By David Hanson MP / Latest News / 0 Comments

Bill to Invest Dormant Funds

Delyn MP David Hanson has this week voted for the Dormant Bank and Building Societies Accounts Bill at Second Reading. The Bill allows money in dormant accounts to be reinvested in the community, while preserving the rights of individual consumers

The Big Lottery Fund will be the distributor of funds to good causes. The Welsh Assembly will determine its own priorities for distribution.

The Bill sets up a statutory framework that:

o       defines a dormant account as one where there has been no customer-initiated transaction for 15 years;

o       allows banks and building societies to cancel their liabilities to dormant account holders on certain conditions, including the transfer of assets to the ‘reclaim fund’ – the fund through which money will be passed to good causes; and

o       establishes a new right for consumers to be repaid by the reclaim fund.

David Hanson said:

“These are challenging times for the banking sector, globally and here in the UK.  In light of current market turbulence, banks and building societies are addressing the way they do business.

“This Bill invests for the future, and ensures that genuinely lost money is spent on good causes.  It has the full support of the industry, although it is not compulsory for institutions to participate.

“The proposed legislation enables a dormant accounts scheme. This money will be reinvested into communities whilst protecting consumer’s interests