HomeView 2015 Media ReleasesCOBA welcomes Abbott Government decision on unclaimed money

COBA welcomes the Government’s decision to restore to seven years the time banking accounts can be inactive before they are transferred to the government.

COBA welcomes the Government’s decision to restore to seven years the time banking accounts can be inactive before they are transferred to the government.

“The move to return to a seven year period from the current three years is a good outcome for consumers,” said COBA CEO Mark Degotardi.

“The previous government’s decision to shorten the period had the unfortunate effect of increasing the risk of funds that are not genuinely unclaimed being transferred to the government, with the account holder then required to take steps to reclaim the funds.

“We also welcome the decision to permanently exclude children’s accounts from the unclaimed money scheme, recognising that periods of inactivity can often be higher for these types of accounts.

“Reducing the number of accounts transferred to the government unnecessarily means less frustration for consumers and less red tape for banking institutions.

“The decision means that banking institutions will have to make another round of system changes but we appreciate the significant amount of lead time provided for implementation.

“The government’s decision will implement Recommendation 41 of the Financial System Inquiry (FSI). COBA is a strong supporter of the FSI’s regulatory reform blueprint and we are pleased to see this first instalment delivered so promptly.

“The FSI blueprint is designed to deliver a fairer and more consumer-friendly financial system, with greater competition and choice.”

For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication

02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Customer Owned Banking Association is the industry body for credit unions, building societies, mutual banks and friendly societies.  See coba3.nexusone.com.au

Media Release91.56 KB

284x148_man.jpg

Media Contacts

Mick Gibb
Corporate Affairs Manager
P: +61 2 8035 8444
M: +61 423 149 494
Email Mickcontact-arrow

COBA Alerts

To receive notifications about our latest Media Releases, Submissions and other news sent straight to your inbox, subscribe to COBA Alerts.