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Banking authorities estimate that as much as 5bn might be sitting unclaimed in UK bank accounts that have gone 'dormant.' What does this mean, and might you be eligible to a share in this large amount of idle money?

A bank account goes dormant when, in the language of the British Bankers' Association, a bank and a person 'lose touch together .' What this usually means used is a client has either passed away or moved house, and the financial institution have not been told and cannot identify the account owner time later.

The bank will produce to the account holder at the last known address to question them if they would like to keep carefully the account open, if you can find no orders on an account over an interval of around 12 months. If no answer is received, then a bank may change the position of the consideration to 'dormant.' This means that from now on, number statements, chequebooks or other correspondance will be sent out to the customer.

The money in the account will still make interest at whatever the standard rate of that account is, and the bank will still keep track of the account balance and keep a record of the last known address of the case.

There are two major causes for an account being made dormant. The first and most obvious one is to save yourself the banks the management costs of if you find number activity on the account from monthly (besides that begun by the bank it self, such as for example interest payments) giving out statements and the like.

The more important reason however is always to guard against identity fraud. If a proceeds to send statements to an address once the account owner isn't any longer there to get them, it's all too simple for these files to result in the hands of scammers, who can use the sensitive information they contain to start a of ID theft.

Many dormant records will have really small amounts, but a substantial sum will be inevitably contained by some, frequently those owned by someone who has passed on. A claim can be made by you by filling in a questionnaire available from the bank under consideration, if you think you may be eligible for money placed in a account.

You will need to give your known reasons for creating a claim, such as that the account belonged to a close relative whose estate was passed to you. You'll also need certainly to show your own identity, and your link with the first consideration holder if applicable.

If the lender do not agree totally that you are eligible for dominate the account, you have the right to pursue an, where your claim is re-examined. Your claim can be taken by you to the Financial Ombudsman Service, whose determination is binding and final, if the appeal fails. alliance and leicester mortgage ppi claims