Dot ComUnity Credit Union - ISA

thenudeone

To the Official Company Rep:

Can your website please be changed to remove the anomaly highlighted here (and let us know which is correct!):

Ed-1 wrote: »

Also can you please clarify whether withdrawals from the 1, 3 and 5 year ISAs are allowed subject to 90, 240 and 365 days notice respectively (as stated on the webpages) or subject to 90, 240 and 365 days loss of interest respectively (as stated in the summary sheets) or both. These are two very different statements.

thenudeone

Email response received today:

Thank you for your email relating to the Cash NISAs from DotComUnity Credit Union.

I can confirm that the 5 Year ISA Withdrawals are subject to 365 days loss of interest and NOT any notice period.

This is in line with industry standards for the equivalent products.

We have adjusted the website to clearly reflect this

Still a very good rate, though.

Ed-1

thenudeone wrote: »

Email response received today:

Thank you for your email relating to the Cash NISAs from DotComUnity Credit Union.

I can confirm that the 5 Year ISA Withdrawals are subject to 365 days loss of interest and NOT any notice period.

This is in line with industry standards for the equivalent products.

We have adjusted the website to clearly reflect this

Still a very good rate, though.

These amended terms and conditions surely can only take affect with accounts opened from today (the day they were amended) and not accounts opened under the previous terms (where withdrawals were clearly allowed subject to giving the advertised notice). I for one have an email which confirms that withdrawals are 90 days notice OR 90 days loss of interest, 240 days notice OR 240 days loss of interest and 365 days notice OR 365 days loss of interest. I also have saved a copy of the terms and conditions which were in effect when I opened the account.

The terms say: "Withdrawals from this NISA are subject to 90/240/365 days notice. Immediate access is subject to 90/240/365 days loss of interest". They also say "Within 28 days of maturity, we will write to advise you of any amendments to the Terms and Conditions of your Account ... These amendments may include the access terms, withdrawal arrangements...".

They do not say that these terms may be amended during the term of the account, and indeed it would be farcical if they could. If they could take effect with existing accounts then this would clearly constitute a retrospective change to the terms.

The marketing even still contains the notice terms: http://www.dotcu.org.uk/assets/images/ISA_A5_AGM_leaflet_HR.pdf






If they do not honour the terms on which the accounts were opened when this is how they were sold and even have sent out confirmation emails to confirm the access terms, then I for one would be informing the FOS if that was the case.

DragonQ

I thought cash ISAs had to be instant access as per the rules, hence all "fixed term" ISAs actually just having an interest penalty rather than a proper notice period.

Unless things have changed with NISAs, they will have to take interest off if you withdraw early.

Archi_Bald

DragonQ wrote: »

I thought cash ISAs had to be instant access as per the rules, hence all "fixed term" ISAs actually just having an interest penalty rather than a proper notice period.

Unless things have changed with NISAs, they will have to take interest off if you withdraw early.

There are no rules that say cash ISAs need to be instant access. There have always been instant access, notice period and fixed term cash ISAs.

Providers don't have to take interest off if you withdraw early from a fixed term cash ISA but they generally do, if they offer early access at all.

Ed-1

DragonQ wrote: »

I thought cash ISAs had to be instant access as per the rules, hence all "fixed term" ISAs actually just having an interest penalty rather than a proper notice period.

Unless things have changed with NISAs, they will have to take interest off if you withdraw early.

The (N)ISAs are and were instant access: you paid an interest penalty for immediate access but could avoid that by giving the same number of days notice for the withdrawal.

The NISAs seem to have been taken down from the website now; whether that is to change the information or because they've been pulled or suspended is anyone's guess.

MARTYM8`

While I fully support the aims of the credit union and welcome the good ISA rates I am a little concerned at the lack of detail on their website as the ISA pages are constantly updated or pulled and there is no interest rate or terms and conditions information provided on the site for existing account holders.

I opened an account back in April - the terms I had were that there was no upper limit to the account balance for the 3% one year fixed rate ISA so you could transfer in more than £15k. Now under this latest tranche the maximum account balance is £15k. Surely this should be described as an Issue 2 - or do these new terms apply to accounts opened between April and July (when the ISAs were temporarily withdrawn).

Perhaps the credit union could look at providing clearer historic information and rates for all their accounts - because I am relying on emails and details I have kept as there is little on their site. Because while I am sure things will be fine - the lack of ongoing rate or terms information for existing account holders is a bit concerning.

Also the online account members area details don't include any withdrawal information or mechanisms for ISA accounts (just the everyday personal account) - so its not clear how you can withdraw your funds from the ISA? Do you request withdrawals by email?

While these may seem minor concerns - it would assist in reassuring existing account holders given the regular updating of the website.

trenchwars

Has the ISA closed to new applicants? It seems to have disappeared from the website.

MRMX9

trenchwars wrote: »

Has the ISA closed to new applicants? It seems to have disappeared from the website.

Here is the savings home page as it stands today – lots of accounts you can potentially open in theory but absolutely no details (interest rates or terms or account opening) for any of them.

http://www.dotcu.org.uk/creditunion/savings/

I assume therefore the ISA is again closed to new investors – but when they take the page down why not put a note there to say so?

Its just a little frustrating for existing account holders – as bar checking our online balance there is no detail available on the site about the terms for our account or the rates we are getting?

Hopefully this is just due to a site refresh – but why not say so.

Archi_Bald

I must say, if it wasn't for the FSCS guarantee, I wouldn't have a penny in their ISA.