American Express Blue Card

Short piece in todays Sunday Times "Bank of Ireland ditches Amex"

BOI also quotes the "high costs associated with ensuring the Amex Blue card portfolio complies with the (EU) payment services directive", whatever that is, as a reaon for axing the card.

According to the piece BOI had just 3,500 Amex blue card holders.

The piece is critical of BOI for not offering incentives that proved successful elsewhere (e.g. Amex red card)
 
As had been said before, I'd say a major reason why the customer numbers are so small is that the bank simply didn't promote it enough. I never once saw a leaflet or an advert about the 1% cash-back, even in any Bank of Ireland branch.

Anyway, David Courtney rang me last week and confirmed that there will be no refund of Stamp Duty as Revenue don't permit such refunds, apparently. Don't know why they would be precluded from making an unrelated goodwill payment but there you go.
 
With all due respect to David Courtney, that has more than a whiff of BS to it, like certain other parts of the letter. Stamp duty is refunded in respect of unused cheques, for example, so why wouldn't an annual charge be refundable on a pro rata basis?

Well, BoI have certainly removed any remaining incentive I had to keep my MasterCard account with them. If 3,499 other Amex blue card holders feel the same way, their decision not to apply a (€15?) goodwill payment may well be a false economy.
 
DrMoriarty said:
With all due respect to David Courtney, that has more than a whiff of BS to it, like certain other parts of the letter. Stamp duty is refunded in respect of unused cheques, for example, so why wouldn't an annual charge be refundable on a pro rata basis?
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Hi Dr. M.,

Not an apologist for David Courtney or BofI - I'm sure they're well able to make their own points. But it strikes me as credible that Revenue would disallow refunds of Credit Card Stamp Duty. Isn't it the case that Stamp Duty on all cards is collected at the same time each year and that Revenue moved to stop people cancelling their card just before the Stamp Duty fell due, then re-applying shortly afterwards? Might have something to do with this.

But I still don't see why a goodwill payment couldn't be applied for the inconvenience of having one's credit card closed and not replaced with an equivalent.
 
But... couldn't they set the expiry date for next April. If they have to go now with just two and a half weeks notice then I'm with Dr Moriarty on the goodwill basis.

Didn't the Government put the charge on the card not the person?
 
The card ending in April was an obvious one. Or BOI could simply add €15 to the cashback as compensation for the duty. Shoddy service.

However the demise of Amex Blue is in its own way a victim of this ridiculous duty as well as lack of advertising from BOI. Competition in the marketplace is reduced as people are unwilling to open other credit card accounts.
 
Shoddy service, I agree. Imagine a reputable company such as AMEX allowing a franchisee dilute their brand by treating customers in this way.
 
I'm going to jump for the AIB Platinum card. Am I right in saying that I don't have to pat stamp duty if I transfer my account rather then opening a new one. Is it just a matter of calling into my local AIB branch?

Thanks
 
Consolidated Stamp Act:
http://193.178.1.79/1999/en/act/pub/0031/sec0124.html#partix-sec124
Includes credit card definition:
“credit card” means a card issued by a bank to an individual having an address in the State by means of which goods, services and cash may be obtained by the individual and amounts in respect of the goods, services and cash may be charged to the account.

and provision eititling credit card operator to apply charge to account:
(7) A bank or a promoter, as the case may be, shall be entitled to charge to the relevant account the amount of the stamp duty payable under this section by reference to that account or by reference to the charge card, company charge card or supplementary card to which the account relates and may apply the terms and conditions governing that account to interest on that amount.

------------------------------------------------------------------
Finance Act 2003 ammendment, changing the basis of charge from cards valid 1st April, to cards valid at any time during a 12 month period ending 1st April: http://www.irishstatutebook.ie/2003/en/act/pub/0003/sec0140.html#partiv-sec140
(i) in subsection (1)(b), by substituting “maintained by the bank at any time during the 12 month period or any shorter period, as may be appropriate, ending on that 1st day of April” for “maintained by the bank on that 1st day of April”,


I can't see any reason why Bank Of Ireland (a) Bear the cost of the stamp duty themselves or (b) Ask their customers for a pro rata payment on their account or (c) Postpone cancelling card until 31 March 2010.
 
Deano said:
I'm going to jump for the AIB Platinum card. Am I right in saying that I don't have to pat stamp duty if I transfer my account rather then opening a new one. Is it just a matter of calling into my local AIB branch?
Click to expand...

I could be wrong on this but I think you'll have to pay Stamp Duty on your new AIB card.
 
For all you number fiends out there - my letter was # 2875, member since late 2003, surname R.

I think it's poor show on the BOI side, but given that they don't exactly have a whole lot of competition here, it makes sense that they would drop a scheme which has them giving away a % of their take for nothing.

Although, I guess it's not just the 1% that was the problem, because they could have dropped the 1% and kept the card. My guess is that given the lean times we are in they are trimming any extra costs they don't need and having a seperate Amex infrastructure (distinct from the rest of the credit card business) didn't make sense any more.

z

p.s. thanks to the AAM crew (possibly LiamD or Marion) for pointing out the benefits of the blue card long ago. I don't know how much I've 'made' back on the 1% in the last few years, but it's been a fair whack - well into 4 figures. Given that most supermarkets, hotels, airlines, car hire companies, etc . . . take it, I used it whenever possible. It was all the sweeter when paying for a group dinner, or a work hotel stay, or any other large expense not paid for by me. Free money has got to be good, no matter what way you look at it.
 
Urgh, I just read the letter again and saw the *


* Payment of Moneyback will only be made to customers who are not in breach of the credit card agreement . . . yada yada yada . . . at the end of the programme cycle.

I *may* have missed my repayment this month. It went in yesterday but I normally aim to have it on by the 20th to be sure, to be sure. I am going to be a very unhappy zag if they don't pay me the €170 I have sitting there.

z
 
RSMike said:
I also got the letter yesterday, What's completely laughable is BOI quoting lack of popularity for the card for its withdrawal, i.e effectively blaming the AMEX brand !

"This decision was based on a number of factors but primarily due to the low number of customers taking up the card in the last number of years"

Hello!, Does anyone in BOI think the "lack of poularity" in the last number of years may be down to the fact that BOI itself stopped advertising, and removed all references to the card from its website in 2007!, :rolleyes:
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LDFerguson said:
As had been said before, I'd say a major reason why the customer numbers are so small is that the bank simply didn't promote it enough. I never once saw a leaflet or an advert about the 1% cash-back, even in any Bank of Ireland branch.
Click to expand...
It is not just a matter of their not promoting it. They actively blocked people from applying. There was an AAM thread 2-3 years ago (iirc) from a guy who was trying to get the card, and chased his BOI branch and the Amex Blue customer support line, but they still wouldn't give him an application form to apply for the card.


zag said:
It was all the sweeter when paying for a group dinner, or a work hotel stay, or any other large expense not paid for by me.
Click to expand...
Oh they were such happy days indeed.


Letter no 1139 - got the card in the early noughties - surname H

Would anyone like to post Mr Courtney's email address so we can all follow up?
 
Any complaints whether by e mail, letter or phone to BOI follow their formal complains procedure.

Tesco going back a few years had an offer where they paid the Govt levy out of their own profits. Ulster Bank also offered free student accounts with credit card again with no Govt charge because they paid it themselves.

Revenue do not stipulate that we as card holders must pay the levy. The bank must pay it on our behalf then they charge it to us on our account.

It is not the amount that bothers me it is the principal of it all and the way they handled the situation.

As AMEX Blue was the 'unofficial' membership card of AAM if AAM has a preferred charity then should they decide to do the decent thing and pro rata the payment then I'll gladly donate it to the charity.

Hi Zag, (hope it was you) never got to thank you for your help in planning a trip to New Zealand a few years back. It was a great success and thanks a million for the invaluable travel tips.
 
sumatra - there's only one zag and that's me, so you were right first time. I hope you enjoyed your time in NZ and glad I could help. That's why I joined AAM in the first place.

z
 
This is indeed tragic news.

I am very disappointed by the BoI decision.

As an avid Blue customer since its inception having the card untimely plucked from my wallet is a blow too far. I agree that the levy should not be borne fully by the customers.

We have been loyal customers and have probably, in fairness, sold it better here on AAM that BoI did in its branches.

Let's have some fair play BoI.


Marion
 
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