Credit Card annual charge?

Remember get whacked with a €40 fee last Aprilish for the credit card, just wondering does this still stand?
Thinking of cancelling it anyway...if i do will they still charge me?
How much is it?

It is still €40 and you'll still be charged as it is paid in arrears.

But if you don't cancel it before 1st April, you'll be liable for the €40 next year too.

Just to clarify- Applied this morn to Tesco to transfer bal from existing CC. Should Tesco accept my application I then cancel my old CC and just get charged €40 once this year??

CC stamp duty

No - if you cancel your old card you will have to pay €40 for the old card. Then on 1st April you will have to pay €40 on the new card. In the budget it was announced that this would no longer happen but as yet, no changes have been made.

Re: CC stamp duty

Hi

Any update on this pls ?

It seems, MBNA are still trying to stiff my "better half" for a double €40 tax, because she wants to close her existing MBNA card & begin using her new Pigsback (MBNA !) card

Seems a complete rip off, is this due to delay in producing specific guidelines by our good friends at Revenue Comm perhaps ?

Thanks

G>

Re: CC stamp duty

It's due to the existing legislation.

Basically the providers have to give a list of people who held an account *at any time during the year* up to something like April 4th to Revenue and submit €40 per account while they are at it.

Mrs Garretod (if she goes ahead and moves) will be on the list twice if she swaps cards at any stage during a year. This is anti-competitive and this is why it is being addressed.

Until the legislation is changed this will continue to be the case. I don't know when the legislation is going to be changed, but remember that just because something is talked about during the budget speech doesn't make it happen until someone gets down and modifies the legislation (or standing orders, or bye-laws or whatever needs to be modified) and it is officially enacted. Decentralisation was talked about as part of a budget speech and see how far that has got . . .

The only way to avoid the double charge (until the legislation is changed at which point I expect all banks to be shouting it from the rooftops) is to close one account towards the year end, wait until the new year (April-ish) has passed and then apply for the replacement card. Applying too early could land you with the €40 charge if they accidentally set the card up before the cut-off date. If the account exists then the €40 is due.

z

Re: CC stamp duty

garrettod:

It seems, MBNA are still trying to stiff my "better half" for a double €40 tax, because she wants to close her existing MBNA card & begin using her new Pigsback (MBNA !) card

Click to expand...

My wife was told something similar when she wanted to change from her MBNA card to the 10.9% rate. She was told she would have to sign a new application form and would end up paying double stamp duty.

She told them this was ridiculous as both cards were issued by MBNA.

In the end, she asked to speak to a supervisor and threatened to close the account and go to a competitor and they eventually relented - they gave her a new account number and switched the balances. They had to send hew a new card, but she didn't have to pay the stamp duty on the double, as far as I know.

Re: CC stamp duty

Hi Guys

Many thanks for the helpful posts above, I'll get her to make "the phonecall" pointing out how some credit card providers pay the first year's government levy etc

Cheers

G>

re cc €40

I recently recieved my Ulster Bank cc statement which included a €40 'loyalty bonus'.
(I used it a lot in 2004 because I was abroad for most of it. Don't usually use it so much. Was recently thinking about moving to tesco cc, as I believe they will pay the govt charge each year)

Does this mean that my €40 govt charge is now paid until April this year ?

Or will the govt charge be added in the coming weeks/months ?

(BTW, garrettod, did you get the private message I sent to you ? i.e. in your ezInbox ?)

Credit Charge charge

Was there any mention of this in the Finance Bill that was published during the week??

I've just been approved by Ulster Bank, but I want to wait and find out what the story is re switching in the same year.

Hi

The relevant section from the Finance Bill is here

16. Stamp Duty Exemption for Switching of Financial Cards
The Bill provides for a stamp duty exemption from the double charge arising from the switching of financial cards such as credit cards, charge cards, ATM cards and Laser cards. Consultations by the Department of Finance and Revenue have taken place with relevant
bodies about the timing and scope of the legislative provision.

The changes provide that a person will only be liable for one stamp duty charge in a particular year where they have switched either the financial product or provider during that year.

This change will come into effect from 2 April 2005 in relation to credit cards and charge cards and from 1 January 2006 for all ATM, debit (Laser) and combined cards.

Click to expand...

How?

How will the administration of this work?