Lost Accounts

The BSA's Scheme

Building societies take the issue of tracing the owners of lost accounts very seriously.  The BSA runs a free account-tracing scheme, in which all 59 UK societies participate.  

For web-based tracing, the BSA has joined forces with the British Bankers' Association (BBA) and National Savings and Investments (NS&I) to offer a joint service - mylostaccount.org.uk - that brings together the three tracing schemes of BBA, BSA and NS&I into a single website.  This means that anyone with a dormant or lost account with a building society, bank or NS&I - or all three - can start a search simply by visiting mylostaccount.org.uk and completing only one application form.

Alternatively, a leaflet explaining the building society scheme, including a form to trace an account, can be downloaded from the BSA website (see link below) or requested via the BSA Consumer Line on 020 7520 5900. Customers can also pick up a leaflet at their local building society branch.

Lost Savings? How Building Societies help you find your lost savings

Background

There is approximately £130million of 'lost' money in building societies.  This assumes a definition of dormancy of 15 years or more of no customer-initiated activity.

The policy agenda around lost accounts has slowly gathered pace since 2004, when the Chancellor first mooted his view that money in lost accounts should be reinvested in society, as long as the original owners entitlements to reclaim were preserved.  He also asked the industry to increase its efforts to reunite lost account holders with their money. 

More formal plans were announced the in 2005 Pre-Budget Report, where the Chancellor named his chosen charitable causes as youth services, financial education and exclusion.  The Conservative Party have in the past called for the money to be used to compensate failed pension schemes and the Commission on Unclaimed Assets has requested the money be used to help set up the Social Investment Bank - it looks as though the latter will benefit to some degree from the Unclaimed Assets Scheme.  The Unclaimed Assets Scheme is like to come into force mid-2009.

The Dormant Bank and Building Society Accounts Bill is currently before Parliament.  The key elements of the Bill include:

• The scheme being voluntary
• A 15 year definition of dormancy
• Safeguarding customers right to their money
• Retaining membership rights for building society members
• Distribution via the Big Lottery Fund through a central reclaim fund
• Special arrangements for smaller, locally-based financial institutions.