Dot ComUnity Credit Union - ISA

hgt

Closed group or not... I think it's important to keep this thread active... even if only to warn potential future savers.

If you Google 'DotComUnity ISA', the first item returned is a link to this thread.

It sounds to me like DCU are going to try and re-brand themselves to ECBU or whatever, plus we suspect they are deleting old posts from this forum. It's as if they want to forget this part of their history and start up again in a different guise.

So I think it's important that other potential savers are warned so they don't end up in the same situation as us.

To a certain extent I have some sympathy with DCU as if the regulators hadn't taken such an interest most probably everything would have been ok, but now savers have been scared by the withdrawal restrictions which will lead to a mass exodus of ISA money, plus now the regulators have ruled that any future ISA will pay a dividend rather than real interest, DCU are unlikely to attract many new ISA customers. So the most likely outcome is a collapse.

But then you have to remember why DCU are in this mess in the first place.... they chose to be greedy, to grow too quick and to make inadequate provision for capital funding.

But for me the main reason I lost confidence with DCU is because of all the bending of the truth in recent months (almost verging on outright lies) to pretend all was well, and a complete lack of communication with us loyal savers.

If I had a crystal ball, I think the most likely outcome here is that when the (so called) 'voluntary' restrictions are lifted, a handful of savers will successfully get their ISA's transferred out, then DCU will run out of money and the regulators will have to step in.

veryintrigued

From a total outsiders perspective having this thread still visible (and still bumped up) does keep the issue in the public domain more for not only current DCU customers but also potential ones.

It could also serve to highlight how much discussion and due diligence on similar (i.e. non DCU) products was performed when people are making product decisions.

From a MSE perspective has anyone been in touch with them to see if they are able to make this thread still unlocked but such that posts older than a certain date cannot be edited / removed? And also highlight to Martin such that he can use any influence in your favour (and ensure this thread remains)?

Hope I'm not coming across as voyeuristic.

gwapenut

hgt wrote: »

But for me the main reason I lost confidence with DCU is because of all the bending of the truth in recent months (almost verging on outright lies) to pretend all was well, and a complete lack of communication with us loyal savers.

+1. They've lost my trust. They act no more transparently than the banks they claim to differ from.

hgt wrote: »

If I had a crystal ball, I think the most likely outcome here is that when the (so called) 'voluntary' restrictions are lifted, a handful of savers will successfully get their ISA's transferred out, then DCU will run out of money and the regulators will have to step in.

My thoughts too.

colsten

Just to clarify: I wasn't suggesting that this thread should die but there are certain aspects that I would be quite happy to share with other DCU ISA holders but not with a forum that the world has access to.

Mr_Doubtfire

As far as I can see there are two main issues here:-

1. Firstly (and most obviously), those people who need access to their money have been unable to access it for almost 4 months due to the 'voluntary' restrictions. This could cause some savers huge problems - for example if they want to buy a house or if they end up in debt due to unforeseen circumstances because they couldn't access their emergency funds.
2. The second issue is only really coming to the fore now. For the other savers who don't need access to their funds in the short term, this situation up to this point in a way hasn't been too perilous as their capital and interest is guaranteed through the FSCS protection. However what happens if the restrictions remain in place for another several months after the ISAs mature? If DCU proceed to convert everyone's ISAs to dividend paying ISAs upon maturity, effectively everyone is being forced into giving them an interest free loan with no defined end date. Yes the capital may be protected (if the claims by DCU are true), but any dividend most certainly won't be should they go bust, or even if they scrape through this mess still trading.

As someone who up until this point has been in the second category, I now see the huge potential for DCU to completely screw me over. My view is that each ISA holder needs to write to DCU to tell them that they do not accept the proposed changes to their ISA accounts. Either DCU has to find a way of giving people access to their funds upon maturity or they have to let people keep their original ISA T&Cs. In my view there are no other options available.

Ed-1

Someone I know realised that the DCU ISA was the 2nd cash ISA they'd contributed to in the same tax year (14/15). Don't know how they're going to sort that one out...

MARTYM8`

Ed-1 wrote: »

Someone I know realised that the DCU ISA was the 2nd cash ISA they'd contributed to in the same tax year (14/15). Don't know how they're going to sort that one out...

Could they suggest DotCon are holding their funds illegally as they invested them illegally - and call HMRC and the police in?!

One quick question for us all - the maturity letters give no indication of a minimum term for any funds rolled into their new dividend based ISA. Has any one confirmed if the new rollover account is instant access (in theory of course) or is it a one year term - or is it just unclear?

I just hope I won't have to rely on part 5 of the old terms - and have to leave the ISA in my will.....seems death may be the only way to get your funds back as the account must be closed immediately and you can't make any more deposits:D. Just joking - but this could go on for some time as in principle they have our funds on hold with an effective interest free loan to them.

'5 On your death the capital value of the ISA and the accrued gross interest is payable to your beneficiary. From the date of your death the ISA will receive interest paying at least the net (with tax deducted) rate of your ISA rate. No further deposits into the account can be made and the account must be closed once probate or letters of administration has been granted'

Nednats

MARTYM8` wrote: »

'5 On your death the capital value of the ISA and the accrued gross interest is payable to your beneficiary. From the date of your death the ISA will receive interest paying at least the net (with tax deducted) rate of your ISA rate. No further deposits into the account can be made and the account must be closed once probate or letters of administration has been granted'

Someone should phone them about their recently dead relative.

Just found some paper work... I think they held an account with you...

gwapenut

Clause 5 was actually very insightful of them.

Yet another warning sign that we all ignored, that our money would be tied up with them for quite some decades ....

Archi_Bald

bsms1147 wrote: »

Posts are being deleted from the history of this thread.

I am suspicious.

Me too. My post with the maturity letter has vanished, and it wasn't me who deleted it. Nobody told me they were deleting it, and why.