Dot ComUnity Credit Union - ISA

veryintrigued

This is great news for you ladies and gents and a salient lesson for those onlookers of us who are / were ever tempted to save with non FSCS providers or more than the £85k protection limit.

Question for you though - it appears that you'll also get the interest you were owed too. Is this addition of the interest part of the FSCS protection or just an 'added bonus' in this case?

Steve_xx

veryintrigued wrote: »

Question for you though - it appears that you'll also get the interest you were owed too. Is this addition of the interest part of the FSCS protection or just an 'added bonus' in this case?

Interest is added by the FSCS up to the date that the company went into administration, and the rate of interest added is in accordance with what you signed up for. It is not a bonus of any sort.

veryintrigued

Steve_xx wrote: »

Interest is added by the FSCS up to the date that the company went into administration, and the rate of interest added is in accordance with what you signed up for. It is not a bonus of any sort.

Thanks for the clarification Steve

colsten

I am very happy with the way things seem to be progressing towards a resolution, and very confident that I'll have my money safely in a new ISA in the next 7-10 days.

Great that the Administrators have given us a heads up, thank you to Cork Gully.

gwapenut

Do these cheques need to be paid into ISAs that "accept transfers" or, if they are less than 1 year's ISA allowance, is there a chance of paying them into ISAs accepting "new money"?

As there seem to be a few more hoops to jump through than for normal transfers (showing the FSCS letter etc) it crossed my mind whether the cheque could be credit to a "new money" ISA, with another "new money" ISA being opened for this year's subscription elsewhere?

Not sure I want to play with fire though!

colsten

I suspect you'd need to ask the HMRC. My cheque will be for more than £15,240, so I won't pursue the option you mention myself.

EDIT: On second thoughts: the HMRC wouldn't know what the terms of your provider are, so you'd probably be alright just doing it if the ISA provider lets you. How much would you stand to gain?

masonic

gwapenut wrote: »

Do these cheques need to be paid into ISAs that "accept transfers" or, if they are less than 1 year's ISA allowance, is there a chance of paying them into ISAs accepting "new money"?

As there seem to be a few more hoops to jump through than for normal transfers (showing the FSCS letter etc) it crossed my mind whether the cheque could be credit to a "new money" ISA, with another "new money" ISA being opened for this year's subscription elsewhere?

You could certainly pay the money into a "new money" ISA without showing the letter, it would be just like self-transferring and count towards your 2015/16 allowance.

However, what I think you are really asking is can you go to one of these providers, who do not accept ISA transfers, and pay in this money without it being regarded as an ISA transfer. If that's what you are asking then I strongly suspect you are out of luck because if you use the FSCS letter then you are effecting an ISA transfer with the FSCS acting as proxy for the sending ISA manager (and short-circuiting Step 1 of the Cash ISA to Cash ISA transfer process as outlined by HMRC).

If the amount being transferred is above £15,240, I rather suspect the possibility would not have even entered your mind, so considering the more usual case of an ISA transfer taking place with the sending manager not in Administration... would you normally expect to be able to transfer a previous year ISA that is below the annual allowance to one of these providers? If you could, one could imagine scenarios where you could make use of partial transfers to spread your money around these "new money" ISAs - but if anything like that is going on, then the news has escaped me.

...And supposing you did go ahead and take your cheque and FSCS letter to one of these providers who do not accept transfers, what recourse would you have if there was a misunderstanding and the money was paid in as "new money" for the 2015/16 tax year, leading to an oversubscription and loss of ISA allowance on your part? I would suggest the waters would be very muddy indeed, given the stated terms around deposits into such accounts.

Gizmo70

I presume the money we get back will not include that which went into the Basic Share Account?

Steve3S13

nah that fiver is long gone, paid for some office workers morning latte from Starbucks or a greasy sausage roll or two of the sandwich van

masonic

Gizmo70 wrote: »

I presume the money we get back will not include that which went into the Basic Share Account?

I previously described the situation with respect to the Basic Share Account here. I hope nobody was taken in by the 'optimistic poster' who claimed they paid substantial extra money into this account and encouraged others to do the same in order to "share the risks & burdens as well as the benefits". No doubt the directors won't be sharing the risks and burdens as they'll help themselves to what money is left before any members see a penny of the money they put into the share account.