Martyn Jones

Labour Party | Clwyd South

Banks feel the heat, as MPs step up the pressure over dormant accounts

A senior Labour MP has reached a landmark stage in his campaign to force banks and building societies to address the issue of dormant or orphan accounts.

MARTYN JONES MP (Clwyd South), who has spearheaded the campaign, recently tabled an Early Day Motion (EDM) in the House of Commons on dormant accounts held by banks and building societies, and now nearly TWO HUNDRED Members of Parliament have signed-up to his call - a quarter of all MPs.

Currently, banks and building societies utilise dormant money exclusively for their own benefit. There is no incentive for them to unite dormant money with the rightful owner.

Estimates as to the amount of money currently residing in dormant accounts in the UK, range from £15 billion to £40 billion pounds. Some in the financial services industry estimate the figure to be as high as £80 billion.

However, the true amount of money lying in dormant accounts remains unknown.

Martyn Jones MP wants the UK to adopt legislation similar to that enacted in other countries, so that charities and community groups across the UK could benefit from a multi-billion pound 'windfall', whilst not prejudicing the legitimate rights of the owners of the money.

Martyn believes that situation, relating to the huge amounts of assets that reside in such accounts in the UK, is becoming scandalous and he wants the Government to follow the example of other countries such as Ireland, and introduce legislation.

In his latest Early Day Motion (EDM), MARTYN JONES accuses some banks of using: "...dormant money from customers' accounts to boost company profits without public disclosure" and  "condemns this practice and calls on banks to cease this form of accounting immediately."

Commenting on his EDM, MARTYN JONES said:

"So far a quarter of all MPs in the House of Commons have signed-up to my motion. There is a growing feeling that the banks and building societies can no longer go on with their cavalier approach to dormant money.

"They are giving themselves a blank cheque to do as little as possible to find the rightful owners of dormant money, while they sit on billions of pounds worth of dormant money, reaping the rewards for themselves. Some banks have the gall not to disclose this practice publicly.

"Given that in the last few months, we have seen some banks record massive profits, it has brought such accounting practices under even closer scrutiny.

"My EDM endorses the Chancellor's action in the recent Budget, in recognising that where assets and owners cannot be reunited, it is right that the money be reinvested in society for the wider good.

"I want the Government to follow the example of other countries - most notably Ireland - in taking a radical new approach towards dormant accounts.

"The clock is now ticking on the financial institutions to get their house on order over this. If they choose to ignore the Chancellor, I hope he will legislate to bring about change on this scandalous situation."