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Dormant Bank and Building Society Accounts Bill [HL]

Clause 10 sets out the minimum conditions that an account must meet to be regarded as dormant. No-mail accounts and fixed-term accounts which have not reached their maturity date are excluded from the definition. That is because the aim is to cover accounts that are genuinely dormant. It is difficult to know whether in those two instances customers have forgotten about their accounts or not. Amendment No. 37 would exclude accounts where, on request, the only post the account holders received from their bank or building society were yearly or half-yearly statements. It would seem, therefore, that he is content for the bank or building society to contact account holders. If that is the case, unlike no-mail accounts, which are excluded, institutions would be able to use their usual processes to contact the account holder to establish dormancy. Therefore, the amendment is unnecessary. The current definition excludes fixed-term accounts, not to be used on a regular basis, and no-mail accounts where it can be difficult for an institution to establish dormancy. But those two exclusions are self-evidently sensible. I do not think that we need to be excessively concerned about circumstances in which the customer has established an arrangement with the bank which, as far as the bank is concerned, is a continuing and live relationship, and within this framework straightforward for the institution to stay in contact with the account holder. Of course we could tighten things up by increasing the exclusions. However, with this Bill we are seeking to apply the lightest possible touch to a scheme which, I emphasise, is voluntary, and, at the same time, ensure that customers’ interests are safeguarded, which is the noble Lord’s concern. I therefore do not believe that his amendment is necessary, although I recognise the motives behind it.