Dot ComUnity Credit Union - ISA

Ed-1

Steve3S13 wrote: »

So come the start of the new ISA year I shall apply for a new ISA somewhere else, set in motion the transfer and see what happens.

I did not print out a hard copy of the flyer. I would appreciate a copy if anyone has one.

Pity this is happening as they were always pretty quick to answer any e-mails I sent

http://www.dotcu.org.uk/assets/images/ISA_A5_AGM_leaflet_HR.pdf

http://www.dotcu.org.uk/creditunion/savings/terms-and-conditions.html

MARTYM8`

Ed-1 wrote: »

http://www.dotcu.org.uk/assets/images/ISA_A5_AGM_leaflet_HR.pdf

http://www.dotcu.org.uk/creditunion/savings/terms-and-conditions.html

Thanks for those direct links - which provide me with a little more re-assurance. I hadn't seen the terms before in detail.

However they aren't directly linked to the savings section of their site and the managed accounts webpage containing their other accounts has broken links too. Hopefully their new website will deal with these issues - as you really should be able to navigate to them easily on their website.

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

http://www.dotcu.org.uk/creditunion/managed-accounts/

Archi_Bald

Ed-1 wrote: »

http://www.dotcu.org.uk/assets/images/ISA_A5_AGM_leaflet_HR.pdf

http://www.dotcu.org.uk/creditunion/savings/terms-and-conditions.html

Thanks for those links.

Anyone who wants these docs should save / print them now, given that there's apparently a new website coming imminently.

Porcupine

I would be very careful with the terms and conditions, etc, because they changed as time went on. I applied for membership on 5th November based on the ISA access conditions on the webpage (90 days notice or 90 days loss of interest), application went through, came back to the same page a few days later and the text of the conditions was different (90 days loss of interest only). I have saved files of both versions.

I could have argued my position but, as I hadn't started the ISA transfer at this point, chose to cut my losses and walk away.

My screenshot of the old T&C is from 2014-11-05 10:37:41 in case that's useful to anyone. The newer version is still up:
https://www.dotcu.org.uk/creditunion/savings/1-year-3-cash-isa.html

darren72

Is anyone actually receiving replies from them, or are all questions on their Facebook, e-mail, on here remaining unanswered ?

darren72

With the lack of information coming from them, I've taken it upon myself to try and find out more.

I've done a search for the credit union and found this which is very interesting. The document is old, but it sounds familiar due to the restrictions mentioned:

http://www.fca.org.uk/your-fca/documents/supervisory-notices/fsa-supervisory-notice-2011-enterprise-the-business-credit-union-limited

Although the address is different, is this in fact the same credit union ?

More recently, the FSA website details the restrictions in place (along with the current Bournemouth address):

https://www.fsa.gov.uk/register/firmPermissions.do?sid=86924

Deposit taking requirement

With the exception of being able to continue to operate the managed accounts:

1. EBCU must not engage in its regulated activity of accepting deposits.

2. EBCU must not:

(i) make new loans, or make further advances in relation to, or otherwise vary the terms of, any existing loans;

(ii) redeem any member's shares;
(iii) repay any deposits;
(iv) effect any share to loan transfers, or
(v) without the written consent of the PRA, make any payment, or otherwise dispose of, deal with or diminish the value of any of its assets, except the payment of expenses incurred in the ordinary course of EBCU
business (by payment from any of its bank accounts or otherwise).

3. EBCU must within 14 days of the effective date:

(i) notify in writing all members of EBCU that it is no longer permitted to carry on accepting deposits and is subject to other restrictions placed upon it by the PRA; and

(ii) provide the PRA with a copy of the written notice sent to all members for its regulated activity pursuant to (i) above, together with a list of all members to whom the notice has been sent.

Archi_Bald

darren72 wrote: »

Is anyone actually receiving replies from them, or are all questions on their Facebook, e-mail, on here remaining unanswered ?

As my ISA doesn't mature for another 6 or so weeks, I have now decided to wait for a few more days before I contact the CU myself. That should give them some time to get their act together and come up with sensible and comprehensive answer to the open questions.

Interesting to see how they seem to be avoiding any public response on Facebook or here.

MARTYM8`

Archi_Bald wrote: »

As my ISA doesn't mature for another 6 or so weeks, I have now decided to wait for a few more days before I contact the CU myself. That should give them some time to get their act together and come up with sensible and comprehensive answer to the open questions.

Interesting to see how they seem to be avoiding any public response on Facebook or here.

I assume you opened your ISA in April last year. While you might assume your ISA matures 1 year from the date you opened it (i.e. 6 weeks time) the terms and conditions Porcupine circulated last night actually say something different i.e. the maturity date is ‘the 5th of the month following your maturity date’. This of course makes no sense – it should say the 5th day of the month after the month in which your fixed rate term ends.

I remember questioning this at the time – but I was told that was the case. So essentially whether you opened your ISA on 6 April or 30 April your maturity date (i.e. when you can withdraw your funds without penalty while retaining your 3% interest in full without the 90 day penalty) is 5th May. So potentially everyone who opened an ISA in the first wave last April will all have the same 5 May maturity date.

Now I think you can guess what this might mean – come 5th May all the April maturers might withdraw their money. Anyone heard the term ‘run on the bank’……..


"Maturity Date On the 5th of the month following your maturity date"


http://www.dotcu.org.uk/creditunion/savings/1-year-3-cash-isa.html

Steve3S13

I think a run on the bank is in the long run the only solution that looks like we will get access to our funds.
Their lack of caring for customers is abysmal.
Reading the previous post about the measures imposed on them I feel that they have no way to run the business. No money in and no money out, wages etc to be paid. Only one way to go as far as I can see is down.

MARTYM8`

Steve3S13 wrote: »

I think a run on the bank is in the long run the only solution that looks like we will get access to our funds.
Their lack of caring for customers is abysmal.
Reading the previous post about the measures imposed on them I feel that they have no way to run the business. No money in and no money out, wages etc to be paid. Only one way to go as far as I can see is down.

I am just wondering generally if the restrictions that have been imposed on them by the regulators around deposits and withdrawals actually apply to ISA investments – as opposed to their ‘managed funds’ (e.g. the everyday personal account). In other words if you just submitted a transfer request to another provider could they actually prevent you transferring – although the terms say you need to let them know.

Given they haven’t actually informed all members about the restrictions (are they still in place?) – they are presumably in breach anyway of the regulators requirements above. It is evident from posts on here that a number of members never got the 16 January email ‘continuing our focus on 2015’ which had this hidden in point 6 of the attachment without any reference in the covering email.

You do also wonder who on earth thought it was sensible to have so many Fixed rate ISA products maturing on one day – yes its easier to organising paying the interest but its not exactly prudent in terms of cash management! I hope they aren’t giving any staff annual leave in the first week of May!