§ 4. Bank deposits do not become time-barred until after 20 years
Money you keep in a bank does not become time-barred (foreldet) under the ordinary 3-year period. The claim (kravet) only becomes time-barred 20 years after the bank has given notice under the Financial Contracts Act (finansavtaleloven) § 4-46. The bank must also have done what can reasonably be expected to get in touch with you or your heirs (arvingene).
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
The text of the law (unofficial translation)
1. A claim (fordring) against a bank or public treasury in respect of deposits or valuables placed in safekeeping, as well as claims for interest (renter) connected with such a claim, only become time-barred 20 years after notice has been given under the Financial Contracts Act § 4-46. This applies even if interest is credited to the account after such notice has been given. Limitation (foreldelse) only occurs if, before the expiry of the limitation period (foreldelsesfristens), the institution has done what can reasonably be expected to get in touch with the account holder or the heirs. 2. Limitation is interrupted when the creditor (fordringshaveren) contacts the institution or the account is used through a withdrawal or through funds being deposited into the account. Equivalent to a bank is any other institution which, with authority in law, obtains funds for its business by receiving deposits from an indeterminate group of depositors. 3. The Financial Contracts Act § 4-46 applies correspondingly to claims against a public treasury.
What does this mean?
§ 4 is about money and valuables held by a bank or a public treasury. The most important point is that ordinary bank deposits do not become time-barred after 3 years. If you have money in an old account, that does not mean the bank can simply keep the money because you have not used the account for a long time.
This is a special rule. It differs from the main rule in § 2, where the period is usually 3 years. The reason is simple: money in a bank account is not the same as an unpaid invoice (faktura). You have already given the bank the money. The bank owes you the money back when you want to use the account. That is why the law gives you stronger protection.
Before limitation can happen at all, the bank must have given notice under the Financial Contracts Act § 4-46. That is a rule about notice for accounts or arrangements that have not been used. After such a notice, a long period of 20 years begins. This means the account does not disappear just because it has been inactive.
Nor is it enough that 20 years have passed. The bank must also have done what can reasonably be expected to get in touch with the account holder or the heirs. This is important. If the bank knows where you live, has your national identity number (fødselsnummer), contact information or can find heirs in the usual way, the bank cannot just sit back.
The second paragraph explains how limitation is interrupted. It happens if you contact the bank. It also happens if the account is used. A withdrawal of money interrupts limitation. A deposit of money does the same. The law also says that other institutions that lawfully take deposits can be treated as equivalent to a bank.
The third paragraph says that the notice rule in the Financial Contracts Act also applies to claims against a public treasury. This could, for example, concern money held by a public body. This is more unusual, but the point is the same: such claims have stronger protection than ordinary claims.
Can the bank take my money if the account is old?
Not just because the account is old. That is the short answer. The bank must follow § 4. This means it must give the correct notice, wait out the 20-year period and have done what can reasonably be expected to find you or your heirs.
This does not mean you should ignore old accounts. It only means that the law does not let the bank take over the money quickly. If you have an account you do not use, you should still sort it out. Check your online bank. Contact the bank. Move the money to an account you actually use. That makes everything easier.
The rule is especially important when someone dies. Many heirs discover old bank accounts long afterwards. Perhaps the deceased had a savings account in another bank. Perhaps there was money in an account that nobody in the family knew about. Under § 4, it may still be possible to claim such money, even if the account has been inactive for many years.
It is also important that the interest is included. The first paragraph says that claims for interest connected with the deposit follow the same special rule. So the bank cannot say that the deposit itself still stands but that the interest became time-barred after 3 years. The law treats these together.
At the same time, you must distinguish between bank deposits and other claims against the bank. If you have a claim for compensation (erstatningskrav) against the bank because the bank made a mistake, § 4 may not apply. § 4 applies to claims against a bank in respect of deposits or valuables placed in safekeeping, as well as interest connected with these. Other claims may follow other limitation rules.
What happens if you get it wrong?
If you do not follow up on an old account, the matter can become more difficult. Documents can disappear. Heirs can lose track. The bank may have sent a notice without anyone reacting. Then the 20-year period can eventually become a real problem.
But the most important thing is this: do not give up just because the account is old. § 4 is made precisely for situations like this. It gives a long period and requires the bank to actually try to get in touch with the right person.
If you are an heir, you should also be thorough. Ask the bank to check whether the deceased had accounts. Use the probate certificate (skifteattest) when needed. Keep the answers you receive. If the bank says the money is time-barred, you should ask for a specific explanation: when was notice sent, to whom, and what attempts were made to find the account holder or heirs?
Examples
Eva finds old papers belonging to her father. Among the papers is an account statement from a bank he used many years ago. The account had NOK 38,000. The family thought all accounts had been closed when the estate of the deceased (dødsboet) was settled. Eva contacts the bank. The bank finds the account in its system. It has not been used for many years, but the bank cannot simply say that the money is time-barred after 3 years. This is a bank deposit. That means § 4 applies. The bank must check whether notice has been given under the Financial Contracts Act § 4-46, when the notice was given, and whether the bank has done enough to contact her father or the heirs. If no such notice has been given, or the bank has not tried to find the heirs in a reasonable way, the claim is not time-barred under § 4. Eva and the other heirs can then demand that the money be included in the estate of the deceased.
Marius has an old savings account he has not used since he was a student. There is NOK 12,500 in the account. He has moved several times, but the bank has his national identity number and can send a digital notice. After many years, Marius receives a notice from the bank about the inactive account. From such a notice, the 20-year period under § 4 can begin to run. But if Marius logs in, withdraws money or deposits NOK 100, limitation is interrupted. The same applies if he contacts the bank and says the account is his. Marius should not think that the account is “lost”. He should contact the bank, confirm ownership and move the money if he wants to keep his finances in one place.
Common mistakes
- Believing that money in the bank becomes time-barred after 3 years
- Forgetting old accounts when dealing with an estate of the deceased
- Believing that interest on old deposits becomes time-barred separately under the main rule
- Not contacting the bank because the account is “too old”
- Confusing bank deposits with other claims against the bank
What should you do?
If you have an old account, contact the bank in writing. Include your name, national identity number and what you know about the account. Ask the bank to confirm the balance, the status and whether notice has been sent under the Financial Contracts Act § 4-46.
If you are an heir, attach the necessary documentation. This can be a probate certificate or other documentation showing that you can act on behalf of the estate of the deceased. Ask the bank to look into old account arrangements.
If the bank believes the claim is time-barred, you should ask for dates. Ask when the notice was given. Ask what steps the bank took to contact the account holder or heirs. Ask what documentation the bank is relying on. These are specific questions the bank should be able to answer.