Dormant Bank and Building Society Accounts Bill [HL]

I am grateful to the noble Lord, Lord Newby. The Government welcome all proposals that are directed toward the aim we share, which is how to reunite the rightful owners with bank accounts that otherwise would become dormant. We strongly believe that customers should retain the rights they already have to reclaim their money, as set out in the first two clauses of the Bill. We want to make sure that account holders experience no practical difference in the way they are treated as a result of the scheme. We discussed earlier how they would apply to banks when making a claim. Substantial efforts have been made in recent weeks by the bank and building society sector. In some respects, it has moved towards the concept of a register. I share the reservations of the noble Lord, Lord Hamilton, and the noble Baroness, Lady Noakes, about the desirability of a register, but the banks and building societies have put together the concept of a one-stop shop for customers who are searching for their lost accounts. It will be launched in January and will include National Savings, the role of which we have debated elsewhere in the Bill. There is already clear evidence for the necessity of more effective action than in the past. In addition, a commitment has been made to proactive searching by individual institutions. Both the Halifax and Nationwide have indicated that they are stepping up their activity in this area. All concepts that are put forward should be treated seriously by the private institutions, because performance in the past has fallen short of what account holders have the right to expect. However, worries have been expressed about a central register—the noble Lord, Lord Hamilton, identified one of them. A central register might be a battleground for those who are interested in fraudulent identity and making fraudulent claims, working out how they could square themselves with accounts on the register. We are anxious about the potential for ID fraud. I know that the noble Lord, Lord Newby, would restrict the information on the register, but we would have to anticipate that demands would be made for the register to be effective and carry sufficient information for individuals to make progress. The right reverend Prelate and the noble Baroness, Lady Finlay, indicated that charities would have difficulty coping with information. The demand would be for the information to be as explicit as possible, which raises issues of its confidentiality. A case has not been made for putting a register in the Bill. However, we recognise that the industry is looking for intelligent and constructive ways to make progress. Concepts are coming forward which the industry may be able to develop. At this moment, we are dealing with legislation. The Government are not persuaded that the disadvantages attendant on a central register do not outweigh the advantages which the noble Lord, Lord Newby, and others identified.