# BoI Change Definition of "interest free period" for Credit Cards



## Lightning (16 Jan 2014)

BoI have [broken link removed] on what makes up an interest free period for credit cards. 

In a nutshell, more transaction types are excluded from an interest free period. 



> Interest
> (b) Interest Free Periods.
> (i) Cash advances: There is no interest free period for cash advances or cash
> advance fees and we will charge interest from the date the cash advance
> ...


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## Brendan Burgess (16 Jan 2014)

Hi Ciaran 

Very interesting. 

So do they charge a one off fee for cash advances and interest?  Seems a bit much.


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## pator (16 Jan 2014)

CiaranT said:


> Cross Border Handling Fees: There is no interest free period for cross border
> handling fees and we will charge interest from the date the transaction is posted
> to the Account.



Thanks for the update

So on this one, if you buy something on tinternet from UK then interest will kick in  straight away?  As in even before you get the credit card bill. 


Time to search out credit card best buys thread!


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## Yakuza (17 Jan 2014)

> (i) Cash advances: There is no interest free period for cash advances or cash
> advance fees and we will charge interest from the date the cash advance
> transaction is posted to the Account, unless your Account is in credit to fully meet
> the *cash advance and the cash advance fee*.


 
If I read that correctly - they now charge you a cash advance fee even if your card is in credit? (Charging you for taking out your own money???) That's a nasty change if that's the case.


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## Lightning (17 Jan 2014)

Brendan Burgess said:


> So do they charge a one off fee for cash advances and interest?  Seems a bit much.



Yeah, all customers, even "interest free customers", must pay both a fee and interest.


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## Brendan Burgess (20 Jan 2014)

So if you take out €1,000 on your Bank of Ireland credit card, you will be charged €15 ( 1.5% subject to a minimum of €2.54 per transaction) whether you are in credit or not. 

If you are not in credit, you will be charged 26% APR - say 2% a month.


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## Brendan Burgess (20 Jan 2014)

> (ii) Cross Border Handling Fees: There is no interest free period for cross border
> handling fees and we will charge interest from the date the transaction is posted
> to the Account.



This is an extra fee of 1.75%  for every payment and cash withdrawal in a currency other than euro. 

So if I spend the equivalent of €1,000 in sterling or dollars, I will be charged €17.50. And I will be charged interest on the €17.50. 

A lot of people who pride themselves on paying no interest on their credit card, will now find that they are being charged interest. The amounts will be small but very irritating.  €17.50 @ 26% for one month would be about 40 cents.


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## callybags (20 Jan 2014)

pator said:


> Thanks for the update
> 
> So on this one, if you buy something on tinternet from UK then interest will kick in straight away? As in even before you get the credit card bill.
> 
> ...


 
I saw this as well and thought it strange.

I will try and clarify from Bank of Ireland later and will put up their response.


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## Brendan Burgess (20 Jan 2014)

At first, I thought that this would only affect people spending money in the UK or America on their credit card. But it's much wider than this. 

If you buy something online in dollars or sterling, you will be hit with a cross border handling fee of 1.75%.  So if a Bank of Ireland customer buys a book in dollars for the equivalent of €20, they will be charged a cross border handling fee of 35 cents.  

Now BoI will be charging interest on the 35 cents. It will only work out at around 1 cent a month, but people will be furious when they see these charges.


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## Brendan Burgess (21 Jan 2014)

I got an update from Bank of Ireland's Press Office 



> Here is clarification:
> 
> [FONT=Calibri, sans-serif]_*For an oversees purchase  that incurs a cross border handling fee, the fee will be incorporated  into the purchase transaction and treated with the 'up to 56 days grace'  as is the case today. Therefore no change here.*_[/FONT]
> 
> [FONT=Calibri, sans-serif]_*If a customer takes out cash  oversees and a cross border fee is charged (outside eurozone), this is  incorporated into the cash advance transaction and falls into the new  cash change, effective 18th March. Cash interest  will be charged from the posting date of this transaction.*_[/FONT]



They will need to revise their notice. 

Brendan


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## TarfHead (21 Jan 2014)

Brendan Burgess said:


> .. from Bank of Ireland's Press Office
> 
> .. an oversees purchase ..
> 
> .. takes out cash oversees ..


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## Brendan Burgess (21 Jan 2014)

Sorry TarfHead

I don't see the point of your post? 

Brendan


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## Lightning (21 Jan 2014)

Brendan, well done for clearing this up with BoI.


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## Yakuza (24 Jan 2014)

The press issue has "oversees" instead of "overseas".  Another indication in the decline of the standard of English.


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## Persius (13 Feb 2014)

If the interest for overseas (non Euro?) cash advances kicks in immediatly, how can you ensure that you pay the full bill?

E.g. I withdraw £200 on 17 March, so interest starts being calculated from that date. I receive bill on 30 March, with some interest added. If I pay the full sum on the bill by 15 April, will I have cleared everything? Or will the additional interest from 30 March to 15 April appear on my next bill?


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## selfbuilder (14 Feb 2014)

Brendan Burgess said:


> I got an update from Bank of Ireland's Press Office
> 
> 
> 
> ...



That update from the press office is completely different from their updated terms and conditions that I received today with regards the cross border handling fees being subject to interest from date of purchase.  Is there any other credit card that doesn't charge interest if you pay the bill on time?


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## Brendan Burgess (14 Feb 2014)

Persius said:


> If the interest for overseas (non Euro?) cash advances kicks in immediatly, how can you ensure that you pay the full bill?
> 
> E.g. I withdraw £200 on 17 March, so interest starts being calculated from that date. I receive bill on 30 March, with some interest added. If I pay the full sum on the bill by 15 April, will I have cleared everything? Or will the additional interest from 30 March to 15 April appear on my next bill?



You will be charged interest from the date you draw the money to the date you clear it. So you will be charged interest from 30 March to 15 April. 

You could overpay your bill slightly which should clear the interest.


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## Brendan Burgess (14 Feb 2014)

selfbuilder said:


> That update from the press office is completely different from their updated terms and conditions that I received today with regards the cross border handling fees being subject to interest from date of purchase.



Could you scan them and email them to me at brendan @ this site. 

AIB charges a cash advance fee, but no interest if it's cleared on time. 

However, to avail of an interest free period generally with AIB, you must clear your balance in full two months in a row. 

Brendan


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## selfbuilder (14 Feb 2014)

Brendan Burgess said:


> Could you scan them and email them to me at brendan @ this site.
> 
> AIB charges a cash advance fee, but no interest if it's cleared on time.
> 
> ...



I have sent you a copy of the new terms that I received with my credit card bill this morning.

Enjoy.


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## Brendan Burgess (14 Feb 2014)

Thanks Selfbuilder

That is the same as the notice they put on their website. Either it or their press office is incorrect.

Very sloppy by them.

But as they don't separate out the purchase price from the cross-border handling fee, I presume that the notice is incorrect, and that the press office is wrong. 

Brendan


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## aamusername (15 Feb 2014)

> I presume that the notice is incorrect, and that the press office is wrong.



Now I'm even more confused.  Do you mean that the notice is correct and the press office is wrong?

If the press office is indeed wrong, I'll be looking at moving my credit card as I really only use my credit card for online purchases in Sterling.


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