Dot ComUnity Credit Union - ISA

gwapenut

darren72 wrote: »

Has anyone had any progress with Cork Gully and the additional payment due for the interest shortage ?

Not me - I'm not chasing it until my cheque has cleared.

tk200

I spoke to Alison in the FD ISA team earlier and she confirmed there shouldn't be any issues. She recommended, however, that the cheque was paid into my FD current account at an HSBC branch. She said if the cheque was sent with all the other paperwork it would have to be forwarded on to their accounts dept to be processed and this could take about a week.

darren72 wrote: »

First Direct have informed me that their ISA Team is fully aware of the situation. To process the ISA they need the following:

• Original Cheque
• Final Statement for Cash ISA showing balance
• Their transfer form completing (although it is just for their reference, and won't be sent anywhere)

As the cheque doesn't match the final statement amount this needs to be checked by them, as does the second cheque that should be sent out for the additional interest that is due. They are going to advise me later today on these two points.

Ed-1

Well I finally received my FSCS cheque today in the post (with the envelope already peeled off and was open!) and also received the ISA statement in a separate envelope.

Went to Santander as I'd opened a 1.5% Direct ISA Saver a few months ago, equipped with the relevant slice of the ISA regulations from the HMRC guide for ISA managers and all the paperwork and cheque from EBCU/FSCS. They phoned through to their ISA processing team at head office and after a lengthy discussion agreed that they could accept the deposit as a defaulted ISA subscription. However they said their systems physically wouldn't allow them to deposit the ISA cheque in the branch without it contributing to the allowance as new money so they've sent it via internal mail to their ISA processing centre as if it were a normal ISA transfer (with FSCS the old ISA manager) and in normal ISA transfers into Santander cheques are banked and then interest is adjusted and backdated to the date of the cheque so we'll see if this happens in this case.

Ed-1

darren72 wrote: »

Has anyone had any progress with Cork Gully and the additional payment due for the interest shortage ?

Are you certain that the interest credited on 13/05 for interest up to 14/05 does not include the backdated interest to the date of the original transfer cheque? My interest was as expected + a bit which I assumed to be the backdated interest (couldn't remember the exact dates of the transfers). I wouldn't expect a separate credit for backdated interest as the start date of the interest calculated should have been adjusted when the cheque was first credited.

mt77

darren72 wrote: »

Has anyone had any progress with Cork Gully and the additional payment due for the interest shortage ?

I sent Cork Gully an email regarding my shortfall in interest two days ago.... and not a word from them, except for their automated response.


I am confused whether I should be depositing this cheque as it does not contain the interest I am due, I am short by about 4 days interest. FSCS are telling me I should go ahead regardless.


Also, this cheque contains the £5.00 from the share account. I can imagine it being no problem if someone hasn't fully subscribed to their ISA this year but I already have fully subscribed for this year's ISA allowance. Despite explaining to FSCS this morning I was told this should not be a problem .


Even if I do go ahead and put this cheque in my ISA I have to travel 35 miles to my new ISA manager just to deposit it. This would have been free had the normal transfer procedure had of taken place.


This whole thing is a shambles. FSCS and Cork Gully seem to be just as disorganised as DCU / EBCU.

gwapenut

Ed-1 wrote: »

Are you certain that the interest credited on 13/05 for interest up to 14/05 does not include the backdated interest to the date of the original transfer cheque? My interest was as expected + a bit which I assumed to be the backdated interest (couldn't remember the exact dates of the transfers). I wouldn't expect a separate credit for backdated interest as the start date of the interest calculated should have been adjusted when the cheque was first credited.

Yes, positive. Mike Grimsdale said at the time that they couldn't amend the deposit date, but would adjust calculations manually on maturity.

I can confirm that when we calculate the interest next year, this will add the number of days between the date we received it and the date of the cheque.

We cannot back date the physical receipt date as that would show incorrectly.

MARTYM8`

darren72 wrote: »

First Direct have informed me that their ISA Team is fully aware of the situation. To process the ISA they need the following:

• Original Cheque
• Final Statement for Cash ISA showing balance
• Their transfer form completing (although it is just for their reference, and won't be sent anywhere)

As the cheque doesn't match the final statement amount this needs to be checked by them, as does the second cheque that should be sent out for the additional interest that is due. They are going to advise me later today on these two points.

Thanks for this.

Given you need to have a First Direct current account to open an ISA with them why wouldn’t they just accept the cheque being paid into your current account with you then sending the photocopy/transfer application form/other evidence by post. The sums would match the paperwork – and it avoids things getting lost in the post.

They could just then transfer the funds – less the £5 – to your cash isa? Seems odd to have to send the cheque by post?

gwapenut

mt77 wrote: »

Even if I do go ahead and put this cheque in my ISA I have to travel 35 miles to my new ISA manager just to deposit it. This would have been free had the normal transfer procedure had of taken place.

You would be well advised to phone ahead, let them run around a bit, and then confirm to you before you set off that they WILL be able to accept the cheque.

I drew a blank at Nationwide, Santander and Lloyds on Tuesday.

You could also consider depositing into your current account and then posting a cheque and documentation to your normal ISA provider.

Re: FSCS saying it should be OK to deposit the whole cheque including £5 extra - surely that is completely wrong advice and breaks ISA regulations? The advice I was given, which I think is at least legally correct, was that it was up to me to split the cheque into ISA and non-ISA and that the simplest way would be to pay it into my current account and then write a smaller cheque out to my ISA provider.

mt77

gwapenut wrote: »

You would be well advised to phone ahead, let them run around a bit, and then confirm to you before you set off that they WILL be able to accept the cheque.

I drew a blank at Nationwide, Santander and Lloyds on Tuesday.

You could also consider depositing into your current account and then posting a cheque and documentation to your normal ISA provider.

Re: FSCS saying it should be OK to deposit the whole cheque including £5 extra - surely that is completely wrong advice and breaks ISA regulations? The advice I was given, which I think is at least legally correct, was that it was up to me to split the cheque into ISA and non-ISA and that the simplest way would be to pay it into my current account and then write a smaller cheque out to my ISA provider.

I find it unbelievable that FSCS have lied to me this morning. What you are saying makes logical sense. It would also be cheaper for me since I can deposit the cheque in my local current account and then make electronic fast payments to my ISA account (depending on the limit I can make each day - I think there is some £10,000 limit per day with Natwest).


But it also comes back to whether I should be paying this cheque in, since it is incorrect. I haven't had any response back from Cork Gully and if I do cash the cheque in it means I am accepting FSCS's amount (which I don't). All the while, I'm losing interest the longer this drags out.

gwapenut

mt77 wrote: »

But it also comes back to whether I should be paying this cheque in, since it is incorrect.

There's an additional consideration, yet to be (dis)proven, that some ISA providers may willingly accept an FSCS cheque for too much, but not a personal cheque for the correct amount.

We've already seen evidence of the former (colsten, pafpcg), but nothing yet to support the latter (my own situation).

Tread with care ... I'm committed to this path having banked the cheque... you're not!