Warning as 670,000 people could be charged up to £420 to access their own money - Birmingham Live

Warning as 670,000 people could be charged up to £420 to access their own moneyThe funds are from the Government's Child Trust Funds, which were long-term, tax-free savings schemes handed

out to children born between 1st September 2002 and 2nd January 2011.NewsAnnabal Bagdi Senior reporter and Elaine Blackburne Network Content Editor08:47, 01 Jun 2025Updated 08:49, 01 Jun

2025There could be thousands of pounds in these accounts(Image: Getty) Money mavens are sounding the alarm over outfits purporting to hunt down dormant savings accounts, cautioning that it

may result in consumers being short-changed.

The public is advised to sidestep shelling out hefty sums for a service that's actually free of charge.

‌ A whopping 670,000-plus youngsters have unclaimed nest eggs awaiting recovery.

‌ These reserves originate from the Child Trust Funds - long-term, tax-exempt saving plans doled out to kids born between 1st September 2002 and 2nd January 2011.

HM Revenue and Customs has disclosed that the average windfall is around £2,212.

When someone turns 18, they can lay claim to these assets by simply reaching out to the fund manager.

Article continues below READ MORE: Single mum 'breaks down' after £100 rent hike and says 'it needs to stop'

Should the identity of the provider be a mystery, this information can be sourced directly from HM Revenue and Customs. Despite this, certain firms offer to conduct searches and pinpoint the

provider – pocketing a slice of the funds as a finder’s fee.

This alert comes on the heels of a verdict from the Advertising Standards Authority (ASA) which outlawed a trio of TikTok promotions by one such enterprise.

‌ The company pushed its services, assuring potential clients they had "nothing to lose", whilst omitting the steep charges up to £420, according to Lancs Live.

Aaron Peake, CredAbility's Personal Finance Expert, sounded the alarm, commenting: "It's outrageous that some firms are charging young people hundreds of pounds to access their own money.

These Child Trust Funds were set up to give young people a financial head start, not to create a payday for middlemen."

He underscored the potential value hidden in Child Trust Funds, stating: "Around six million Child Trust Funds were opened for children born between 1 September 2002 and 2 January 2011, with

most getting a government voucher of £250 or £500. Parents could top it up too, so there could be a decent amount waiting."

‌ He went on to explain that claiming the fund is completely cost-free and only requires a brief moment via the government's online portal.

He said: "Reclaiming your fund is completely free and only takes a few minutes through the government website. We've seen ads making the free tool look confusing, when really all you need is

your date of birth and National Insurance number. Once you know your provider, you can access the cash, move it into a savings account, or transfer it into a Lifetime ISA."

The warning follows an ASA decision prompted by a complaint from Martin Lewis' Money Saving Expert, taking issue with financial claims firm Turner Lewis' TikTok post and website services.

‌ The TikTok post from Turner Lewis advised consumers: "If you haven't claimed yet then don't worry, because we've got your back. Just click the link below to begin your process of locating

your Child Trust Fund and, guess what? It's a no-win, no-fee basis, meaning you've got nothing to lose..." Viewers were enticed by a link that led them to a webpage asking for permission to

let the company find their trust fund and assist with access. There was even a space left for a signature to confirm consent.

Turner Lewis & Co.'s website stated, "Find Your Child Trust Fund With Turner Lewis [...] we offer expert services to help you locate your Child Trust Fund on a no-win, no-fee basis. Our fee

is 25% plus VAT of the total amount in the account."

Slightly less prominently displayed, there was an additional caveat: "Please be aware that you also have the option to locate your Child Trust Fund for free directly through HMRC. However,

our dedicated team has successfully assisted thousands of clients, providing a comprehensive walkthrough, results and peace of mind".

‌ Questions were raised by Money Saving Expert about the truthfulness of the advert's phrase "you've got nothing to lose", since Turner Lewis did impose charges for their service, despite

the availability of a free HMRC tool to trace Child Trust Funds. The Advertising Standards Authority (ASA) also cast doubt on both advertisements, querying if consumers were being misled

about the service promoted and whether it could prevent them from pursuing the free claim channel.

The ads were further scrutinised for potentially not disclosing necessary details about cancellation fees and the cooling-off time frame connected to Turner Lewis's offerings.

Turner Lewis Ltd defended their claim, stating that the phrase "you've got nothing to lose" merely illustrated their "no win, no fee" service. This meant clients wouldn't incur charges if

their Child Trust Fund wasn't located, leaving them no worse off for having used the service.

Article continues below They also insisted that the adverts didn't imply the service came at no cost, citing the clear information about their services provided through their advertisements,

website, and terms and conditions.

However, the ASA ruled in favour of the complaints, instructing Turner Lewis Ltd to cease using the adverts in their current form and ensuring their advertising did not mislead customers in

the future.