Halifax and Reclaim Funds Ltd

Baggiestan

Hi
Just after some advice,my dad who is now 85 years opened a bank account approx 20 years ago and put a few thousand pound into which was to cover the costs of funerals for my parents (thankfully not had to use yet),since putting the intial amount in he has not put any other money into this account and neither has he taken any out.
At the end of September 2019 he received a letter from the Halifax informing him that 3 years ago the Halifax had closed this account and had given his money to Reclaim Funds Ltd which i believe is a goverment initiative for dormant bank accounts.
As you can imagine the distress caused to my elderly parents believing they had lost this money and it was only when they showed me the letter after a few days that i was able to take him to his local branch and they started the ball rolling in getting his money back.
My argument with the Halifax apart from the distress is that this account never earned any interest so i believe it was not a suitable account in the 1st place and why should he have to reclaim it back in the 1st place when it was the bank's mistake.
He has phoned me this morning to say that the halifax have sent him a letter with a cheque for £400 which i believe must be compensation.
If interest had been paid on the intial amount that alone would around the £1500 mark so should we reject the offer.

Sorry if it is long winded
Regards

[Deleted User]

I don't quite follow why it's the bank's mistake, but having said that I would ascertain the meaning of the £400 cheque before cashing it.

Baggiestan

It's the banks mistake because they closed the account 3 years ago without notifying my parents and only decided to tell them last week,they made no attempt when they were closing the account to contact my parents so i don't see how it could anybody else's mistake.

colsten

• it would have been your father's decision to put, and leave, the money in an account that paid no interest
  
  
• The Dormant Bank and Building Societies Act 2008 legislates that accounts with no activity for 15 or more years are deemed dormant. You could look up that Act to see whether there are notification rules that Halifax breached.
  
  
• the £400 is probably an apology for having, once the account had met dormancy rules, closed the account w/o trying to contact the account holder. If this is indeed the purpose of the £400, it seems very generous.

born_again

Baggiestan wrote: »

My argument with the Halifax apart from the distress is that this account never earned any interest so i believe it was not a suitable account in the 1st place and why should he have to reclaim it back in the 1st place when it was the bank's mistake.

Well you would have to prove that he had a conversation with them, about just what the money in the account was for.

He

Baggiestan wrote: »

has phoned me this morning to say that the halifax have sent him a letter with a cheque for £400 which i believe must be compensation.
If interest had been paid on the intial amount that alone would around the £1500 mark so should we reject the offer.

I would want to know just what the £400 was for, before taking any further action.

Have they moved in the last 23 years? Received any other mail in relation to this account?

jonesMUFCforever

The above post answers most of what I was going to answer.
I guarantee that the bank would have sent many letters over the years asking whether this account was still required. No bank just closes a dormant account without trying to contact their customers.

eskbanker

Baggiestan wrote: »

Halifax had closed this account and had given his money to Reclaim Funds Ltd which i believe is a goverment initiative for dormant bank accounts.

[...]

why should he have to reclaim it back in the 1st place when it was the bank's mistake.

He doesn't, Halifax will, as per https://www.halifax.co.uk/savings/help-guidance/dormancy/:

If we transfer the balance of your account to RFL, you will have against RFL whatever right to payment of your balance as 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.

Baggiestan

I take it banks never make mistakes then, I can assure you that my dad never had anything from the the Halifax asking him if the account was still required and in answer to another response on here they have lived in the same house for over 50 years.

worried_jim

So the money is on the way back with a tasty £400 uplift- not bad on an account that pays no interest!

Baggiestan

The £400 is compensation for the Halifax not following procedures and the stress to my parents nothing to do with interest!

worried_jim

Baggiestan wrote: »

The £400 is compensation for the Halifax not following procedures and the stress to my parents nothing to do with interest!

So they are £400 better off then they would be, not bad for zero days work.