Dot ComUnity Credit Union - ISA

Steve_xx

ratechaser wrote: »

It's an interesting idea though - if true, would that also mean the FSCS would delay compensation of the principal amount until the original maturity date as well? Because if not, AND they paid out on the full term interest, then I think I need to start looking for a few borderline insolvent institutions where I can open up 5 year savings bonds and hope for an early collapse

It could be the new version of carpetbagging!

Well yes, quite so. But somebody earlier has posted to the effect that they have been paid interest for a forward period. It's baffling!

masonic

Steve_xx wrote: »

Well yes, quite so. But somebody earlier has posted to the effect that they have been paid interest for a forward period. It's baffling!

They also posted that they had to wait until well after their original maturity dates to receive their money.

Steve_xx

masonic wrote: »

They also posted that they had to wait until well after their original maturity dates to receive their money.

Yes that is so and that's a bit more baffling since the FSCS would surely pay out at a time of their choosing???

I remember with the Icesave/Kaupthing fiasco that I didn't have to do anything. It all just seemed to happen automatically without intervention from me.

masonic

Steve_xx wrote: »

Yes that is so and that's a bit more baffling since the FSCS would surely pay out at a time of their choosing???

I remember with the Icesave/Kaupthing fiasco that I didn't have to do anything. It all just seemed to happen automatically with out intervention from me.

Just dug out the email I received from FSCS about the compensation. Looks like badger was spot on (my emphasis)...

Dear Customer

Icesave accounts with the London branch of Landsbanki Islands hf

This email has been sent to you because records available to us indicate that you hold an account with Icesave. If you do not hold such an account, please contact us by email at enquiries@fscs.org.uk.

This email invites you to log on to your Icesave account to be paid compensation in respect of your deposits with Icesave under the electronic payment process managed by the Financial Services Compensation Scheme (FSCS). We previously wrote to you about how the process would work on 4 November 2008.

For the FSCS to pay you compensation, you will need to take the following steps:
1. Log on to your account as usual through the Icesave website which is now operational. You will need to confirm your User ID, unique password and memorable information, in the normal way. If you need to reset your password, you can do so at the log in screen.
2. You will be asked to verify the account balance of your Icesave account(s) and the details of your selected nominated account to which the payment is to be made. By completing the process you will instruct a payment of the Icesave account balance shown to your selected nominated account by an electronic transfer. The money should then arrive in your nominated account within approximately five working days.
3. If you hold an Icesave instant access account or ISA account, you will be paid compensation after you confirm your agreement to the terms for payment, including the transfer to the FSCS of all your rights in respect of your Icesave deposits against Landsbanki Islands hf, the Icelandic Depositors’ and Investors’ Guarantee Fund (DIGF) and any other relevant party. This transfer will not affect your deposit in any way and is a legal requirement for the FSCS to be able to recover money from Landsbanki Islands hf, the DIGF or any other relevant party.
4. For ISA holders, the same process will apply as for instant access account holders. The money you held in your ISA will not lose its tax-free status if you follow this process. An ISA certificate will follow by post to allow you to reinvest that sum in an ISA with another provider by 5 April 2009. You should receive your ISA certificate within 2 weeks of claiming compensation using the electronic process and you will have to give this certificate to your new ISA provider when you open your ISA with them.
5. If you hold an Icesave fixed rate savings account, you will be offered the option of payment of your deposit through the electronic payment process. Alternatively, you will be able to opt to receive the principal amount of your deposit, together with accrued interest up to the maturity date, at the end of the fixed term. If you choose this latter option, then the electronic process option is not available to you. However, you should still log on to the website and tick the appropriate box to confirm that this is your wish. At that time, we will be notified that you wish to wait until the end of the fixed term and we will then send you an application form to complete and return to the FSCS. This process will be slower, although we aim to complete this process so far as possible within 6 weeks of receipt of a completed application form, with payment following the maturity date of the account. You should also be aware that if you hold a fixed rate savings account that pays interest on a monthly, quarterly, or annual basis, and you decide to hold that account until maturity, you will not be paid any interest prior to maturity.
6. Irrespective of what type of Icesave account you hold, if you choose to participate in the electronic payment process for that account, then the payment amount you receive will be the principal sum deposited plus interest up to and including 7 October 2008.
If you have more than one account with Icesave, you will need to repeat the process described above for each account.

If you do not seek payment within one month from the date of this email, you will be contacted separately by the FSCS with details of how to make a claim for your deposits with Icesave. This will be through a paper-based application process once the electronic process is complete. This process will be slower (we aim to complete this process so far as possible within 6 weeks of receipt of a completed application form), but you will receive the same amount no matter which process you use (unless you hold a fixed term deposit and opt to await payment until the end of the term, as explained above).

If you experience any difficulties with the process, please seek assistance by calling Icesave’s Customer Services Helpline on Tel. 0845 605 6050.

Further details are also available on the FSCS website (https://www.fscs.org.uk).

Yours faithfully
FSCS

Steve_xx

Oh well, carpet bagging here we come!

masonic

Steve_xx wrote: »

Oh well, carpet bagging here we come!

I don't see how this is carpet bagging. You get the same amount of interest if the institution fails, but will just have to wait longer to receive it. If you take out a 5 year bond, you'd be waiting 5 years even if the institution failed within a month of you opening the account.

colsten

masonic wrote: »

Looks like badger was spot on (my emphasis)...

You'd expect that from an eagle eye ex tax inspector:D

Steve3S13

I don't mind waiting another 4 years to be paid out.
It's what I was expecting with DotCon anyway

Steve_xx

Steve3S13 wrote: »

I don't mind waiting another 4 years to be paid out.
It's what I was expecting with DotCon anyway

You'd be ok as long as the FSCS doesn't go bust!

FOREVER21

Steve3S13 wrote: »

I don't mind waiting another 4 years to be paid out.
It's what I was expecting with DotCon anyway

DotCon. !! Too true