Dot ComUnity Credit Union - ISA

FOREVER21

Thanks for your kind words of reassurance.

I hope you are right, and I realise that they will soon be in the hands of the Administators but I know I still will be on edge until they are formally placed into Administration on or before 18th, when theFSCS. kicks in.

My concern stems from my reading of the role of the Administrator (I know a little learning is a dangerous thing etc!) but it seems to be that their main aim is to try and see if the organisation can saved and perhaps restructured and carry on business.

I doubt if DotCom can be saved but you never know, still at least we now have a date for the solution.

Steve_xx

FOREVER21 wrote: »

Thanks for your kind words of reassurance.

I hope you are right, and I realise that they will soon be in the hands of the Administators but I know I still will be on edge until they are formally placed into Administration on or before 18th, when theFSCS. kicks in.

My concern stems from my reading of the role of the Administrator (I know a little learning is a dangerous thing etc!) but it seems to be that their main aim is to try and see if the organisation can saved and perhaps restructured and carry on business.

I doubt if DotCom can be saved but you never know, still at least we now have a date for the solution.

It is highly unlikely that it would have gotten to this stage if it was thought it could be saved. Those types of discussion will likely have already been had some while ago. Saving it would likely involve a merger. There will be some rescue in some part, ie those people who have borrowed from the Credit Union will still have to pay their debt back, to someone, and that someone will be appointed by the Administrators. I can't see this outfit being in any way asset rich, so one less hurdle fro the Administrator. The FSCS will be taking the biggest hit here and as I said, if the Icelandic debacle is anything to go by they will act pretty fast.

jimjames

Steve3S13 wrote: »

It's true, some of us have been in contact for some time with the FSCS and their representative has confirmed that a company has submitted to the Courts, Notice of Intent to be appointed Administrators for the ETBCU

http://www.fscs.org.uk/news/2015/may/fscs-aware-of-situation-with-enterprise-in-business-credit-union-in-bournemouth/

It's interesting on that link how many other credit unions have also failed. It's not something that seems to hit the news like a bank would but maybe they are substantially riskier than larger organisations.

Gizmo70

jimjames wrote: »

It's interesting on that link how many other credit unions have also failed. It's not something that seems to hit the news like a bank would but maybe they are substantially riskier than larger organisations.

Most of them seem to be less than 500, last big one was 2000 customers in July 2013. It was fairly quiet for about 12 months, it has only been in the last 6 months or so that there has been a number of defaulters.

Archi_Bald

This article is slightly dated but I wonder what Lord Collins of Highbury (Labour), opposition spokesperson for Work and Pensions and chairperson of Enterprise The Business Credit Union, ever did to prevent DotComunity becoming insolvent?

Lord Collins, will you ever tell us?

I think I know the answer, but I will keep asking until I get a satisfactory one from you. In the meantime, I will vote accordingly this Thursday.

EDIT: Lord Collins of Highbury is also mentioned as the Chairman of the EBCU in the last available Financial Statements of the EBCU for the period ending 31st March 2014 (a copy of which I have on safe repositories, so no point in anyone deleting this post [a copy of which I also have in a safe place]).

FOREVER21

Archi_Bald wrote: »

This article is slightly dated but I wonder what Lord Collins of Highbury (Labour), opposition spokesperson for Work and Pensions and chairperson of Enterprise The Business Credit Union, ever did to prevent DotComunity becoming insolvent?

Lord Collins, will you ever tell us?

I think I know the answer, but I will keep asking until I get a satisfactory one from you. In the meantime, I will vote accordingly this Thursday.

EDIT: Lord Collins of Highbury is also mentioned as the Chairman of the EBCU in the last available Financial Statements of the EBCU for the period ending 31st March 2014 (a copy of which I have on safe repositories, so no point in anyone deleting this post [a copy of which I also have in a safe place]).

The report makes interesting reading.As far back as March 2014 if not earlier the Directors were failing to reach the regulators requirements,yet they were allowed to continue in business until the restrictions applied in December 2014.

At that time, even then it wasDotcom who put voluntary restrictions in place. I question what on earth were the regulators PRA/FCA doing to let it drag on untll May of this year.

Also it was the Directors who finally applied to be placed in administration not the regulators putting them in administration!

Also the report mentions that the auditors had difficulty reconciling records of individual deposits with the totals held. Heaven knows how complete will the membership details be that are passed to FSCS. Judging from past posts it appeared that some members received communications whilst others didn't.

Forti

FOREVER21 wrote: »

Also the report mentions that the auditors had difficulty reconciling records of individual deposits with the totals held. Heaven knows how complete will the membership details be that are passed to FSCS. Judging from past posts it appeared that some members received communications whilst others didn't.

I'm bracing myself for my records getting 'lost'. I've made scans of my account statements ready to send to FSCS, I suggest others do the same.

MARTYM8`

Forti wrote: »

I'm bracing myself for my records getting 'lost'. I've made scans of my account statements ready to send to FSCS, I suggest others do the same.

You can request a statement to be emailed to you via your online login. Of course that’s assuming there are people still there to process it!

There is no sign of the interest payments due yesterday having been credited to my account (i.e. us 5 May maturers) – I expect we will have to await the FSCS to calculate and pay that.

I do however think there is a risk their records may be in a bit of a mess – I got letters others didn’t, emails others didn’t but didn’t get emails others did. Also got my letter and statement in March – but not the brochure for their 5% social impact bond – others got the latter but not the former.

So I would recommend requesting an up to date statement or printing the records out from your online account – just in case!

Gordon_T_2

Can anyone tell me if this money is returned to us, will it be outside of the ISA framework for re-investing?

Archi_Bald

Your money will not lose its ISA wrapper if you follow the instructions that FSCS will provide.