Section 11: Customer’s rights preserved on insolvency etc of bank or building society
63.This section ensures that a dormant account holder is entitled to repayment of the balance (plus interest due and less charges that would have been payable) in full, even if the liability that the customer’s bank or building society would have had if their balance had not been transferred is reduced or cancelled (for example if the bank is wound up and dissolved after the balance has been transferred). However, this does not apply in the case of accounts governed by Scots law where the bank or building society’s liability would have been cancelled as a result of the application of the Prescription and Limitation (Scotland) Act 1973. This Act provides for liability to be extinguished if no relevant claim has been made by an account holder, or no relevant acknowledgement of the debt has been made by a bank or building society, after certain specified periods.
