On dormant bank accounts

Banking experts estimate that up to £ 5 billion in UK bank accounts not claimed that can sit 'inactive' gone. What does this mean and could claim to a share in this huge amount idle money?

A bank account is dormant, if, in the words of the British Bankers' Association, a Bank and a customer 'lose touch with each other'. What is this usually in practice means that a customer has passed either or moved house and the Bank have not been said and are unable to locate the account owner some time later.

If there are no transactions have an account over a period of 12 months, the Bank will write to ask if you want to keep the account open the account holder at the last known address. If no response is received, the Bank will change to 'inactive' the status of the account. This means that from now on no instructions, Chequebooks or other correspondence to the customer are sent.

The money in the account will still be interested with what whatever the normal rate of earning account is, and the Bank will still track the balance and keep a record of the last known address of the holder.

There are two main reasons for an account that is made dormant. Of first and most obvious to save the banks to send administrative instructions and the like if (others initiated than by the Bank itself as such as interest payments) there is no activity on the account from month to month.

However, the reason is to protect against identity theft. If a bank is to send statements to an address if the account holder no longer exists to receive, it all too easy for these documents in the hands of fraudsters end, who could use the confidential proceeding included a campaign of identity theft.

The most dormant accounts have very small balances, but some will include inevitably contain often a considerable sum to someone who has died. If you think you may be held entitled to money in a dormant account, you make a claim by filling out a form, by the relevant Bank.

You have your reasons for claims such as the account was a close relative, whose Anwesen passed to you. Have your own identity and your connection to the original account holder if applicable be.

If the Bank, are entitled to assume that you do not agree to the account, have the right to pursue remedies, where is your claim checks. If the call fails, you can take your claim to the Financial Ombudsman Service, its deciding is final and binding.