Press release: AiB encourages creditors to claim their money

This financial year so far, Accountant in Bankruptcy (AiB) has successfully returned £4.4 million of consigned funds to companies and individuals owed money by people who have been declared insolvent in Scotland. AiB, Scotland's insolvency service, has responsibility for holding unclaimed funds or 'consignations', following a bankruptcy or trust deed case, until a person or company comes forward to claim the money owed to them. Since April 2011, a total of £4.4 million of money belonging to creditors has been transferred back to them through investigative and partnership working carried out by AiB.

This month alone, £1.15 million has been returned to the Royal Bank of Scotland, one of the UK's largest creditors, made up of 773 dividend payments. This was a result of money consigned to AiB at the end of either a personal bankruptcy or trust deed case, where trustees were unable to facilitate the transfer of funds. It builds upon other successes including £998,000 returned to HMRC and £2.5 million to Lloyds Banking Group as well as numerous, smaller payments to a variety of organisations, small businesses and individuals owed money by people declared bankrupt or insolvent.

In addition, approximately £1.5 million worth of funds is currently being verified by creditors, with work already underway to ensure that these funds are uplifted as soon as possible. AiB will continue to work closely with creditors to look at ways of ensuring that money due to them, can be paid quickly and effectively.

Rosemary Winter-Scott, The Accountant in Bankruptcy and Agency Chief Executive said:

"It is important that Scotland's insolvency process balances the needs of debtors and creditors. When dividends are produced as a result of insolvency, it is key that they are actually returned to the creditors to whom they belong, for the benefit of the wider economy. The Agency has worked hard to ensure that it is better able to connect creditors with funds they might not otherwise have received and as a consequence, reduce the amount of creditors' funds the Agency holds."

Creditors who are interested in establishing whether or not AiB holds funds that have been consigned in their name should contact AiB directly on financequeries@aib.gsi.gov.uk

Background

• Accountant in Bankruptcy (AiB) is an Executive Agency of the Scottish Government with responsibility for administering the process of personal bankruptcy, administering the Debt Arrangement Scheme and recording corporate insolvencies in Scotland. AiB's mission is to ensure access to fair and just processes of debt relief and debt management for the people of Scotland, which takes account of the rights and interests of those involved. 
   
• Consignations are unallocated funds at the end of a bankruptcy or trust deed case, which are held securely in a deposit account. AiB has responsibility to hold the funds for a period of seven years after the case has closed to allow creditors to come forward and claim their money. After this period, any funds remaining are then surrendered to the Scottish Consolidated Fund. 
   
• A consignation can occur due to the following reasons:
  - Unreturned dividends: dividends that a trustee (AiB or private trustee) has been unable to pay to a creditor due to issues with locating the correct owner of debt because of financial institutions merging/ closing or selling debt onto third parties.
  - Return to debtors: surplus funds due back to the debtor where all creditors and fees have been paid in full but the trustee has been unable to pay due to incorrect contact details, no forwarding address or no response from the debtor.
  - Unapplied balances: in some rare occasions, it can be uneconomical to return small amounts of money where the cost of paying the creditor is greater than the actual sum of money owed.
   
• Creditors who are interested in establishing whether or not AiB holds funds that have been consigned in their name should contact AiB Finance team directly by e-mailing financequeries@aib.gsi.gov.uk