Lloyds TSB starts tracing owners of 'dormant' £69m

Lloyds TSB starts tracing owners of 'dormant' £69m

Britain's banks may be in the grip of a credit crunch, but Lloyds TSB is launching a drive to reunite thousands of customers with £69m in forgotten accounts.

The bank has enlisted a specialist search agency to track down people with "dormant" accounts that have been inactive for 15 years or more. One in 10 people who get a knock on the door can expect to receive a windfall of at least £1,000.

The money is sitting in more than 120,000 Lloyds TSB and Cheltenham & Gloucester accounts.

Banks have been spurred into action after the government highlighted the issue of dormant accounts and outlined plans to use unclaimed money to fund youth centres and other projects. Halifax launched a similar initiative last year.

Ministers have proposed the money in forgotten accounts be transferred to a central fund, with account holders retaining the right to reclaim their money, and legislation is going through the House of Commons.

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"Our aim is to reunite as many customers as possible with their cash. As customers change address, open multiple accounts and their circumstances change, despite our best efforts to keep in touch it's surprisingly easy for them to lose track," said Helen Weir, group executive director of UK retail banking at Lloyds TSB.

The bank has appointed Tracesmart to track down customers.

Once the address is confirmed, the bank will write to individuals asking them to visit any branch to identify themselves and claim their funds.

However, the bank cannot be accused of missing a sales opportunity.

"Customers can also benefit from a free consultation with a Lloyds TSB financial adviser to discuss how to make the most of their new-found windfall," it said.

guardian.co.uk © Guardian Newspapers Limited 2008