Dot ComUnity Credit Union - ISA

Steve_xx

Steve3S13 wrote: »

I did but then (May 14) going back on reading this thread now I wanted to double check that they were still registered and had not got to a situation that they were no longer registered.
Can they end registration?
I could find nothing now, that is what I'm referring to, the current situation not how it was back then
Steve

I applied for their ISA last year. Then somehow felt uneasy due to their website not looking too cracky with spelling and terms and conditions errors, etc. I investigated a bit further and I considered that they may well be unable to handle the huge influx of cash that they might have if their 3% bearing ISA became too popular. I felt that they were simply too small to be able to handle it. So on balance I decided not to venture there.

You say you have placed 100k there. That is substantially in excess of the 85k protection that is offered by the FSCS. Why did you do that?

As soon as it is possible, if I was you, I would withdraw enough funds from Dot Community to take your balance to less than 85k. That way, your remaining balance with be fully protected under the FSCS.

Archi_Bald

Steve_xx wrote: »

You say you have placed 100k there. That is substantially in excess of the 85k protection that is offered by the FSCS. Why did you do that?

As soon as it is possible, if I was you, I would withdraw enough funds from Dot Community to take your balance to less than 85k. That way, your remaining balance with be fully protected under the FSCS.

It's in 2 ISAs, so must be 2 people, and each of them has £85K protection.

Stop panicking, the FSCS protection is still there.

Steve_xx

Archi_Bald wrote: »

It's in 2 ISAs, so must be 2 people, and each of them has £85K protection.

Stop panicking, the FSCS protection is still there.

There's no real problem then. Just a bit of hassle to go through if things do go wrong. I'm not panicking about it, due to the fact that I don't have any savings with them!

Archi_Bald

Steve_xx wrote: »

I'm not panicking about it, due to the fact that I don't have any savings with them!

My 'don't panic' was mainly addressed at Steve3S13

Steve3S13 wrote: »

I looked at the registration of the FSA but could only find an old pdf showing a previous problem in 2011. Are we sure they are registered?

The registration is with the FCA and the PRA as the FSA no longer exists. You need to look for "Enterprise The Business Credit Union Limited". Their registration number is 213820.

NB. I have about £60K in there myself, with no intention to withdraw even if I could.

gwapenut

I intend to leave mine there too. All I am gambling is the interest, which wouldn't be paid if they collapsed. And I'm not losing 3%, I'm losing the pitiful rate I would get elsewhere.

I reckon if enough people sit tight, things will be fine. At the end of the day this has apparently arisen because they have grown and as a larger organisation need to be more responsible and have larger reserves. This can only be a good thing for long term stability and makes them a less risky investment than a year ago.

But I have 3 ISAs maturing this year so can afford to be pragmatic while not having access to part of my money. Appreciate it's not good for those who were relying on access.

Steve_xx

gwapenut wrote: »

I intend to leave mine there too. All I am gambling is the interest, which wouldn't be paid if they collapsed. And I'm not losing 3%, I'm losing the pitiful rate I would get elsewhere.

I reckon if enough people sit tight, things will be fine. At the end of the day this has apparently arisen because they have grown and as a larger organisation need to be more responsible and have larger reserves. This can only be a good thing for long term stability and makes them a less risky investment than a year ago.

But I have 3 ISAs maturing this year so can afford to be pragmatic while not having access to part of my money. Appreciate it's not good for those who were relying on access.

The interest would be be paid up to the point of collapse, I believe.

Steve3S13

Archi_Bald wrote: »

It's in 2 ISAs, so must be 2 people, and each of them has £85K protection.

Stop panicking, the FSCS protection is still there.

Yep it's two people, even I'm not daft enough to go over the £85k

Thanks for the help on the registration thing, I feel much happier now and won't worry about cashing in anytime soon
thanks
Steve

MARTYM8`

Lets wait and see what happens when this two week period is up.

They are promising a flashy new website and a dividend payment for members. They might even have details of their interest rates for existing accounts as well - because my only proof I am getting 3% for my one year fixed rate is the stuff I printed out months ago.

But as has been said my concern is what will happen in April when the one year is up for many ISA savers - there could be massive withdrawals all at once unless the rate is good for reinvestment.

hgt

Well I for one will be transferring my ISA out in April if the new interest rate isn't significantly better than what's available elsewhere.

Does anyone know if I were to transfer out right now (presuming I could). Would they pay interest up until the date of closure or nothing at all until my 1 year is up?

Something just smells very fishy with DCU at the moment - OK I understand they need to increase their capital position, so surely they either need to bring in more deposits or reduce what they lend out. So how does stopping accepting deposits help matters?!

Plus their communications really are very poor, essentially all they have done is make all their investors worry something is wrong, and as a result they risk a lot of money being withdrawn as soon as possible - so that really won't help matters for DCU.

Let's hope we're all worrying over nothing!

Steve_xx

hgt wrote: »

Something just smells very fishy with DCU at the moment - OK I understand they need to increase their capital position, so surely they either need to bring in more deposits or reduce what they lend out. So how does stopping accepting deposits help matters?!

Let's hope we're all worrying over nothing!

It may be that they have a problem in actually knowing what to do with deposits. If they go on taking them but don't manage to invest in vehicles that will provide enough return to pay the depositors then that means trouble I guess.

Some of their problem will probably be because they are a very small entity personnel wise. And so with huge influxes of funds one has to wonder how they are able to manage that.

But until they show their hand, we're really just trying to second guess at the true situation. At the end of the day the FSCS will step in to take care of any real problem.