Dot ComUnity Credit Union - ISA

Steve_xx

Archi_Bald wrote: »

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

You've seemed to afford them a good deal of kudos, so it's interesting to hear you comment as you have today.

I went down the route of opening an ISA with them earlier on in the year. Then as a result of various things posted here, re the state of the website etc I kinda felt a tad uneasy. So I didn't progress it. Rightly or wrongly, I just don't get a comfortable feeling about the outfit. Though of course as you say, you are offered full protection under the FSCS.

On the question of the FSCS. They are members of the scheme as it were. Could they, or any other deposit taker stop being members for any reason? Because if there was a possibility that their membership could be revoked or they were able to opt out of being members then that could leave folk vulnerable. This question has been nagging me for while, so maybe this is a good opportunity to discuss the safety of FSCS membership. I've no idea how an outfit gains membership of it or if there can be deposit takers who are either not in it or decide for whatever reason to opt out membership?

Archi_Bald

I understand active FSCS membership is a condition of a deposit taker licence. If they were to fail in any way, that would be a licence breach, that is a default by itself and as such I would expect to be covered by the FSCS.

This may not be exactly how it works but I am not losing any sleep over it.

Steve_xx

Archi_Bald wrote: »

I understand active FSCS membership is a condition of a deposit taker licence. If they were to fail in any way, that would be a licence breach, that is a default by itself and as such I would expect to be covered by the FSCS.

This may not be exactly how it works but I am not losing any sleep over it.

That's good to hear!

ceredigion

Steve_xx wrote: »

You've seemed to afford them a good deal of kudos, so it's interesting to hear you comment as you have today.

I went down the route of opening an ISA with them earlier on in the year. Then as a result of various things posted here, re the state of the website etc I kinda felt a tad uneasy. So I didn't progress it. Rightly or wrongly, I just don't get a comfortable feeling about the outfit. Though of course as you say, you are offered full protection under the FSCS.

You`re not alone there Steve.
Look at this product twice ,not long after it was introduced for the first time and then again just before it was withdrawn for the second time. Both occasions ,came to the conclusion that given the very marginal gains over my other investments ,it didn`t seem worth the perceived risk. Given their rather amateurish appearance .

trenchwars

I got a reply from them saying that they had temporarily withdrawn the ISA due to high levels of demand.

Steve_xx

ceredigion wrote: »

You`re not alone there Steve.
Look at this product twice ,not long after it was introduced for the first time and then again just before it was withdrawn for the second time. Both occasions ,came to the conclusion that given the very marginal gains over my other investments ,it didn`t seem worth the perceived risk. Given their rather amateurish appearance .

Yes, there's just something about it that makes me feel uncomfortable. I may be totally wrong in this but my instinct tells me "if in doubt, do nowt". The state of the website and the fact that someone on here had to help guide them through amendments to their text terms did little to assure me. I'm sure it'll all pan out well for DotCom but I'm just not happy in my mind to take the plunge.

Peteremin

The reason this offer does not appear on MSE is two fold, Credit Unions cant afford to sit on large sums of cash, unless they can make the capital work, this Credit Union is growing and hence does not want to grow too fast and bring in too much money too fast, that it can't lend out.

Also you need to pay to get your offers on here, in case you thought that Martin became well off by virtue alone, we all need to make money!

I saw this ISA offer on the St James Place investment list, bona fide enough for you?

Archi_Bald

Peteremin wrote: »

Also you need to pay to get your offers on here, in case you thought that Martin became well off by virtue alone, we all need to make money!

I reckon you got that wrong. Did you read http://www.moneysavingexpert.com/site/moneysavingexpert-finance?

Peteremin wrote: »

I saw this ISA offer on the St James Place investment list, bona fide enough for you?

Not that they have any pedigree or credibility in recommending cash ISAs, but have you got a link for that please?

Steve_xx

Peteremin wrote: »

Also you need to pay to get your offers on here, in case you thought that Martin became well off by virtue alone, we all need to make money!

Let's hope that you don't find yourself landed with a hefty lawsuit for libel.

MARTYM8`

Just as an update but DotComUnity credit union has written to its members today wishing them a Happy New Year and confirming that their cash ISA is temporarily closed to new deposits for existing members. It hadn't of course been open to new members for sometime as this thread indicates. Apparently they need to build up their capital reserves given their recent rapid growth.

Whether this will change before the end of the tax year is unclear.

Here are the relevant sections in the letter.

"According to the regulators “DotComUnity Credit Union is the fastest growing Credit Union in the UK”. The board, management team and the staff would like to take this opportunity to officially thank you for being part of this continued success story.

The successful growth, has propelled your Credit Union through several regulatory tiers. Such growth requires us to develop a greater capital reserve. This is now our main driver and focus to allow your Credit Union to meet the regulators requirements of the higher tier.

As part of this process, we have taken the decision to temporarily close the Cash ISA and not to accept any new deposits from our new and existing members. To compliment this decision we are working with the regulators to put in place other temporary restrictions. This alliance with the regulators will allow us to focus on the development of our infrastructure and the foundation of the Credit Union"