Occasionally we read about street-sleepers who died leaving behind unclaimed cash and valuables. What we don't read from newspapers are about those street-sleepers and old folk who die without cash being found on them, without relatives, but with funds in their bank accounts.
A considerable number of elderly people in Hong Kong are recipients of the comprehensive social security allowance. For a single old person, the standard rate is over $2,000 per month. These welfare funds are paid direct to the recipients' bank accounts.
It appears that under the current arrangement, if a single old welfare recipient dies leaving no cash behind, the public has to foot the bill for the burial whereas the bank, which has been receiving welfare money for the person, will inherit any money left in the deceased's bank account.
The Social Welfare Department must prevent banks from taking effective procession of un-spent funds in deceased welfare recipients' bank accounts.
We must also look into how banks handle funds in dormant accounts.
Banks start charging a fee on any account that has been inactive for a certain period. In practice, an inactive account incurs no transactional costs. The Consumer Council may wish to review whether imposing penalties on low-cost deposits is a fair business practice.