HC Deb 21 July 1981 vol 9 c89W
Mr. Robert Edwards

asked the Chancellor of the Exchequer if information is available in connection with unclaimed deposit accounts in the banks, including trustee savings banks and merchant banks; and what changes in the law would be necessary to make such sums available for investment purposes, particularly for development in the inner urban areas.

Mr. Lawson

No information is available about the number and amount of unclaimed deposits which are held with the banks. The funds represented by these deposits are not lying idle but are being employed by the banks for such purposes as lending to industry while the legal right to the deposit remains with the depositor. Legislation which deprived a depositor of his deposit for whatever reason would amount to expropriation, and would be unacceptable to the institutions concerned, to depositors, and to the Government alike.

Mr. Robert Edwards

asked the Chancellor of the Exchequer what information is available in connection with unclaimed deposit accounts and share accounts in the building societies; and what changes in the law would be necessary to make such sums available for investment purposes, particularly for development in the inner urban areas.

Mr. Lawson

No comprehensive information is available. It is not, however, unusual for investors in building societies to leave their accounts lying dormant for a long time and then establish a valid claim to such accounts. The underlying moneys from any unclaimed deposits are in fact not lying idle but are being used by the society for example for the purpose of mortgage lending, while the legal right to the investment remains with the investor. Legislation which deprived a depositor of his deposit or a shareholder of his share in a society for whatever reason, would amount to expropriation and would be unacceptable to the society concerned, to depositors or shareholders, and to the Government alike.