This is an important milestone for the Dormant Accounts Scheme, whereby money in accounts with no customer activity of 15 years or more will be made available to charitable causes.
Reclaim Fund will receive dormant account monies from banks and building societies and distribute to the Big Lottery Fund for onwards distribution. In England, it will be passed to the Big Society Bank, while different arrangements will apply elsewhere in the UK.
There is also an alternative scheme for institutions with assets below £7 billion. This will enable them to directly support good causes within their local communities or those that they have an affinity with, rather than via the Big Society Bank. Most BSA members are eligible for the alternative scheme, and this is a good fit with their local and regional franchises, according to the BSA.
Customers will always be able to reclaim their money, even after the scheme is up and running. All they have to do is contact their building society or bank directly.
Commenting, BSA Director-General, Adrian Coles, said: “The industry has worked for a number of years on this scheme, so it’s good to be reaching this important stage.
“BSA members, in readiness for the scheme, have made considerable efforts to track down savers whose accounts are dormant. Since 2008, mutuals have reunited with their owners around £65 million across 200,000 accounts. This includes the individual efforts of mutuals writing to their members and tracing lost savers, as well as traces conducted via www.mylostaccount.org.uk, the free service for customers to use.
“BSA members estimate around £115 million is still lying dormant in accounts held with them. If customers think they have a dormant account they can contact the individual institution if they know it, or search via www.mylostaccount.org.uk. Savers should rest assured that even after the scheme is up and running, they can reclaim their money at any point in the future.”
