Dot ComUnity Credit Union - ISA

pafpcg

I wonder if this is the sort of thing that happened when building societies were being established a century or more ago? I'm planning to donate my £150 Clydesdale switching incentive to support this credit union, and if I get a 3% dividend next year I'll be delighted!

darren72

pafpcg wrote: »

I wonder if this is the sort of thing that happened when building societies were being established a century or more ago? I'm planning to donate my £150 Clydesdale switching incentive to support this credit union, and if I get a 3% dividend next year I'll be delighted!

If you do, remember to wait until they start accepting deposits again - No good doing it just yet...

MARTYM8`

pafpcg wrote: »

I wonder if this is the sort of thing that happened when building societies were being established a century or more ago? I'm planning to donate my £150 Clydesdale switching incentive to support this credit union, and if I get a 3% dividend next year I'll be delighted!

You might also want to check if there is a local credit union in your area that you can support. They do lots of good works too and pay dividends as well - maybe big isn't always best when it comes to banks and credit unions.

http://www.findyourcreditunion.co.uk/home

I strongly support credit unions - particularly ones which manage their finances well and don't stop their customers (many of whom will be on low incomes) from accessing their funds when they need them!

Joe_Bloggs

@pafpcg
There is a risk of getting of topic in answering this question. See :-
Here. Building societies main business was secured lending against a property as well as attracting interest rewards from depositors. The mortgage borrowers paid the depositors interest plus an amount to support the cost of the enterprise.
J_B,

FOREVER21

Can someone show me where they say you can't make withdrawals. I have not received any notification of this, on their credit union web page regarding opening new accounts ,they state they are not accepting deposits or making new loans but no mention of withdrawals.

Also on reading the 2 letters again they do indicate that the suspensions were" voluntary".

My main concern is the suggestion contained in one of their letters which seems to indicate that as the union grows another regulatory hurdle might crop up, if this is the case would the associated groups make another cash injection?
My fealing at present is to cash in early ( not very MSE ) and take the 90 day penalty rather than wait until April when I fear a large number of people might withdraw their funds, leading to another "voluntary" suspension.

I wonder if they were to refuse a withdrawal request without being able to demonstrate that a person had been previously notified of the embargo could a complaint be made to the FOS?

Forti

Steve3S13 wrote: »

Yep I'm up for this. how shall we proceed
Steve

I'm also interested in pursuing this with the regulatory authorities.

Regardless of the fact that they are a small organisation, the communications are appalling. We simply need clarification on when we are able to deposit and withdraw once again. In two letters they failed to address this.

So in terms of next steps:
1. Has anyone spoken with Dotcomunity within the last fortnight and had it confirmed that the deposit/withdrawal restrictions remain in place? We need to confirm this.
2. Has anyone had any experience of reaching out with the regulatory authorities? The letter says that Roger Marsh head of the PRA has been involved at looking at this. He might be a good place to start and hope he channels the communication to the right team.

If a member of Dotcomunity is reading this, you need to take action immediately. We need confidence that our money is safe and secure. We do not need a long waffling letter, we need a few short sentences with commitments and timelines.

darren72

The letter sent by e-mail from them dated 16th January, among other things said:

However the Credit Union will not:

4. Accept new savings deposits from new or existing members

5. Issue new loans to new and existing members

6. Allow existing members to withdraw from their savings accounts

Forti

darren72 wrote: »

The letter sent by e-mail from them dated 16th January, among other things said:

However the Credit Union will not:

4. Accept new savings deposits from new or existing members

5. Issue new loans to new and existing members

6. Allow existing members to withdraw from their savings accounts

This appears, however, to contradict the latest letter encouraging us to make additional deposits. This is why I think we need to contact them and get clarification.

Joe_Bloggs

The annual general meeting is a good place to focus on issues past and present and elect members to serve on the board for the future.

Has there ever been a Dotcommunity AGM ?

J_B.
AGM short for Annual General Meeting.

Porcupine

Joe_Bloggs wrote: »

http://www.bankofengland.co.uk/pra/Pages/supervision/creditunions/default.aspx

I wonder. That page talks about 'reserves' and 'interest bearing shares'. Interest bearing shares are what everybody who was promised a rate (eg 3%) has.

But where do the reserves come from? Is this money in the basic shares accounts that can't be withdrawn? Are customers using their own money to support the viability of their accounts? (A savings account being a debt from CU to depositor, of course).

If not, how do they acquire reserves? Money accrued from the difference between depositors and borrowers interest (ie business profit built up over time)? Cash from business investors? (But aren't all depositors and borrowers shareholders?)

I can't seem to find any mention of AGMs or accounts anywhere - anyone know how this works in credit unions? There are no accounts at Companies House for instance, and the Mutuals Public Register only has 'changes of rules' documents (last 2012).