You are here: Home - Saving & Banking - News -

HSBC reaches out to dormant account customers

Written by:

HSBC is writing to more than 12,000 customers as part of its campaign to reunite them with millions of pounds in forgotten current and savings accounts.

The 12,000 customers have accounts that have not been used for more than 15 years. HSBC will also be actively trying to trace a further 5,000 customers with similar accounts but who no longer live at the last addresses the bank has on record for them. In total, these 17,000 customers could reclaim more than £24m.

HSBC’s campaign is part of a Government initiative to reunite people with their lost or forgotten cash. Under government regulations coming into effect next year, accounts that have not been used for 15 years will be classified as forgotten accounts. Money in these accounts will then be transferred to a Government fund and used to finance a range of programmes. The money will however always remain the property of the customers who, should they get back in touch with their bank, will still be able to reclaim their money at any time.

In addition, over the coming months, HSBC will seek to contact all customers with accounts that have not been used for more than two years. If these customers do not re-activate their accounts, they are potentially ‘at risk’ of having their savings transferred to the Government scheme.

Carlos Wanderley, general manager of HSBC customer propositions, said: “We are planning a sustained campaign of correspondence, active tracing, advertising and publicity. We will also be conducting research into the primary causes of account dormancy, which we hope will allow us – and the industry – to model accounts that are most likely to become dormant in future.”

Of the 17,000 accounts not used for 15 years or more, just 276 of them account for about 40% of the dormant account balances (£9m). Indeed, 17 accounts have balances of more than £100,000. The average amount in 15 year + dormant current and savings accounts is £1,400.

Wanderley added: “It is quite possible that some owners of these funds are well aware it is there as some people do leave their money untouched for long periods. Obviously we’re happy to hold it for them for as long as they like, but we would like to hear from them so that we can ensure that it is working effectively for them.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
24 million Brits admit to reckless driving

A whopping 24 million British motorists admit to having dangerous driving habits, according to comparison site Confused.