Government to seize cash from unused private bank accounts

[naomi24]

Is this right - or is it theft?

http://business.timesonline.co.uk/tol/business /money/savings/article1542957.ece

[ludwig]

On the face of it taking money that doesn't belong to you without the owners consent would seem like theft.

[jake-the-peg]

Most of this money is "lost".

Typically someone dies and the relatives don't know about a savings account, it doesn't get claimed or go through the inheritance process.

It would simply sit in the building societies coffers for ever.

And lets not forget it's not funding government luches here.

This is money going to charity

[ruby27]

To me this seems like a good idea. At present the unclaimed money is doing little good apart from the banks/building society who has the use of it. So this way it gets used for the good of the public - through charitable organisations but if the owner of the money remembers that 15 years ago they opened an account they can claim it back. I mean if you have 'forgot' you had an account 20 years ago you can not be too hard up and desperate can you?
If the savers are not happy, go and reclaim the account

[Booldawg]

Its going to charity lunches instead.

[ludwig]

Jake/Ruby - I understand your points. But think about this, you may have stuff lying in boxes in your attic that you haven't touched for 15 years and can't even remember what it is.
That doesn't give the government the right to raid your house and take that stuff from you because 'You're obviously not interested in it and we can put it to good use'.

[jake-the-peg]

....and you can have it back if you decide you needed it?

Sounds great - I'll hold the ladder for them

[MrBen5]

Hmmm, i think the banks should do everything they can to trace the owners first before letting the monies be 'taken'.
I am all for it going to charities, as long as they are reputable ones (cancer,children in need, medical research,etc) and they are based in this country...

[ludwig]

Ok Jake, I'm happy to admit I didn't read that far down the article - stil feel uneasy about it though.

[ruby27]

I am off to work now, but I will leave the loft hatch open and a note asking them to clean out some of my cupboards as well - I have been meaning to have a good spring clean for years but have been too interested in doing other things.

[ludwig]

That's very of generous you Ruby - presumably you wouldn't like them clearing the place out out without your permission though?

[NJOK]

I've read this article twice and I genuinely don't understand why people have a problem with this.

Every year, when banks and buildings societies reveal their financial results, people wail about the obscene profits they're making. And yet here's an opportunity to put the money to charitable use instead.

And here's the killer bit. If you suddenly remember you have an account sitting around that you've not gone near for a decade and a half (and you've not lost your mind), you can go and claim it back.

Two points to remember:

1) When you put your money in a bank, it doesn't sit there, waiting for you, all cosy and nice. It's used by the bank, invested, re-invested, exchanged for foreign currencies, and worked every second of every day to make profits for the bank. So, given that, under the government's plan, you can access you money after 15 years anyway, why would you want it to keep shareholders on foie gras when it could be used to teach a disabled child to walk?

2) The banks aren't trying to relocate these customers to be nice to them. They want their customers to reactivate these accounts so that they can use the money for profit. See point 1.

So yes, just like theft. It's like someone stealing your antiques and then a generation later, when you dozily realise they've gone, you make a phone call and they're brought back to you in mint condition, having gained value. Boo hoo.

[China Doll]

Erm....

I can't see the problem.

So yeah, I guess it's fine with me.

I paid about �1000 too much in tax ten years ago when I was being emergency taxed in a new job. I'd rather know how I go about getting that back!

[netibiza]

Oh dear - I only use mine once a year, will they take that?

[ludwig]

Well, all I can say is John Prescott had better watch out - they'll be after his brain. He's obviously not used it for 15 years. Should make a few bob at a car boot.

[monkeyeyes]

You mean our bank accounts are actually 'Private' !?! I think that you are labouring under a misapprehension, there, naomi24 !!

[naomi24]

monkeyeyes, oh yes! Thanks for pointing that out. Silly me!