# Is this legal? Pavilions Swords 'charging' €3 a month for voucher



## stymied! (20 Dec 2010)

HI, 

bought €50 voucher in the Pavilions shopping centre last saturday. Noticed afterwards a sign saying that vouchers will be subject to a 'charge' of €3 per month for every month the voucher remains unused. 

so, €50 voucher today will have a value of €14 in 12 months time (€3*12months). 

According to the website, vouchers are supposed to be valid for three years. 

google 'pavilions.ie and giftcards to get to link..
 
no mention of €3 monthly 'charge'...


Is this a legal practice? Can they really do this?


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## Scotsgirl (20 Dec 2010)

That means that it would run out in 16 months.  I've never heard of this before.  Definitely doesn't sound legal.  I would call and ask them about it.


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## Brendan Burgess (20 Dec 2010)

Very unusual. 

There is no mention of this type of charging on the National Consumer Agency's website. I would say that they would be interested in this

http://www.consumerconnect.ie/eng/Hot_Topics/Guides-to-Consumer-Law/Gift-vouchers/

Brendan


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## Complainer (20 Dec 2010)

Dundrum tried this a few years back, but pulled back from it after a bit of a fuss was made.


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## DrMoriarty (20 Dec 2010)

This is not a new wheeze; see this thread from 2006.

At the time, Dundrum Shopping Centre backed down and cancelled the charges. I see that the website of the Dundrum "GiftCard" issuers ([broken link removed]) has since diasappeared, and that this crowd's [broken link removed] is currently offline, too. 

_[Edit: post crossed with Complainer's]_


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## Scotsgirl (20 Dec 2010)

But how can they say it is valid for 3 years when it's quite obviously not.  Unless you spend at least €108 or more on vouchers!  Yes, I'm sure the NCA would be interested in this.


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## cloughy (20 Dec 2010)

saw something in Dundrum on Friday, that after 12 months their gift card incurs a €3 monthly charge, so looks like they are re-introducing this charge, 

It is not right that they charge you just because you don't use the voucher, since you paid cash for it in the 1st place in advance.


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## Slash (20 Dec 2010)

There is nothing illegal about this. As long as the buyer is made aware of the terms and conditions, you have a choice to purchase or not.


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## Brendan Burgess (20 Dec 2010)

cloughy said:


> saw something in Dundrum on Friday, that after 12 months their gift card incurs a €3 monthly charge, so looks like they are re-introducing this charge,
> 
> It is not right that they charge you just because you don't use the voucher, since you paid cash for it in the 1st place in advance.



That seems to me to be a fair balance. It's certainly a lot fairer than letting them expire after 12 months.


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## tiger (20 Dec 2010)

I would argue that the €3 a month is interest, effectively making them money lenders.
I would then ask them if they're licensed by the central bank, and if they're aware that they can be fined up to €63K and/or up to 5 years in prisonment under the Central Bank and Irish Financial Services Regulatory Authority Act 2003?


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## gabsdot (20 Dec 2010)

I think the interest starts to incure after 12 months. This is the case with Blancardstown SC vouchers.


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## Brendan Burgess (20 Dec 2010)

tiger said:


> I would argue that the €3 a month is interest, effectively making them money lenders.
> I would then ask them if they're licensed by the central bank, and if they're aware that they can be fined up to €63K and/or up to 5 years in prisonment under the Central Bank and Irish Financial Services Regulatory Authority Act 2003?



it would indeed be a very strange argument as they are not lending you any money.

The best line of attack is if they are  not prominently advertising the charge.  If it's prominently advertised, then it's a bad product, but not illegal.


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## tiger (20 Dec 2010)

Yes, I suppose it's more like a deposit account with a negative rate of interest!


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## huskerdu (21 Dec 2010)

tiger said:


> I would argue that the €3 a month is interest, effectively making them money lenders.
> I would then ask them if they're licensed by the central bank, and if they're aware that they can be fined up to €63K and/or up to 5 years in prisonment under the Central Bank and Irish Financial Services Regulatory Authority Act 2003?



I strongly object to what they are doing, but they are not charging interest.
It is very clearly a monthly fee.

In the case of Dundrum, it was a prepaid Mastercard with a monthly charge. Presumably in the Pavalion, it is the same. 

As Brendan said, once they make this fee clear before purchase, it is up to consumers to use their power to walk away and make clear that they will 
not accept these T&Cs.  

Dundrum shopping centre backed down in the face of the complaints.


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## mcaul (2 Jan 2011)

[broken link removed]

this answers everything. €3 charge applies only afteer month 12.

Also, its a prepaid mastercard and can be used wherever mastercards are accepted worldwide including all online stores - the branding is purley that, just branding.


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## Time (2 Jan 2011)

The payzone prepaid mastercard has a fee if left dormant after 3 months, so it is hardly a new charge. Use the card once a month for something small and you can avoid the charge.


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## MarySmyth (2 Jan 2011)

*why worry- don't support rip-off businesses*

I wouldn't argue about rights and wrongs on this matter- simply vote with your 2 feet! Move on...


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