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NS&I to begin contacting victims of lost funds scandal

NS&I to begin contacting victims of lost funds scandal

Summary

National Savings and Investments (NS&I) will soon contact people affected by a mistake that delayed payments from deceased relatives’ accounts. NS&I plans to pay the full money owed, plus interest, to around 34,000 estates by mid-next year.

Key Facts

  • About 34,000 estates were affected, with a total of £476 million in unreturned funds.
  • The problem happened because NS&I failed to identify all savings products belonging to customers who died.
  • NS&I will contact people holding accounts with £10 or more and start payments soon.
  • Payments will include interest, either at the Bank of England base rate plus 1% or the interest NS&I failed to pay, whichever is higher.
  • The money repaid will not be taxed as inheritance or income.
  • NS&I will offer details for claiming legal costs caused by delays.
  • Families and executors do not need to take action at this time.
  • NS&I has fixed the error and improved its process for handling bereavement claims starting January 2024.
  • The former NS&I boss resigned in March due to the scandal.
  • Some victims reported long delays and difficulty accessing funds, causing distress and extra legal costs.
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