The mystery of dormant accounts explained …

The mystery of dormant accounts explained …

dormant accounts explained

You’ve probably heard Monimine repeatedly talking about dormant accounts. But what exactly is a dormant account, and can any financial account potentially become dormant?

Natwest deem an account dormant and no longer live, if it has been inactive for five years or more.

Why do banks change accounts to dormant?  

It is a prevention method. If the owner is not seen to be paying attention to the contents of their account, it can become vulnerable to fraud.

What happens when the account becomes dormant?

The bank will attempt to contact the customer, to notify them that their account is being suspended.

So why is there a problem?

Numerous banks will send a singular letter, and if the customer has moved address, they may never receive notification.

Other hiccups

Once a bank has announced an account dormant, it’s removed from central databases. If you then try to ring up the bank and enquire about your account, the call centre staff will be unable to view it on their system.

What happens if the account holder is deceased?

A large number of dormant accounts belong to holders who have passed away. If an inadequate probate administration failed to trace these accounts, it’s very possible that they may never be claimed.

Can family relations not claim the accounts?

If an account continues to be dormant for at least 15 years, the financial contents are passed on to the government’s unclaimed assets scheme. Where the funds are used for charitable causes.

Is the money then lost forever?

The good news is that, even if the money has been passed on to the unclaimed assets scheme, the account holder is still able to reclaim the assets at any time.

Monimine has been established to help deal with the difficulties surrounding dormant accounts. Members of the public are able to conduct a search for any lost assets, which may belong to them or a member of their family, for free. All they are required to do, is to input a short family history, and if a match is found, Monimine can reunite you with any outstanding money which is owed to you.

Find out if you are entitled to any unclaimed funds, for free. 

Josh Cousens – Monimine. 

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