By Chris King • Published: 13 Nov 2021 • 21:53
Treasury can keep money in abandoned Spanish bank accounts. Image: Wikimedia
Many people in Spain have had a bank account open for years, but then they stopped using it, forgot about it, and never cancelled it. In this instance, when you make no attempt to cancel the account, the Treasury can keep the money that you have deposited in that account.
According to article 18 of Law 33/2003 of the State Patrimony, “The General Administration of the State is responsible for the securities, money and other movable property deposited in the General Depository Fund and in credit entities, securities companies or agencies or any other financial entities, as well as the balances of current accounts, books of savings, or other similar instruments open in these establishments, with respect to which no management has been carried out by the interested parties that implies the exercise of their property rights within a period of 20 years”.
Abandoned accounts normally occur when somebody dies, and heirs have no knowledge of the account’s existence. If you are thinking this is probably a rare occurrence, in 2019, according to data, the Ministry of Finance reportedly collected €12.57 million from inactive bank accounts. In 2018 it was €11.13 million, and in 2017, a total of €11.25 million.
Before the State can ever transfer money from an abandoned account, the bank has to first notify the holder of the situation so that he has the opportunity to avoid the transfer taking place. The entity sends the notification by registered mail at least three months in advance of the account turning 20 years old.
Where the balance of the current account exceeds the cost of the registered letter, although the bank is obliged to notify the account holder, the Bank of Spain clarifies that the registered letter will not be sent. If the holder has changed address and not informed the bank, then again they will not know about the letter being sent.
If no response is received by the bank to their registered letter within the stipulated time, an announcement will be published in the Official State Gazette (BOE). This will include a deadline to claim the balance of the account or the ownership of it, in the case of heirs. After that period ends, the State keeps the money.
The Bank of Spain offers this advice to anybody wishing to close an account, “To cancel an account it is not enough to leave the balance at zero, it is necessary to give express instructions, in writing, to your bank, requesting the cancellation”.
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Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at editorial@euroweeklynews.com
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