How will account holders rights to repayment be maintained?
A bank or building society may only transfer dormant account balances (or proportions of balances) to the reclaim fund if the latter consents to the transfer. Once a transfer has been made, the bank or building society’s liability to repay the account holder is extinguished. Instead, the customer has a legally enforceable right to repayment from the reclaim fund. It is anticipated that account holders will be able to continue their usual relationship with their bank or building society which will act as agent of a reclaim fund for the purpose of meeting repayment claims.
