This is an uncosted policy, as no thorough work has ever been undertaken as to the full amount held in lost accounts. An initial high-level study undertaken by the Building Societies Association (BSA) estimates that approximately £33 million is held in unclaimed accounts within the building society sector , which is a fraction of the estimated £15 billion which is often quoted by the media and politicians.
In addition, as mutual organisations, the money is collectively used for the benefit of all members of a building society, funding good value mortgages, which currently allow 2.5 million people to purchase their own home. The money is also used to fund on average higher interest rates for savings accounts. These funds are, of course, able to be withdrawn or reclaimed by the individual depositor at any time.
It is not clear whether, under existing legislation, the money could be legally transferred out of a building society to a third party and no cost-benefit analysis of how much this would cost ordinary building society members has been undertaken.
Adrian Coles, Director-General of the BSA, commenting on the proposals said; “At no point have we been consulted by the Conservative Party about this policy. We dispute the figures involved. We also strongly question the right of any organisation, government or otherwise, to take money from building society members. In addition, it is not clear under existing law whether this is even possible. But, most importantly, to promise pensioners compensation on the basis of an uncosted policy proposal is misleading and unfair.”
The BSA runs a free scheme for anyone wishing to trace a dormant building society account. Similar schemes are run by the British Bankers’ Association and National Savings and Investments.
