Dot ComUnity Credit Union - ISA

Ed-1

pafpcg wrote: »

As one of the optimists on DotComUnity, I have "donated" one of my switching bonuses to the basic share accounts to do my bit to support a credit union. Easy come, easy go?

So are they accepting deposits into basic share accounts?

masonic

Ed-1 wrote: »

So are they accepting deposits into basic share accounts?

There's no restrictions on those as they are not deposit accounts. Money invested into the basic share accounts is used to purchase deferred shares in the union. I wouldn't want to be a shareholder right now.

pafpcg

Ed-1 wrote: »

So are they accepting deposits into basic share accounts?

Yes. Money has been credited to the account today and shows in the on-line statement.

But, as I understand it, unlike the ISA accounts, the Basic Share account is NOT guaranteed by the FSCS so may be at risk if the credit union is liquidated. I think the money in the Basic Share accounts forms part of the reserves of the credit union, which is why the members have been asked to top-up their accounts to a minimum of £10.

colsten

Ed-1 wrote: »

So are they accepting deposits into basic share accounts?

As these are not subject to the FSCS protection, presumably they are not subject to the "voluntary" restrictions. I am not surprised Doctcon took the money. They'd probably take your firstborn, too, if they could.

colsten

pafpcg wrote: »

As one of the optimists on DotComUnity, I have "donated" one of my switching bonuses to the basic share accounts to do my bit to support a credit union. Easy come, easy go?

You make it sound as if a credit union has deserved our support by virtue of being a credit union. Nice try but I'll pass with thanks.

hgt

Hmm... a forum Newbie suggesting we all donate some cash to DotCon with no guarantee of ever seeing it again! An undercover DotCon mole perhaps?

They won't be getting another penny out of me, that's for sure! I think my money would be safer if I were to invest in a company making chocolate teapots than put it into DotCon's share account!

hgt

hgt wrote: »

Hmm... a forum Newbie suggesting we all donate some cash to DotCon with no guarantee of ever seeing it again! An undercover DotCon mole perhaps?

They won't be getting another penny out of me, that's for sure! I think my money would be safer if I were to invest in a company making chocolate teapots than put it into DotCon's share account!

Though then again... I've not had my letter yet, so in theory I don't know what a dire state of affairs DCU are in!

FOREVER21

pafpcg wrote: »

In the course of an email exchange today, this is what I was told:

"The current position regarding ISA's is; we have met the Capital-to-Asset ratio of 5% and we have been in communication with the regulators to lift the restrictions - they have asked for clarity on a couple of items, which we have responded and we are awaiting their reply."

And after I queried on when:

"We are working tirelessly to assure they will be re-open for the 5th April - if this, for some unexpected reason, is not met we will notify all
members."

This was clarified as BEFORE 5th April (to allow me to invest the unused part of my 2014/15 ISA allowance).

As one of the optimists on DotComUnity, I have "donated" one of my switching bonuses to the basic share accounts to do my bit to support a credit union. Easy come, easy go?

But surely if they have met the Capital /Asset ratio of 5% as the regulator requires, then why do they still need more money to be paid into an unregulated share account?

My wallet is staying in my pocket for now!

masonic

FOREVER21 wrote: »

But surely if they have met the Capital /Asset ratio of 5% as the regulator requires, then why do they still need more money to be paid into an unregulated share account?

It's the same sort of process as with a Ponzi scheme.

If you look at the FAQ for the basic share account, it states: "If you decide that you would like to leave the Credit Union and no longer remain a member, you will need to withdraw all monies held within any Credit Union account."

So those members leaving are going to need to be repaid their monies, and how else will that be funded except through new capital paid in by other members. Otherwise those 5% capital reserves are going to get depleted pretty fast and they'll be back at square one.

Archi_Bald

pafpcg wrote: »

As one of the optimists on DotComUnity, I have "donated" one of my switching bonuses to the basic share accounts to do my bit to support a credit union. Easy come, easy go?

Sweet Jesus, you haven't really deposited any more of your money with these people?