BBA supports Government’s unclaimed assets plan

The British Bankers’ Association (BBA) has confirmed that the banking industry supports the government’s proposed initiative on unclaimed banking assets. According to chief executive designate Angela Knight, the industry has worked with the government to get the technical details right, while giving priority to consumers’ rights to reclaim their money whenever they wish.

Ms Knight said: ‘The banking industry has been in a detailed discussion with the Government since the 2005 Pre-Budget Report on the introduction of an unclaimed assets scheme for bank and building society accounts with the aim of getting the technical detail right on their initiative. All along our priority has been the protection of the right of customers to reclaim their monies at any time.  A key element of the approach proposed within the consultation paper therefore is that even after the transfer of their ‘unclaimed assets’ individuals will retain the right to reclaim their monies via their bank or building society as at present.’

The money will move to a central reclaim fund once it has been unclaimed for 15 years, however, the BBA proposes that banks continue to deal with customers so that there is as little inconvenience as possible and no need for account records to be moved to the central body. This approach will also leave the financial body free to concentrate on financial management and will save costs.

Banks and building societies are to step up reclaim activity before the introduction of the unclaimed asset scheme and their commitment to liaise with customers will be enshrined in the next revision of the Banking Code, which is currently in progress.

Current estimates by the banking industry suggest that several hundred million pounds are unclaimed and tens of millions more may become available each year. Consultation on distribution of the funds will take place later this year.