouched for 15 years.
Banks have not opposed giving the cash to charity but talks in the last two years have centred on how long cash needs to have been untouched for it to be considered dormant, with estimates ranging from three years up to 20.
"The decision to base the unclaimed assets scheme on a 15-year definition of dormancy recognises that monies are often reclaimed after an extended period of inactivity, but also that genuinely lost or ownerless assets can usefully be reinvested in the community," said Ian Mullen, chief executive of the British Bankers? Association.
Banks also want to ensure they are not burdened by administration costs and said the proposals should be extended to other savings products, such as NS&I accounts and premium bonds.
Account holders will be able to reclaim cash if they discover money in an account has been handed out.
SEVERAL HUNDRED MILLION POUNDS UNCLAIMED
Estimates of the amount lying dormant vary, although the pre-budget report estimated that several hundred million pounds may currently lie unclaimed.
The Commission on Unclaimed Assets, which was launched last week to review how to deal with savings and other investments that lie untouched for years, said more than 5 billion pounds could be dormant in UK banks alone, while other estimates have suggested the amount is near 1 billion pounds.
Building society accounts will also be included. Research last year estimated 50 million-70 million pounds was considered lost for at least 15 years in their accounts.
The Commission on Unclaimed Assets aims to report on the proposals by next June and said it expected the first large-scale delivery of funds by April 2007.
It said its first concern, however, is to return money and accrued interest to account holders wherever possible. It said that, based on experiences in Ireland and elsewhere, it expected about 60 percent of money to be returned to account holders.
I did some digging around after reading this tonight, and found one account of mine not touched since 1982, left in it was ?106, so how many people are now about to be legally mugged by a Mr G.Brown
05/12/2005 20:59
LONDON (Reuters) - Banks are set to hand over several hundred million pounds held in dormant accounts to youth and community charities under plans announced by the government on Monday.
Chancellor Gordon Brown said in his pre-budget report that banks and building societies had agreed that unclaimed assets held in accounts will be diverted to help improve youth services and financial education. It said banks could have an option to focus on their local community charities.
Dormant accounts will be defined as those untouched for 15 years.
Banks have not opposed giving the cash to charity but talks in the last two years have centred on how long cash needs to have been untouched for it to be considered dormant, with estimates ranging from three years up to 20.
"The decision to base the unclaimed assets scheme on a 15-year definition of dormancy recognises that monies are often reclaimed after an extended period of inactivity, but also that genuinely lost or ownerless assets can usefully be reinvested in the community," said Ian Mullen, chief executive of the British Bankers? Association.
Banks also want to ensure they are not burdened by administration costs and said the proposals should be extended to other savings products, such as NS&I accounts and premium bonds.
Account holders will be able to reclaim cash if they discover money in an account has been handed out.
SEVERAL HUNDRED MILLION POUNDS UNCLAIMED
Estimates of the amount lying dormant vary, although the pre-budget report estimated that several hundred million pounds may currently lie unclaimed.
The Commission on Unclaimed Assets, which was launched last week to review how to deal with savings and other investments that lie untouched for years, said more than 5 billion pounds could be dormant in UK banks alone, while other estimates have suggested the amount is near 1 billion pounds.
Building society accounts will also be included. Research last year estimated 50 million-70 million pounds was considered lost for at least 15 years in their accounts.
The Commission on Unclaimed Assets aims to report on the proposals by next June and said it expected the first large-scale delivery of funds by April 2007.
It said its first concern, however, is to return money and accrued interest to account holders wherever possible. It said that, based on experiences in Ireland and elsewhere, it expected about 60 percent of money to be returned to account holders.
I did some digging around after reading this tonight, and found one account of mine not touched since 1982, left in it was ?106, so how many people are now about to be legally mugged by a Mr G.Brown
