What is a bank loan?

What to do about an Unused Litigation Loan in a Bank Account?

• A relative has an unused Litigation Loan of just over £1,000, which was set up for her in a bank account. The account was opened by a Personal Injury firm on her behalf, to cover legal expenses, following a tripping accident claim she wanted to make. However, as this personal injury case was dropped, the loan was never actually used, and instead has just been left in this bank account to gather interest. This loan was taken out in £2003, and despite her contacting the bank, they stil haven't cancelled it. So what should she do? Is this money hers to draw off anyway? And even if the bank does take back this unusused loan, will she still have this bank account open?

• Answer:

  Depends on what kind of agreement your sister has signed. As it was taken on 2003, I simply suggest that you ring the bank and tell them that your sister has not used the money and it is not required any longer. As they have not charged her anything, they will simply close the account.