Putting slumbering savings accounts to good use

Assembly permission has been sought to have Northern Ireland included in Westminster legislation aimed at releasing millions of pounds from inactive savings accounts.

Speaking in support of the Legislative Consent Motion today, Finance Minister, Rt Hon Peter Robinson MP, MLA said that the Dormant Bank & Building Society Accounts Bill is a commonsense measure which will release considerable funds back into society:

“Central Government has been examining the issue of ‘dormant bank accounts’ for some time. The problem of what to do with sums of money to which no-one was advancing any claim and which were increasing annually with interest, required lengthy consideration.

“The Unclaimed Assets/Dormant Accounts Scheme was first announced in the Chancellor’s 2005 Pre-Budget Report, followed by two public consultations which took place this year.

“As a result of discussions with the banking industry, a voluntary scheme has been designed which will allow funds from inactive accounts to be ploughed back into society. Northern Ireland will benefit alongside the other UK regions on a population share basis, the money becoming available in 2009.

“Importantly, this cash-releasing mechanism comes with appropriate safeguards to ensure that customers will still be able to reclaim their forgotten assets at any time.”

The Minister said that the amount of money involved is estimated at several hundred million pounds for the UK as a whole, with tens of millions of pounds accruing annually thereafter.

Banks will be launching a comprehensive re-uniting exercise ahead of the scheme’s introduction to minimise the number of reclaims once the legislation has come into effect.

Notes to Editors:

1. The Dormant Bank & Building Accounts Bill is due to be introduced in the House of Commons this month.
2. NI Assembly consent is required for the inclusion of Northern Ireland in the Bill as it contains provisions conferring new executive functions on the Department of Finance & Personnel (DFP) ie: the power to distribute here the unclaimed assets of dormant bank and building society accounts.
3. A dormant account is one where there has been no customer-related activity for at least 15 years.
4. The scheme is voluntary, relying to a large extent on the goodwill of the banks and building societies. It will allow smaller institutions the option of transferring unclaimed assets to one or more charities in their local communities, or to charities that have special connections with them.
5. Banks and building societies may transfer the remaining unclaimed assets to a central Reclaim Fund. This fund will be independent of Government and of the distribution mechanism.
6. Assets not needed to meet the reclaim risk or to meet reasonable running costs will be released for distribution as required.
7. Media enquiries only to DFP Press Office on 028 9052 7644 or 028 9052 27375. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.