Source: National Consumer Association
With the Chancellor of the Exchequer next week expected to announce plans to harness around £1bn lying dormant in the nation«s bank and building society accounts, the National Consumer Council (NCC) today warns that the new scheme must be buttressed with robust consumer protection and also measures to maintain public confidence in the safety and security of the banking system.
NCC says there must be a money-back guarantee for people whose unclaimed assets are harnessed under the plan. And banks and building societies must do more to re-unite consumers with their money before it gets branded Ádormant«. NCC also wants dormant account cash to be used to tackle poverty and promote social justice ¯ by funding the Financial Services Authority«s financial capability strategy. This aims to deliver better financial skills for everyone.
Key consumer safeguards for a credible scheme NCC has identified include:
re-uniting them with their cash ¯ currently consumers have to track down accounts themselves |
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a similar scheme judges 15 years« inactivity as Ádormant« |
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Nicola O«Reilly, NCC policy officer, explains:
"It«s a really good idea to release the money in genuinely dormant accounts and put it to work for the benefit of society. But it is essential that in pursuing its goal, the government recognises and allays public fears about the ownership and security of their money. It is vital that people can reclaim their money at any time ¯ including any interest due. And there must be a public information campaign so people know how to track down unused accounts, how dormant funds will be used and what it will mean for owners."