Claim your forgotten funds
By Esther Shaw
The idea of losing track of your hard-earned cash may sound unlikely, but millions of pounds are lying idle in dormant accounts with banks, building societies and other providers.
This may be because customers have forgotten about their cash, or because they have moved home or even country and have not updated their details with the relevant financial providers.
Either way, estimates put the amount in obsolete accounts at anything between £400 million and £1 billion.
Creation of a Central Reclaim Fund
However, this cash won’t be lying unclaimed for long, as the Government is now taking control of the money held in dormant accounts - money untouched for 15 years or more - and plans to hold it in a new Central Reclaim Fund.
The chancellor outlined the details of the fund – also known as a social investment bank – in December’s pre-Budget report, and announced that it will be managed by the Co-operative Financial Services.
The Reclaim Fund will be set up to return dormant assets to their legitimate owners if they come forward at any stage, and to transfer the remainder of the money to good causes.
Reuniting customers with their cash
For the past few years, banks, building societies and National Savings & Investments (NS&I) have been working to reunite customers with dormant funds.
Insurer Aviva, for example, has just announced that it has passed its target – set in 2007 – to return £40 million in unclaimed funds to its customers; it now has its sights on hitting £50 million.
In its latest mailing at the end of last year, around 5,500 customers were each told they would receive an average £1,000 payment.
“Our campaign has proved extremely successful,” said Toby Strauss from Aviva. “Although returning unclaimed assets isn’t easy – and can involve extensive investigation work – our customers are always pleased to receive assets they had forgotten about.”
Elsewhere, last August, HSBC announced that it had reunited more than 5,000 customers with more than £8.55 million since its campaign began in September 2008.
“Money lies in dormant accounts for a variety of reasons,” said HSBC spokesman Brendan Cook. “People die and their accounts are not traced when an estate is being administered, small balances are often just forgotten, while larger balances often just sit there only to be used in emergencies.”
Given that the reuniting process involves private financial details, banks cannot write to customers – so are using a combination of advertising and publicity to raise awareness, as well as an active tracing programme.
Digging up your lost treasure
Nonetheless, if you think you may have cash in an unused account, you don’t have to wait for your bank or building society to contact you - you can start the search yourself.
One of the best places to begin is the simple “one-stop shop” tracing service available at www.mylostaccount.org.uk
The site, launched at the beginning of 2008, unites the tracing schemes of the British Bankers’ Association (BBA), the Building Societies (BSA), and NS&I - which also covers lost premium bonds.
To launch a search, you need to include as much detail as you can on the online form. And, once you begin a search, you should hear back within three months.
Top tips for finding your funds
The more information you can provide, the easier and faster it is to get your money back.
- Old statements or passbooks
- Location of the branch where the account was opened
- Your previous addresses
- When you think the account was last used
- The amount of money you think is in the account
If you are claiming for someone else, or believe you might be entitled to some dormant funds, you will need to provide proof of that entitlement, such as a will.
Further tracing services
Further to www.mylostaccount.org.uk, the Unclaimed Assets Register (UAR) offers a separate tracing service which enables you to search a database of life policies, pension funds and other investments at www.uar.co.uk.
However, you will have to pay a fee of £25 to carry out the search; a free pension tracing service is available atwww.thepensionservice.gov.uk .
And finally, to be reunited with unclaimed premium bond winnings – for which there is no time limit – go to www.nsandi.com .
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