Dot ComUnity Credit Union - ISA

Porcupine

masonic wrote: »

This seems really hard to believe. The situation could drag on for some time and the FSCS will not pay any claims for compensation without a declaration that the credit union is in fact in default. Looks like they will have 28 days to refer the case to a tribunal, and might even have the right of appeal after that. Presumably accounts will remain frozen until after that process has been exhausted. Perverse as it sounds, the best outcome for depositors might actually be for the union to be declared insolvent as soon as possible so that the FSCS can kick into action.

I asked this question specifically of the DotComUnity rep in post #158 of this thread. They said they would find out and get back to us. I chased in #162 and commented further in #164 and #166. I never got a reply from DotComUnity.

To recap, the question was about something short of total failure. In a failure the FSCS gets invoked, depositors get their money back, end of problem. After Icesave the procedure got polished up a bit so it will probably work again (there's been no significant depositor protection events since that I recall, though individual IFAs go under all the time).

What my request was about was the institution being in some kind of zombie state: capital controls are in place so there are no withdrawals, but they're not 'dead' so there can be no funeral (to invoke the FSCS). This can drag on for some time. In the previous case EBCU (as they were branded then) eventually left that state after many months, however I was asking as to what the real-world implications of it were. Since everything was done by agreement with the FSA, what depositors see on the ground can be less draconian than the letter of the law on the paperwork. But I never got a reply on that score.

Forti

Some useful insight - particular thanks to Darren for reaching out to the FCA.

I'm struggling to see where we go from here. I don't see on the PRA how to contact us.

Is the next step the Financial Ombudsman Service? Their guidance seems to suggest the business has 8 weeks to deal with our 'complaint'. It has been just over 7 weeks since the initial restriction of withdrawing money was announced. I will give them a ring tomorrow since their call centre is open in the morning and see what they suggest.

Another option which may be worth considering is the media. Off the top of my head Radio 4's Moneybox programme may be interested and also the local media to Bournemouth - BBC South Today, Meridian or the Bournemouth Echo.

Steve_xx

This makes for good reading. A credit union in Northern Ireland went bust and it seems the the FSCS said that depositors would be paid out within seven days. However, this particular one has deposits of just 530k, so not sure if the amount in question would affect the payout timescale.

http://www.bbc.co.uk/news/uk-northern-ireland-29663245

Archi_Bald

Steve_xx wrote: »

the FSCS said that depositors would be paid out within seven days.

7 days is what they normally aim for when a bank, BS or CU fails.

http://www.fscs.org.uk/your-claim/how-long-will-it-take/

Huge disclaimer though: "The length of time each claim takes to process depends on a number of factors, some of which are entirely outside the FSCS's control"

Joe_Bloggs

Some past words from HM. treasury:-
https://www.gov.uk/government/consultations/british-credit-unions-at-50-call-for-evidence/call-for-evidence-british-credit-unions-at-50

The usual useless as before result was :-

https://www.gov.uk/government/consultations/british-credit-unions-at-50-call-for-evidence

It might be worth contacting the Arch Bishop of Canterbury in a credit union dispute arbitration.
J_B.

Archi_Bald

Joe_Bloggs wrote: »

It might be worth contacting the Arch Bishop of Canterbury in a credit union dispute arbitration.

Now I am definitely beginning to lose faith.

MARTYM8`

Archi_Bald wrote: »

Now I am definitely beginning to lose faith.

I remember seeing a letter somewhere from Eric Pickles to Oliver Letwin (the local Dorset MP where they are based) congratulating the setting up of Dot Community a few years ago. I also believe the Chairman is an ex Chair of the Labour party.

There is an election coming - so maybe if there is no resolution soon we could write to Mr Letwin for his views on what is happening. He is Camerons lead policy guru and is a Cabinet office minister.

If that doesn't work and the Archbishhop can't help we could always appeal to the Pope!

FOREVER21

In view of this crowds' lack of communication and all of us guessing what happens next ,I think an approach to Mystic Meg might be the best course of action!

darren72

Has anyone heard anything new from DCU and/or had any further replies ?

jimjames

I've not got any money with this crowd so it doesn't directly affect me but has anyone contacted the media.

I'm sure a site like This is Money/Daily Mail would be interested in picking up the story.