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If you have an bank account that hasn't been used for 3 years the bank closes the account and passes the funds on to the Gov. The bank dosn't have to notify you. It happened t me and the only way I found out was a from a firm asking for a fee to tell me here the funds were. BE WARNED
Nothing unusual in that as they are following a law that is there to protect you and your money and has been in existence for as long as I've known it.
Way back in 1962, when I first started working in a bank, one of my first jobs was to check for any savings account that was dormant and see if we had any contact from such customer. If not it was transferred to the government who from that point on acts as trustee and for the funds and will return the funds when claimed by the legal owner.
Also applies, not only to banks but, to everyone that holds unclaimed moneys. The government has a website listing all these moneys, I think that now it's administered by the ATO, and claiming the money is easy.
Peter.
We have several bank accounts, as well as some super accounts, that to all intents and purposes are "dormant", ie from one year to the next we have no activity (other than accrued interest) on these accounts.
Without exception the operators of these accounts contacted us during the course of 2013 and advised us that unless there was some activity that they would be obliged under law to transfer these to a Govt controlled entity.
In some cases, the super accounts, all we had to do was fill in a form, inothers, the bank accounts, all we had to do was deposit or withdraw a nominal sum.
Painless and quick.
I believe they do have to let you know but only to your last known address. I was once a treasurer of a professional society that wound up due to lack of interest and it still had some money in bank account. Although I was not the last elected treasurer my name and address was the last one the bank had and they wrote to me at least half a dozen times to tell me the account was going to be closed.
My understanding is that a "dormant account" was no activity for 7 years, this has now been reduced to 3 years. And from experience you would not believe how much in $ terms are in dormant accounts where no one make a claim.:o
This was changed in December 2012 from 7 years to 3 years and now the Commonwealth will pay interest on the amount if it was in an interest earning account.Quote:
Originally Posted by Mulgabill
Peter.