About Dormant Bank Accounts
Below is a MRR and PLR article in category Finance -> subcategory Personal Finance.
Understanding Dormant Bank Accounts
Could You Be Entitled to Unclaimed Money?
It's estimated that up to £5 billion lies unclaimed in dormant UK bank accounts. Could some of this idle wealth be yours?
What Are Dormant Accounts?
A bank account becomes dormant when communication breaks down between a bank and its customer. This often happens when a customer moves without updating their address or passes away.
If there are no transactions for about 12 months, the bank will attempt to contact the account holder. Without a response, the account status changes to 'dormant.' No statements, checks, or correspondence will be sent, though the account continues to accrue interest.
Why Accounts Become Dormant
There are two primary reasons for marking an account as dormant:
1. Reducing Costs: Banks save on administrative costs by not sending unnecessary statements when there is no account activity.
2. Preventing Fraud: By stopping correspondence to outdated addresses, banks reduce the risk of identity theft, preventing sensitive information from falling into the wrong hands.
Claiming Money from Dormant Accounts
Though many dormant accounts hold small balances, some may contain significant sums, often from deceased individuals. If you believe you may have a claim to a dormant account, you can request a form from the bank to initiate the process.
You'll need to explain your claim, such as inheriting the account from a relative. Proof of identity and your relationship to the account holder may be required.
Disputes and Appeals
If the bank denies your claim, you have the right to appeal. Should the appeal be unsuccessful, you can escalate the case to the Financial Ombudsman Service. Their decision is final and binding.
In summary, dormant accounts can sometimes harbor significant sums. Investigating a potential claim could be worthwhile if you suspect connections to such funds.
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