Charged for closing credit card account

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thedaras

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I have posted on the correct forum asking if this is the norm.

But here I have to let off some steam!

My niece who had just finished off paying a 2000euro credit debt,phoned to talk to them about closing the account.

She had 15 euro left to pay off.

They told her that once she had paid 45 euro they could close it.

what the hell!! She has to pay 30e to close the account!! Something to do with a government stamp duty.

Now this is not doing people whom are in debt any favours.Its a disgrace!
 
A disgrace indeed but, unfortunately, one of those things one signs up for when one takes on a credit card. If the credit card account is closed during a year, then the stamp duty for that year needs to be paid.
 
Can she not just pay the €15 though and do nothing?

Is there a particular reason that the account has to be formally closed?
 
As this is a LOS thread about Government Stamp duty ..

50c per cheque !

WTF ?

There are many businesses that do not accept credit or debit cards, e.g. tradesmen (plumber, electrician), my childcare provider.

To avoid paying 50c per cheque, and I write at least one per week, I could resort to cash. But surely cash payments make it easier for those, so inclined, to avoid putting the income through the books and so avoid paying tax ?

A Government measure facilitating the black economy :rolleyes:
 
No I think at the time it was to make people use EFT more and to get more usage of automated banking.
 
Caveat said:
Can she not just pay the €15 though and do nothing?

Is there a particular reason that the account has to be formally closed?
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The €30 fee is an annual charge. If she pays the €15 and does nothing else, she will be charged €30 on 1st April next year and every subsequent year, as long as the account is left unclosed.
 
It is just one of the idiosyncrasies of the Irish taxation system. You'll find she is most likely also being charged €10 for her debit card and €10 for her ATM card or else €20 if she has a card which combines them both. So be annoyed about €50 instead of €30. Although €30 is an improvement on the €40 which it has been until recently.

These fees also suit the big credit card companies because nobody is going to close their account to move it elsewhere as they fear they are going to get stung for €30 to close it. If they pay the €30 they can get a certificate to send the new credit card company but that involves a lot of faith in things going right. It also stops people having more than one credit card, using the one which suits the transaction better.

Remember this method of discouraging people from using cash-free methods to spend has increased the country's reliance on cash, which the government was until recently paying the army to move about the country.

The banks, until recently anyway, have been private companies, their customers private individuals. I don't see why the government has seen fit to impose this tax. It would be like putting a €30 tax on having a card to get a DVD out of Xtravision.

Stupid narrow-minded badly-run backwater republic.
 
terrontress said:
It is just one of the idiosyncrasies of the Irish taxation system. You'll find she is most likely also being charged €10 for her debit card and €10 for her ATM card or else €20 if she has a card which combines them both. So be annoyed about €50 instead of €30. Although €30 is an improvement on the €40 which it has been until recently.

These fees also suit the big credit card companies because nobody is going to close their account to move it elsewhere as they fear they are going to get stung for €30 to close it. If they pay the €30 they can get a certificate to send the new credit card company but that involves a lot of faith in things going right. It also stops people having more than one credit card, using the one which suits the transaction better.

Remember this method of discouraging people from using cash-free methods to spend has increased the country's reliance on cash, which the government was until recently paying the army to move about the country.

The banks, until recently anyway, have been private companies, their customers private individuals. I don't see why the government has seen fit to impose this tax. It would be like putting a €30 tax on having a card to get a DVD out of Xtravision.

Stupid narrow-minded badly-run backwater republic.
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Couldnt agree with you more:D

Funny thing is though she has another credit card.

This happened when she changed from one credit card company to another one due to a longer term interest free offer.

The original card was to be paid in full by the new company,but while this was in process a transation ie;the 15 euro went through on the old card.ie;after she had agreed the amount with the new company.

Thats how she ended up with this last transaction,and then went to pay the 15euro and close the account,at that stage they told her ,that to close it she would be required to pay the 30e!!MADDNESS.So in essence she now has two credit cards both of which can be used up to the limit!!

She did get that cert you mention.

I dunno sometimes I just lose faith in this banana republic...
 
Staples said:
The €30 fee is an annual charge. If she pays the €15 and does nothing else, she will be charged €30 on 1st April next year and every subsequent year, as long as the account is left unclosed.
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Ah yes the 'line rental' of the banking world :rolleyes:
 
My OH is on the verge of closing her account too and I was wondering if the bank would try to hit her with a charge like the OP.

Surely if the yearly charge is taken out on April 1st then you are fully paid until April 1st 2010? And there should not be a charge for closing it?

Why is the OPs niece being charged now?
 
RMCF said:
Surely if the yearly charge is taken out on April 1st then you are fully paid until April 1st 2010? And there should not be a charge for closing it?
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No, it works the other way around. Charge in Apr 2009 is for the year 2008/2009, hence why it has to be paid now as she won't still have the card in april 2010 when the current charge is due.
 
Stamp duty is tax, you don't want the banks facilitating tax evasion by not collecting it. The government brought this in a few years ago and the banks don't like it because it slows down the move away from cash which is more expensive than either automated payments or cheques.
 
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