The British Bankers Association defines a dormant account; a bank and a customer have not been in touch with each other anymore. Practically it means that a customer either died or shifted house, and the bank has not been informed. Therefore, the bank is unable to trace the account holder.
If there has been no dealing in an account for a period of a year, the bank will write the account holder at his last recorded address. The bank asks him, if he wants to keep the account open.
If no reply is received, the bank will change the status of account to the ‘sleeper’. This simply means that from now onwards the statements, cheque books or other mail will not be sent to the customer.
However, the balance amount in the account still earn interest at a normal rate and the bank will keep trail the account balance record the last recognized address.
Reasons for Dormant Accounts
On account of two major bases, the account becomes dormant. The foremost and the most apparent is to save the money in terms of issuing the statements and the similar, when there is an activity on the account on monthly basis; It is apart from that taken by the bank, like interest payment.
The other important reason is to protect against individuality burglary.
If a bank continues to send statements to an address when the account holder is not there to receive these, then these documents may go in the hands of deceptive people who may use the insightful details purposes and start a movement for ID stealing.
Balances in the Dormant Accounts
Majority of the dormant accounts have meager balances, but few of these have a sizable amount. This normally belongs to the people who have died. If you feel that you may be eligible to acquire money in dormant account, you can declare it by filling a form available from the bank.
You will have to provide rationale for making a claim, like the account holder was your close relative whose estate has been passed on to you. You will also be required verify your identity as well as your relationship to the original account holder.
If bank don’t concur to your claim then you have to raise an appeal in which your claim is reviewed. If the appeal fails, you can take your claim to an expert in settling the grievances between the consumers and businesses, whose decision will considered as last.