Dot ComUnity Credit Union - ISA

someone

I presented my cheque on Saturday at Nationwide. I did first approach the enquiry desk but direct to the main cashiers. There was a bit of confusion at the cashier desk but in the end everything was photocopied and the cheque handed over (they gave me a copy). They also gave me a hand written nationwide receipt for the documents and cheque.

They said if it did not appear on on-line banking in the next 10 working days then to give them a ring.

colsten

Bhamstudent wrote: »

I'm somewhat confused!

Me too. I think we can safely say this is because we are getting different, and sometimes conflicting, information from Nationwide.

whw

I've been sitting in a small Nationwide branch for the past hour and the poor Branch Manager has been given the whole HMRC spiel from his HQ ISA team. I've been quoting everything that's been happening on this forum for the past hour and they're now helping me raise a formal complaint.


Edit: I thought I should add this to give a complete picture of what happened today (sorry, I don't usually retro-edit):-

I first read up on all the activity on this thread before doing anything. I decided to call my local branch who advised me to call the Nationwide ISA team (0800 302011). I spoke to Laura at Nationwide HQ who didn't have the foggiest about FSCS cheques and I ended up quoting sections of this thread, specifically other Nationwide branches were taking photocopies and sending them through to HQ.

Laura, if you are reading this, why didn't you read the internal email that was sent out on the 22nd May notifying your whole ISA team about FSCS cheques? Or more importantly, why didn't the rest of the team read the internal email that was sent given we've all been experiencing different problems at branch level.

Anyway, I'd spent about 1.5 hours in branch and was informed they couldn't check the information I'd quoted from this thread because they don't have internet access in branch, and apparently aren't supposed to use their phones to check either! I felt sorry for the staff helping me because they kept apologizing on behalf of HQ. Shambles!

whw

An update from me:

I left copies of everything with my branch, including the weblink for the PDF about re-instating ISA funds.

Following a PM heads-up from Bhamstudent (Thanks!) regarding their experience at their branch today, I contacted my one and the bottom line at Nationwide HQ is:

"They do not have a process in place at the moment."

Apparently when NHQ found out about this FSCS cheque thing, they issued an internal email on Friday 22nd May. So it would appear branches should have been made aware of people turning up with this cheque.

The crux of the matter is the £5 Share Account monies included in the cheque which as we all know, isn't ISA protected. Nationwide need to contact HMRC to ascertain the correct process to deal with this.

The procedure for now has been to take photocopies (or originals) and
once a process has been confirmed they will back-date interest to the date you first showed up with the cheque in branch. My branch advisor stated I will have to complete an ISA Transfer form at some point and things should work out.

The advisor had earlier raised a complaint for me which I've left open since this is an active situation. Although I did point out that based on information posted here, First Direct seemed to have no issue with their procedures and I may have to consider them as a provider if Nationwide don't pull their finger out by the end of the week.

Bhamstudent

whw wrote: »

The crux of the matter is the £5 Share Account monies included in the cheque which as we all know, isn't ISA protected. Nationwide need to contact HMRC to ascertain the correct process to deal with this.

I mentioned this to the advisor at Nationwide today - I even said I was happy for this to be split off into my Flex Account. His view was that it couldn't be split and that it would be credited to my ISA - again, we shall see!

MARTYM8`

Bhamstudent wrote: »

I mentioned this to the advisor at Nationwide today - I even said I was happy for this to be split off into my Flex Account. His view was that it couldn't be split and that it would be credited to my ISA - again, we shall see!

The fuss made about this £5 – and the time and resources now being wasted on it – is just beyond comical. And all because the administrators didn’t have the common sense to issue two separate cheques – alongside the two separate statements.

I am still at a loss as to why we were even paid the £5 as part of the FSCS cheque – surely that should have come from the administrators out of the remaining funds of the credit union – as the basic share accounts were not covered under the £85,000 guarantee anyway.

I estimate the tax free benefit of this £5 being erroneously paid into an ISA account is about 4 pence per annum – assuming an ISA interest rate of 1.5%. If HMRC are going to track us down over 4p – well good luck to them.

How difficult is the concept – you bank the funds, they move £5 into a current or another savings account (I have an NW current account) and the balance is transferred into an ISA. Is it really such a challenge to apply some common sense without having to refer the matter to the FSCS?

gwapenut

Nationwide still won't take my £5-less cheque from my current account, and have no excuse about a mix of ISA/non-ISA funds in my case.

Still, I am at least earning interest on it now, and more after tax than I would be getting in the Flexclusive ISA

colsten

whw wrote: »

Apparently when NHQ found out about this FSCS cheque thing, they issued an internal email on Friday 22nd May.

Do you know any more on what the email said and who it went to? Please share if you do

whw wrote: »

The crux of the matter is the £5 Share Account monies included in the cheque which as we all know, isn't ISA protected. Nationwide need to contact HMRC to ascertain the correct process to deal with this.

this sounds just like utter poppycock by Nationwide. I was given the runaround ("need to confirm with HMRC" etc etc) without anyone even knowing anything at all about the £5. I tried at a later stage and on my initiative, not on their questioning, to make them aware of the extra £5 and suggested they should put the fiver into my FlexPlus and the rest into my to-be-opened FlexClusive ISA, the Nationwide operative said "not to worry about a fiver". I should have filmed/recorded this conversation for broadcasting and I think will do so with future discussions with Nationwide about this issue (https://www.periscope.tv/ is quite useful for this).

whw wrote: »

The procedure for now has been to take photocopies (or originals) and once a process has been confirmed they will back-date interest to the date you first showed up with the cheque in branch. My branch advisor stated I will have to complete an ISA Transfer form at some point and things should work out.

I got similar story, and once my complaint had been raised, the complaints man, Malcolm (who has no surname but luckily he is a real Malcolm, not a far east call centre Malcolm) called to say they need my original cheque and an ISA transfer form filled in and signed.

whw wrote: »

The advisor had earlier raised a complaint for me which I've left open since this is an active situation. Although I did point out that based on information posted here, First Direct seemed to have no issue with their procedures and I may have to consider them as a provider if Nationwide don't pull their finger out by the end of the week.

Nationwide couldn't care less about our money as they are still benefitting from the Funding For Lending Scheme, which is a lot cheaper than 1.6% for them.

Bhamstudent wrote: »

I mentioned this to the advisor at Nationwide today - I even said I was happy for this to be split off into my Flex Account. His view was that it couldn't be split and that it would be credited to my ISA - again, we shall see!

It would be dead simple to split the cheque. They can deposit the lot into our FlexXXX accounts, and from there move everything bar £5 into our FlexClusive ISAs as "ISA transfers". There is a chance that their systems may not let them perform an "ISA transfer" from one of their own current accounts but I think this highly unlikely - firstly, they haven't actually tried it for any of us yet, but their ISA transfer team should be able to deposit any old money from any old source into an ISA. They might have an issue in their reporting system (which reports ISA data to HMRC) but they shouldn't have as all authorised ISA providers are meant to be able to process ISA re-instatements, as per their authorisation by the HMRC to be an ISA Manager, and the HMRC Guidance Notes for ISA Managers.

MARTYM8` wrote: »

The fuss made about this £5 – and the time and resources now being wasted on it – is just beyond comical.

agree wholeheartedly

MARTYM8` wrote: »

And all because the administrators didn’t have the common sense to issue two separate cheques – alongside the two separate statements.

May be they were relying on the advice and guidance from people who used to be employed by the DCU/EBCU and who were in the habit of happily making up things as they went along, without ever thinking about their customers?

MARTYM8` wrote: »

I am still at a loss as to why we were even paid the £5 as part of the FSCS cheque – surely that should have come from the administrators out of the remaining funds of the credit union – as the basic share accounts were not covered under the £85,000 guarantee anyway.

I did mention to a senior FSCS Manager last Friday that FSCS should never have paid the fivers, as these were in non-FSCS protected accounts. I didn't get the impression that it was worth their while to follow up, presumably as the cost of investigating and correcting (or not correcting) why FSCS were paying out non-FSCS-protected money was most likely a massive multiple of just leaving things as they are now. Any official would probably rather die than admit to this but their decision would be utterly sensible as we are talking a fairly small amount of money.

MARTYM8` wrote: »

I estimate the tax free benefit of this £5 being erroneously paid into an ISA account is about 4 pence per annum – assuming an ISA interest rate of 1.5%. If HMRC are going to track us down over 4p – well good luck to them.

Similar for HMRC - you would probably never find anyone in HMRC to admit that they couldn't possibly care about an extra tax-free fiver for a few dozen, or even a few hundred, people, but in reality, it would be a massive waste of taxpayers' money if HMRC got excited about the extra fivers.

whw

Sadly I have no details of this internal email or who it was sent to within HQ. The branch advisor did say that even though we had a Bank Holiday this email shouldn't have been overlooked. I don't know if this means the branch staff overlooked or members of HQ's ISA team overlooked. In hindsight I should have pressed for clarity on this but I'd already spent considerable energy standing on a soapbox while in branch during the lunchtime rush. It really was hard trying to stay clam.

colsten

whw wrote: »

It really was hard trying to stay calm.

I know what you mean. Keep your powder dry, and keep asking for what is rightfully yours.

Nationwide wanted me to close my complaint on the grounds of "Malcolm's" promise that my cheque would be credited to my ISA that they have yet to open. Malcolm was even going to pay me money to close the complaint. I didn't ask how much as I just want them to deposit my FSCS cheque - minus the £5 if necessary - into a FlexClusive ISA so I can decide what to do next with the money in peace and quiet.