Association supports government plan regarding unclaimed assets

The government in the UK has recently proposed an initiative in relation to unclaimed banking assets, and the British Banker’s Association has confirmed that the banking industry is backing this initiative.

The banking industry has been finalising technical details relating to the initiative with the cooperation of the government, and consumers are being given priority so that they can reclaim their money whenever they want to.
The Chief Executive of the BBA, Angela Knight, stated: ‘The banking industry has been in a detailed discussion with the Government since the 2005 Pre-Budget Report on the introduction of an unclaimed assets scheme for bank and building society accounts with the aim of getting the technical detail right on their initiative.

All along our priority has been the protection of the right of customers to reclaim their monies at any time.  A key element of the approach proposed within the consultation paper therefore is that even after the transfer of their ‘unclaimed assets’ individuals will retain the right to reclaim their monies via their bank or building society as at present.’

According to the BBA banks will continue to effectively deal with customers to minimize on the number of claims that have to be moved over to a central account and to minimise on inconvenience. The regulations mean that any unclaimed assets will them be moved into a central fund after fifteen years if no claim has been made.

At present there are hundreds of millions of pounds in UK banks that remains unclaimed, and it is thought that every year tens of millions more may be left unclaimed. Authorities also plan a consultation later this year to decide upon distribution of unclaimed funds.

Tom Smith
25th April 2007

Tags: government plan, building society accounts, initiative, approach, United Kingdom, inconvenience, Angela Knight, priority

Happy birthday Banking Code

Today (March 16th) marks the 15th anniversary of the UK Banking Code.

The code is voluntary but sets out the standards for good banking practice which financial institutions should use as guidelines when dealing with customers.

Once a financial institution has subscribed to the code its compliance with what is set out in it is monitored by the Banking Code Standards Board and the code itself is monitored by regulators and consumer groups to ensure that it is up to date and fair.

This regulation, says the British Bankers’ Association (BBA), is what makes the code so strong.

“Whether they’re saving or borrowing, customers deserve a fair, transparent and responsible service,” said Angela Knight from the BBA.

“As one of the three trade associations sponsoring the Banking Code we are proud to be celebrating its 15th birthday.

“The members of our three trade associations include banks, building societies and credit card issuers so we see the issues that are affecting our customers and we see how the industry responds. The Banking Code gives us a way of setting real obligations and real benefits for customers,” she added.

The code, which is jointly owned by the BBA, the Building Societies Association and Apacs, the UK payments association, is formally reviewed every three years.

Tags: date, finance, british bankers association, anniversary, Angela Knight, investment, Economy of the United Kingdom