CC Gov SD paid on acct closure

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irishpancake

Guest
Just a query regarding the GSD paid on closing my AIB CC account.

Last Sept 2007 I closed my AIB CC account, and paid the €40 due at the time.

I got the statement from AIB to give to my new CC provider, and posted this to them.

This was a payment for SD due for the April 2007-Mar 2008 period.

Can anyone tell me have I overpaid, as the new rate of GSD for CC's is €30?

Am I due a refund, and if so, can I expect AIB to give me this without prompting from me?
 
The SD rate in force at the time was €40 so I guess that you were liable for that. I'm not aware of any facility for refunding €10 in this situation but ask AIB and Revenue just in case.
 
See below, taken from citizensinformation.ie
I suppose it could be a typo and maybe should actually read 'April 2 2008'.

The rate of stamp duty for credit and charge cards was reduced from 40 euro to 30 euro in Budget 2008. If you closed a credit card account on or after April 2 2007, and you were charged 40 euro stamp duty, you are entitled to a refund of 10 euro from the bank or financial institution.

I closed a CC this month and was charged €30 for the pleasure.
 
This is from fixmytax.com "The charges for ATM/Debit/Combined cards will take effect on the year ending 31 December 2007 and for Credit cards for the year ending 1 April 2008."

I closed my credit card with MBNA last month and they charged me €40. I'll get on to them on Monday to see if I'm due a refund.
 
michaelm

Thank you so much for that info :)

I will be on to AIB Monday morning.

I'd do anything for a tenner :D
 
Just an update on this.

I called AIB's Credit Card Customer Service number to claim my refund.

Unfortunately, the person I got tried to tell me that I was not entitled to the refund, as the charge was appropriate when it was levied. (Nov 2007).

I then quoted the citizeninformation.ie info.

She then got on to a Supervisor.

The story then was that AIB have set up a team to quantify customers entitled to this refund, and that the time-frame for repayment is currently unknown.

She said AIB would contact all those affected in due course.

I would like to know if Credit Card providers should have put a process into place to refund the over-payment by departing customers and if it is good enough for AIB to originally deny, and then to long-finger refunds which customers such as me are entitled to.

I know it's only a tenner, but surely the principle is the thing?
 
Not happy that AIB are doing all they can to refund those who paid €40 SD on closure of CC account. I e-mailed Revenue about this, and got the following response:

Dear Mr I. Pancake,

I refer to your email dated 30 January 2008.

The Minister for Finance announced in his Budget speech on 5 December 2007 a reduction in stamp duties chargeable on financial cards. The changes in the rates of stamp duty are set out in the table below.


Card Type____________________________ Old________________________________ New

Charge cards & Credit card accounts______€40_________________________________€30

ATM cards____________________________€10_________________________________€5

Debit cards___________________________€10_________________________________€5

Combined ATM/Debit cards______________€20_________________________________€10




To give immediate effect to the Minister's Budget announcement, the reduced rates are being applied, on an administrative basis by Revenue until the enactment of the Finance Act 2008.

In relation to credit card accounts and charge cards the change will take effect for accounts/cards chargeable to duty in 12 month accounting period ending on 1 April 2008 - i.e. from 2 April 2007, while in relation to ATM cards, Debit cards and Combined cards the reduction will have effect for cards chargeable in the year ending on 31 December 2007.

Section 114 of the Finance Bill 2008, published on 31 January 2008, confirms the new reduced charges for ATM/Debit/Combined cards take effect for the year ending 31 December 2007 and for credit card accounts and charge cards for the year ending 1 April 2008.

Following the Budget speech, Revenue consulted with the Department of Finance and advised the Irish Bankers Federation that on closure of a credit card, banks are to apply the reduced rate of €30 instead of €40 and provide a refund of €10 for customers who closed their accounts on or after 02 April 2007 and paid €40 duty in respect of the charging period 02/04/2007 to 01/04/2008.

In relation to the delay by your former credit provider in refunding €10 to you, I suggest you seek the advice of the Financial Regulator.

Consumer helpline Lo-call 1890 777 7777
Email consumerinfo@financialregulator.ie
Information Centre, 6-8 College Green, Dublin 2
(Opening hours from 9.30am to 5pm Monday to Friday)

Write to
Consumer Information Department
Financial Regulator
P.O. Box 9138
College Green
Dublin 2


Yours Sincerely,
Xxxxx Yyyyyyy
Financial Services (Banking)

Office of the Revenue Commissioners
Large Cases Division
Setanta Centre
Nassau Street
Dublin 2
Ireland
Click to expand...

I'm going to send this on to AIB and if they don't stump up quickly, I will go to the regulator or the Ombudsman.
 
I had forgotten about this until now...I just rang MBNA and the customer services rep said that because I had closed my account in December, before the budget, that I was not entitled to the refund!! I quoted some of the text from irishpancake's post, but there was no budging her.
 
Hey Boaber

Feel free to quote the e-mail which I got from Revenue, clarifying that CC providers are obliged to refund the €10 overpaid.

BTW, the bold text in Revenues reply to me was in the original mail.

I think it's pretty clear, you were not liable to pay €40. The Budget changes are retrospective for those who closed CC accounts, and CC providers must comply.

Revenue advised taking a complaint to the Financial Regulator in the event of non-compliance.

Let's face it, if you owed MBNA €10, they would penalise you pretty severely.
 
Good news.
...in relation to ATM cards, Debit cards and Combined cards the reduction will have effect for cards chargeable in the year ending on 31 December 2007.
Click to expand...
Am I right in understanding that this applies not only to closed accounts, but also to accounts which have remained open? Last January NIB charged us €10 for each of the (two) ATM cards issued on our joint current account. Should we only have been charged €5 on each card?
 
boaber said:
Got my €10 refund cheque today from MBNA - at last!. Hooray!!
Click to expand...

Well fair play.

I have not yet received the courtesy of a reply from AIB, shame on them.

It is amazing the lengths which this particular Bank will go to to avoid their legitimate duty to customers.

You have spurred me into further action, which I will report back on.
 
DrMoriarty said:
Good news.
Am I right in understanding that this applies not only to closed accounts, but also to accounts which have remained open? Last January NIB charged us €10 for each of the (two) ATM cards issued on our joint current account. Should we only have been charged €5 on each card?
Click to expand...
Yes. And yes, unless you actually have two ATM/Laser combined cards, in which case the charge NIB should apply in Jan '08 is €10 per card (this is what they correctly charged me).
 
Closed my account in Jan and got my cheque for a tenner from MBNA yest as well. This was withot any appology for overcharging!! When I closed the account I tried to tell them I should only be paying €30 but to no avail!
 
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