MPs back compulsory assets seizure
Banks should be forced to donate money in unclaimed bank accounts towards good causes, MPs have said.
A Commons committee has supported government plans to use money in dormant bank accounts to fund projects such as youth centres.
But the Treasury committee predicted banks would be unwilling to take part unless they were forced to do so.
Committee chairman John McFall said: “If the UK continues along the road of a voluntary scheme, we will be out of step with every other comparable country.
“A voluntary unclaimed assets scheme won’t work – banks should be compelled to participate.
“This scheme is not in the banks’ interests, so they must not be given the opportunity to duck out of it.”
But the committee also called on the government to release savings left unclaimed in its own accounts.
By including accounts held with the National Savings and Investments (NS&I), the scheme could release a further £500 million, MPs said.
“It is only fair that – if the government imposes a scheme on the banking industry – it should practice what it preaches and hand over these assets for spending on good causes,” Mr McFall continued.
The government has so far resisted calls to use unclaimed assets in NS&I accounts as these can be used to reduce the national debt.
In today’s report, the Treasury committee also recommended lowering the threshold for unclaimed assets, allowing the government to access accounts which have been dormant for ten years.
The current rules say accounts must be untouched for 15 years. This makes between £250 million and £350 million available in bank accounts and a further £150 million from building societies.
The British Bankers Association (BBA) said it would work closely with the government to make the unclaimed assets scheme a success.
Angela Knight, chief executive of the BBA., said: “As the committee acknowledges, we are already making significant efforts to reunite customers with funds in dormant accounts.”
