Hang on... Wasn't the Credit Card tax suppose to change?

S

soc

Guest
I've been wanting to change credit cards for a while now.. and with the recent budget was hoping that that would lead to an easy transition BUT NO! The bloody thing is still there!! >:

If I transfer my balance from my credit card to a new one, I will incur €40 charge from my 'old' credit card and a €40 charge for my 'new' credit card on 01/04/05.
OR
I could pay off my entire credit card now, and not apply for another one till AFTER 01/04/05.

I mean this is RIDICULOUS! I want to switch to another Credit Card of more value, yet this damn tax is throwing any benefit of changing cards out the window. Does this not stifle competition, and the opportunity for consumers to avail of 'deals'?? I mean didn't Mary Harney last year blame the consumer for not encouraging competition, by just paying the asking price rather than shopping around??? Your damned if you do and damned if you don't! :mad

Have the government changed their mind about amending this tax to enable consumers to switch cards more easily??

-soc
 
Does clarify the situation at all?
Financial cards (such as credit, ATM, laser cards)

It has been proposed that the 40 euro per annum stamp duty rate on financial cards will be abolished when switching financial providers in the same year. (In the past, some people were being charged 40 euro stamp duty each time they switched providers in a year). Consultation will need to take place with the relevant providers before this can be implemented. This new improvement will be introduced in the Finance Bill.

Unless there are any changes in the Finance Bill, the charge in relation to credit cards and charge cards will take effect from 2 April 2005, while the change in relation to ATM cards, Laser cards and combined cards will take effect from 1 January 2006.
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Thanks Clubman...

We'll see what happens post 02/04/05...
Has the Finance Bill already been amended??
 
I think that the relevant changes are still only at the bill stage and have not yet been passed into law. I always assumed that budget changes effected in this way came into effect soon after the budget (e.g. in January or February following the December budget these days) but maybe it sometimes takes longer before it is fully debated/amended etc.
 
If there is an increase in duty ie spirits, beer, petrol etc then the change usually happens overnight. Like the terminal at Dublin Airport, where there's a will etc etc. The minister and government obviously don't regard this priority as it will actually cost the exchequer once enacted.
 
ReWasn't the Credit Card tax suppose to change?

hi
just read the link for the finance act and i am more confused now then before. are they saying that you have to get a letter from the bank which you paid the stamp duty on their card.
and this will exempt you from paying it on your new card???
can some one help...really need to change card
j
 
Jules312

Wait until the 02 April to change. Hang in there!

Marion :hat
 
In the same situation myself. Just to be clear (and I apologise for being dim!), if I change credit cards after the enactment of this new Act on 1st April, while having to pay the €40 yearly fee on the old card, I will not be charged another €40 simply to close that account. And nothing is then due on the new card until April 2006. Correct?
 
Wait until the 02 April to change. Hang in there!
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I'm just worried that the darn thing won't change, and I'll either have to pay double tax (in Apr 2006, I will be charged for OLD card and NEW card)... or have to stick with my current card for yet ANOTHER year!

-soc
 
For what it's worth you don't have to clear a credit card balance to close the account.

So my advice would be close the account shortly before the end of March. You'll pay EUR40. If you can clear the balance, well and good, if not then don't, tell them you'll clear it in April or May. But you want the account closed NOW.

Get a new card (if you can) in April and transfer the ballance, or clear the balance on the original card by some other means.

You won't pay EUR40 on the new card until the following year.

The comment about Mary Harney chastising the consumer for not shopping around is quite correct. This is a tax on shopping around and a tax on electronic transactions, two things the government claims to be in favour of.

Never let it be said that this government isn't willing to put aside political and social objectives if the possibility of picking your pocket for a few extra quid arises.

But hey! At least we have a world class Health Service, so it's not like they're wasting the money. I mean imagine if with all these indirect taxes we still had people on trolleys in A&E.

-Rd
 
So my advice would be close the account shortly before the end of March. You'll pay EUR40. If you can clear the balance, well and good, if not then don't, tell them you'll clear it in April or May. But you want the account closed NOW.
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Do you know how HARD it is getting information from people!?! >:

I rang AIB to enquire as to whether I can close account at end of March and transfer balance in April. And the lady couldn't understand why I would do that!! :x I explained the situation and with uncertainty she said that it would only be possible if balance is fairly small - then she started questioning me about my current balance! I've made a large payment today, but as I have a non-AIB account it takes a couple of days to hit the CC - I told her this... and told her that my payments shouldn't matter at this time - all I wanted to do at this time was find out if I can or can't close cc account in March and transfer balance in April.

This whole situation concerning credit cards in Ireland is an absolute farce!!

-soc
 
I explained the situation and with uncertainty she said that it would only be possible if balance is fairly small
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I think I had a balance of Approx EUR2000 when I closed the account in the March following the introduction of the Tax, I paid off the balance a week or two into April, but I wasn't led to believe there would be any problem leaving the balance sit there on the closed card, If I had been so inclined.

Like walking up to the counter in the Branch the things you can and can't do have more to do with the person dealing with you than with any Rules of the Bank.

-Rd
 
Daltonr, whom did you have your 'old' credit card account with? And who did you open your 'new' credit card with?

The AIB lady asked me if I was changing to another AIB credit card - of which I said, "No". That certainly changed her tune... why would she do anything that will benefit the competition?

-soc
 
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