Dot ComUnity Credit Union - ISA

colsten

No email for me either.

Steve3S13

no e-mails and no letters for me. Last letter was dated 12/2/15

Mr_Doubtfire

Have any of you seen the section on the revamped Dot Com Unity Credit Union website entitled "Our Regulatory Requirements"? It's the third option down on the About tab. It certainly makes for very interesting reading!

colsten

Not much they haven't told us before, and still the totally non-sensical position: they claim they have met their requirements but that they are still required to have 'voluntary' restrictions imposed on them.........how can the FCA let them get away with this?

I notice they are rebranding themselves on their website to EBCU.

gwapenut

Through the VIR, the Credit Union is unable to make new loans or change the terms of existing loans, accept new deposits or permit deposit withdrawals, with the exception of operating our Managed Accounts

Interesting that they can't change the terms of existing loans. Does this also mean by implication that they can't change the terms (interest rate) or existing savings?

Mr_Doubtfire

It would appear as if the Credit Union has accepted deposits of over £5M as they have to meet the Capital-to-Asset ratio of 5%. This ties in with what a member of staff told me that they had ISAs to the value of about £7M. At an interest rate of 3%, they are going to have to find approximately £200k for interest payments to apply to the cash ISAs at the start of May!

Porcupine

Mr_Doubtfire wrote: »

Have any of you seen the section on the revamped Dot Com Unity Credit Union website entitled "Our Regulatory Requirements"? It's the third option down on the About tab. It certainly makes for very interesting reading!

There's an EBCU website appeared as well - with accounts up to 31st March 2014. That's very interesting reading too!

http://www.ebcu.org.uk/financial-reports.html

Porcupine

Page 4 says:

DotComUnity_2014_accounts wrote:

Banking Summary

During the period to 31st March 2014 member deposits and ISA's have increased from £157,000 to £1,279,000. In the same period outstanding loans have risen from £46,750 to £881,000.

Since 31st March deposits including ISA's have already grown to £4,250,000 and loans have risen to £2,994,000. New loan requests currently running at approximately £600,000 month increasing by approximately 25% per month.

Regulatory information, Governance and Remuneration

The Credit Union has been working closely with the regulators, The PRA, FCA and others, to try to ensure all parties are acquainted with the aims and objectives of the Credit Union but also understand the relationship between the Credit Union and DotCommunity centres cic.

Over the past 18 months issues have arisen and concerns have been raised particularly regarding the production of the Credit Union's audited accounts.

The Credit Union and our auditors have had significant difficulties sorting out the previous regime's accounts and nominal ledger and until this was complete were unable to bring everything up to date. The Credit Union Board has tolerated this situation for much longer than it had hoped and is delighted that the audits are now finalised.

In consultation with the auditors the Credit Union board has now authorised the introduction of ICAP reporting on a weekly basis to complete and support detailed management accounts and reports produced on a monthly basis. The roll out of DotComUnity Centres cic new dashboard reporting will also help to provide the board with key information about all aspects of DotComUnity membership and member network (Branches and IAPs).

Date: 23 September 2014

http://www.ebcu.org.uk/site/uploads/March_2013_Audited_Accounts.pdf
(despite the URL that appears to be the March 2014 accounts)

Mr_Doubtfire

The 2014 Financial Statement is quite confusing as it looks like it has been compiled quite recently with a few comments describing the activities of the CU during the 2014-2015 financial year. I.e. When exactly did the deposits reach £4.25M? In May 2014 or December 2014?

What are the figures for deposits and loans now I wonder? The Financial Statements for the period up to 31st March 2015 should certainly make for interesting reading when they are eventually published!

Porcupine

The dateline on the statement as signed off by the accountants is 23rd September 2014, so that presumably covers the first tranche of ISA deposits as mentioned here, but not the second tranche when they reopened briefly in Oct/Nov 2014. Given that the ISA was only offered for those two discrete periods, I suspect the £4.25m figure includes everyone due to mature soon.