Dot ComUnity Credit Union - ISA

Mr_Doubtfire

I’m sure that in April/May last year DCUCU would have made certain assumptions regarding what percentage of their ISA customers would stay with the credit union once their fixed term ended. Those assumptions would then have been used in their planning for loans – i.e. number,size and length of the loans. The problem is that with the ‘voluntary’ restrictions and chaos of the last 3 months, one would assume that virtually all their ISA customers will withdraw their money either as soon as possible or come 5th May – thus leaving the credit union in a difficult situation to say the least!

darren72

If they were accepting deposits though, then they would presumably be getting new customers who will replace the ones that are likely to leave..

gwapenut

Also, if ISA customers have other forms of withdrawable funds, they may be prepared to take a punt on DCU. They know with the FSCS their money is safe, if perhaps inaccessible. This uncertainty wouldn't worry some, just as some savers are happy to take out five year fixes.

Does anyone know the past dividend performance of DCU? Their letter earlier this year was a little confused, talking about a dividend of 3% "last year" but for a "6 month" period. And then a 3.75% dividend "this year". Maybe there was a divi in Autumn 2013, then Spring 2014, with a gap until Spring 2015.

masonic

darren72 wrote: »

If they were accepting deposits though, then they would presumably be getting new customers who will replace the ones that are likely to leave..

I wonder how many new customers will be looking for ISAs in the future with the forthcoming changes to tax on interest. They would need to be table topping by some margin to bring in any new cash and they will have the likes of Santander 123, which may be paying 3% tax free from 2016/17, as the prime competition in many people's minds.

Steve3S13

and still no letter here............................................

Bhamstudent

FOREVER21 wrote: »

How the above squares with what Bhamstudent has been told by Neil is any ones guess.
Does anyone at DotCom really know what is going on?

Forever21 - this pretty much does square with what Neil has told me. In previous conversations he has said that they believe they have met the necessary funding criteria that would satisfy the PRA. Obviously something isn't going quite as smoothly as this would suggest - that or the PRA aren't very efficient. Who knows; only time will tell.

gwapenut

Bhamstudent wrote: »

Forever21 - this pretty much does square with what Neil has told me. In previous conversations he has said that they believe they have met the necessary funding criteria that would satisfy the PRA. Obviously something isn't going quite as smoothly as this would suggest - that or the PRA aren't very efficient. Who knows; only time will tell.

Yes, but the trouble is that this doesn't seem to be changing. The funding has been in place for a while, but still the PRA does not seem to accept it

colsten

gwapenut wrote: »

Yes, but the trouble is that this doesn't seem to be changing. The funding has been in place for a while, but still the PRA does not seem to accept it

Which simply means that Dotcon don't have sufficient funding, doesn't it?

FOREVER21

I sent an email to the PRA yesterday raising my concerns about DotCom and lack of progress asking for an update from them.

I am doubtful if they will reply, probably quote Data Protection Act, but thought I would give it a try!

MARTYM8`

colsten wrote: »

Which simply means that Dotcon don't have sufficient funding, doesn't it?

And in just over one week they are supposed to start writing to all their one year ISA account holders informing them of their maturity options (i.e. Tuesday 7 April being the 28 day notice for the 5 May mass maturities).

Someone is going to have to take some quick decisions on what is going to be offered to those account holders.

Assuming of course they stick to their previously published terms and conditions - which have of course now disappeared on their lovely new website! Reading the website now you would never even know our ISA accounts existed or that they used to offer them.

I see they have been busy updating the facebook page - their most recent post is about Zayn Malik and the next most recent is informing us the clocks go forward tonight. Interesting stuff I am sure - but what has that got to do with DotCon.