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Original poster

Dormant Account

9 replies

Mrsorganmorgan · 14/04/2021 15:22

Is it illegal to transfer money from a bank account, which they say is dormant, to the Treasury without informing the account holder?

OP posts:
countrygirl99 · 14/04/2021 15:26

No. It's compulsory. But if the account is reactivated the money is put back in.

Ffsffsffsffsffs · 14/04/2021 15:33

Believe me, they would have tried to contact the account holder. Many times.

There used to be a limit as to how long an account was 'inactive' for before being declared dormant (and the account being the only one held by that customer, so no other connections), plus if mail is returned if a/c holder has moved for example.

What is the circumstance in your case OP?

(Oh, and yes, it can be reactivated if you can bring proof of ID etc)

Original poster
Mrsorganmorgan · 14/04/2021 15:51

Thank you very much for the replies.
My husband had a stroke 5 years ago. 3 years ago the bank decided to make his account dormant and did not inform him nor his accountant.
It is not a small amount of money £5K. I have a complaint against the Treasury who insist on documents sent electronically. What about people who don't have PCs? (I am handling this because my husband can't speak at all and has other cognitive issues) now and I hope they will reimburse me. I don't know what to say about the bank, but I think they were very quick off the mark.

OP posts:
countrygirl99 · 14/04/2021 15:58

The bank wouldn't have had an option. There is a set process that is legally defined. If an account hasn't had transactions for a set period of a time the bank is obliged to pay the money to the Treasury. But it can be reclaimed, it's not lost if the account holder or his representative turn up.

Original poster
Mrsorganmorgan · 14/04/2021 16:15

Having read the Law on this, apparently it was a 15 year gap when the account was not used, and it has to be agreed with the Treasury Minister. What a lot of fuss.

Anyway, I have made an official complaint against the Treasury, but since the Covid restrictions, they only work from 10.00 a.m unitil 3.00 p.m. so I think it will take a while. I have sent them (by email) copies of the letters from the bank advising me to go to the Treasury, and a copy of my LPA.

Thank you all very much, indeed for answering me, I was not expecting it at all.

OP posts:
Zarinea · 14/04/2021 16:59

Have you asked the bank for the money back? It should be easy to get, and if not you need to complain to them not the Treasury.

They money will have gone into something called the Dormant Assets Fund, which is a very sensible scheme. All the money in there is returnable if an owner is found.

Original poster
Mrsorganmorgan · 14/04/2021 17:16

I have not asked the bank for the money back, they told me to go to the Treasury. The owner of the account is my husband and me as I have been made director of the company, because I have to sign stuff.
Is it illegal though, for the bank to not inform us or our accountants?

OP posts:
Original poster
Mrsorganmorgan · 14/04/2021 18:38

I have just asked the person who emailed me from the bank to check if any correspondence relating to the dormant account. ie. did they tell us.?

OP posts:
Original poster
Mrsorganmorgan · 14/04/2021 19:18

Thank you everyone for the information and advice

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