BBC experts say people who had kids in 9 year period 'need to check' if owed £2,000+

BBC experts say people who had kids in 9 year period 'need to check' if owed £2,000+ BBC Radio 4’s Moneybox program said the Financial Conduct Authority is concerned as 760,000 funds are sitting unclaimed A BBC expert has explained how a key change is happening for anyone who had children in a 9-year period - and how it could mean discovering more than £2,000 they’re owed. BBC Radio 4’s Moneybox program said the Financial Conduct Authority was concerned because 760,000 matured Child Trust Funds, worth an average of £2,240 each, remain uncollected. The FCA is encouraging young adults and parents to verify whether they have an overlooked Child Trust Fund awaiting collection. The FCA is launching an investigation into Child Trust Funds. This will examine a range of concerns, including instances where young adults cannot be reached upon turning 18 and risk losing contact with their savings entirely. Parents who had children between 2002 and 2011 that they could be entitled to a payment exceeding £2,000. Presenter Paul Lewis said: “More than one and a half billion pounds is languishing unclaimed and this week the Financial Conduct Authority has launched a review into how firms can ensure the young people who earn it get their own money.” Expert Dan Whitworth said: “Child Trust Funds were open to every baby born between September 2002 and January 2011. Normally kickstarted with £250 from the government. The idea was by the time the baby turned 18 along with bits and bobs of money from family and friends, it would be a nice financial nest egg to help them start adulthood. “And it’s worked that way for many, but the FCA says there are still 760,000 accounts holding an average of £2,000 each waiting to be claimed.” Mr Lewis said: “We’ve covered this before. What’s the FCA doing now that’s new that might help?” Mr Whitworth explained: “It’s clearly worried some young adults aren’t getting their money, so it’s looking at how firms are ensuring Child Trust Fund customers get fair value under consumer duty. It’s also asking if there are barriers to vulnerable young adults accessing their money, such as the 80,000 or so with learning disabilities, and what’s stopping their parents from claiming the money on their behalf. “That review will report next year. Meanwhile, of course, as we’ve reported before, remember those dates - September 2002 and January 2011 go to gov.uk and search ‘child trust funds’ - you’ll find all the information you’ll need. It’s free and also the FCA are warning people not to use firms advertising on social media - they can charge hundreds of pounds and that’s money down the drain.” Certain companies, including those promoting on social media, are proposing to ‘locate’ and claim Child Trust Funds on individuals’ behalf - frequently for a substantial fee or a portion of the final payout. The FCA said it had seen cases where customers were charged £400 to trace the account, and it has even observed some firms imposing a monthly subscription for a one-off tracing service. However, missing funds can be traced free of charge without surrendering a penny to a middleman. Chris Knight, director of insurance at the FCA, said: “A Child Trust Fund can be a welcome source of extra cash at a time when many young people need it most. But you don’t need to pay someone else to claim what’s rightfully yours - tracing and accessing your own Child Trust Fund costs nothing, so think twice about handing over a chunk of your savings to a claims firm for a job you can do yourself.” Myrtle Lloyd, HMRC’s chief customer officer, said: “If you’re between 15 and 24, you could be sitting on a savings payout and not even realise it. Just search ‘find my Child Trust Fund’ on GOV.UK to find your savings account today.” How to check if you have a Child Trust Fund. Anyone aged 18 or over who was born between 1 September 2002 and 2 January 2011 could have a Child Trust Fund that they can access. The process is simple and completely free: If you are aware of which provider holds your Child Trust Fund, you can get in touch with them directly to arrange a withdrawal or transfer. If you’re not sure where your account is held, you can use HMRC’s free online tracing tool to find out. You’ll be required to verify your identity with the provider, but there is absolutely no charge involved. It’s worth noting that tracing a Child Trust Fund may be offered by firms regulated by the FCA, such as claims management companies. However, the tracing service itself doesn’t typically require FCA authorisation. As a result, firms providing this service may not be subject to the FCA’s cap on claims management fees, and customers could find themselves unable to bring complaints to the Financial Ombudsman Service. To listen to the BBC Moneybox program click here.