Part 1Transfer of balances in dormant accounts
The general scheme
1Transfer of balances to reclaim fund
1
This section applies where—
a
a bank or building society transfers to an authorised reclaim fund the balance of a dormant account that a person (“the customer”) holds with it, and
b
the reclaim fund consents to the transfer.
2
After the transfer—
a
the customer no longer has any right against the bank or building society to payment of the balance, but
b
the customer has against the reclaim fund whatever right to payment of the balance the customer would have against the bank or building society if the transfer had not happened.
3
The reference in subsection (1) to an account that a person holds is to be read as including an account held by a deceased individual immediately before his or her death.
In such a case, a reference in subsection (2) to the customer is to be read as a reference to the person to whom the right to payment of the balance has passed.