Santander - closing Cash ISAs with low balances/inactivity and transferring funds to charity.

Swattie

I have just had an email from Santander informing me that in 30 days they will be closing my Cash ISA (low balance and no activity for a couple of years) and the funds will be transferred to Santander's chosen charity.
As I have an active current account, credit card and savings account, all linked, I'm annoyed that they don't propose to transfer the funds into my current account. It's a bit of a cheek!
I do have the option to go into a branch and stop the account closing.
Rant over.

eskbanker

I take your point about expecting them to consider this at a customer level rather than an account level, but is what they're proposing in accordance with the dormancy provisions in their general Ts & Cs?

30. Dormant accounts

30.1 If you do not make any transactions on your account for one year in the case of current accounts and three years in the case of savings accounts then we may treat your account as being dormant to remove the risk of fraudulent activity. This means that we will stop sending you statements, letters and cards.

To make your account active again, you will have to go into one of our branches and show personal identification such as a passport or driving licence. If you are unable to visit us in a branch, please call us on 0800 587 3344 for further advice.

30.2 We participate in the unclaimed assets scheme established under the Dormant Bank and Building Society Accounts Act 2008. The purpose of the scheme is to enable money in dormant accounts (i.e. balances in accounts that have been inactive or dormant for 15 years or more) to be distributed for the benefit of the community while protecting the rights of customers to reclaim their money.

Under the scheme, we may transfer balances of dormant accounts to Reclaim Fund Limited (RFL). RFL is a not-for-profit reclaim fund which is authorised and regulated by the Financial Conduct Authority.

If we transfer the balance of your account to RFL, you will have against RFL whatever right to payment of your balance you would have had against us if the transfer had never happened. However, we will remain responsible for managing all aspects of the customer relationship with you and for handling all repayment claims (which we will do on behalf of RFL). Therefore, you should continue to contact us in the usual way if you have any queries or complaints in relation to your account or balance.

Both we and RFL participate in the Financial Services Compensation Scheme (FSCS). The transfer by us to RFL of your balance will not adversely affect any entitlement you have to compensation from the FSCS.

Swattie

eskbanker wrote: »

I take your point about expecting them to consider this at a customer level rather than an account level, but is what they're proposing in accordance with the dormancy provisions in their general Ts & Cs?

I understand that its in their Ts&Cs, but it doesn't make it right, it just makes it convenient for the bank.
If I have an active linked current account, then that should be the default recipient of funds transferred from closing accounts.

I have sorted it out on-line.

IanManc

Swattie wrote: »

I understand that its in their Ts&Cs, but it doesn't make it right, it just makes it convenient for the bank.
If I have an active linked current account, then that should be the default recipient of funds transferred from closing accounts.

I have sorted it out on-line.

They have told you that the account is going to go dormant, told you what the default result of that is, and given you plenty of time to arrange a different outcome.

The bank hasn't done anything wrong.

londoninvestor

eskbanker wrote: »

I take your point about expecting them to consider this at a customer level rather than an account level, but is what they're proposing in accordance with the dormancy provisions in their general Ts & Cs?

And to summarise the T&Cs, they can only give it to charity after 15 years of inactivity.