British Banks Wary of Govt Plans to Use Unclaimed Accounts for Charity

Charity News Online

Leading financial institutions in Great Britain voiced concerned over the Commission on Unclaimed Assets’ plans to create a “social investment bank”, that is to be funded with unclaimed accounts, to help finance charitable and voluntary projects.

Several major banks and building society trade bodies said Tuesday they had "an open mind" but also reservations about the plan to use of dormant bank funds for charity, Scotsman reports. A spokesman for the Building Societies Association said: "The latest consultation is a welcome addition to the debate. But we are working with our members to ensure as many people as possible are reunited with their money. We must remember that this money does not belong to the building society, the government or charity. It belongs to individuals."

The British Bankers Association said: "We are open-minded and are looking forward to seeing what reaction the report gets." The BSA said it was important a differentiation was made between purely "dormant accounts", which had just not been used for many years, and savings that were "lost" through death or moving away. One leading bank said: "Only funds that are totally deemed lost, as opposed to dormant, should be included for charitable work."

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