credit card tax

jimmycrackcorm

I had an MBNA credit card for a couple of years. I cleared the balance off late last year. I hadn't used it in a long time so I actually didn't get a replacement card in the last year.

I meant to close the account but forgot simply assuming that a cleared balance and no card was sufficient. Now MBNA are looking for €40 plus interest for the government tax (without even having an actual card). Worse still, even If I close the account I still have to pay another €40 as they say the tax is in arrears. So even if I have no actual card for well over a year, I still have to pay €80 in credit card tax.

Sam Vimes

well the credit card company have paid it for you so that seems fair enough tbh

pow wow

Have you contacted them about it? Surely if you didn't have a card (and they acknowledge that) then the Revenue can't levy a fee on a card that doesn't exist?

Savman

jimmycrackcorm wrote:

I meant to close the account but forgot simply assuming that a cleared balance and no card was sufficient.

You assumed wrong. "Forgetting" to close an account is not a valid excuse.

If you issues with Credit Card tax, don't blame the CC providers because its the govt. that introduced it.

Saruman

While there is nothing forcing you to pay it.. if you look for another credit card you may have problems as they could blacklist you.
Call them and explain but you will probably be better off putting it down as experience and know better next time.
Think about it in opposite terms... say you got a refund for something and it went on to your old credit card because thats what it was bought with. You no longer have the card but still have the account active. How would you feel if MBNA said, sorry you were not using the account and had no card so you do not get your money

Actually even if the account was closed and you got a credit to the card it would still be on their system and could be transfered etc.

jhegarty

MBNA are a ICB member , so forget a mortgage for the next 5 years if you don't pay

jor el

jimmycrackcorm wrote:

I had an MBNA credit card for a couple of years. I cleared the balance off late last year. I hadn't used it in a long time so I actually didn't get a replacement card in the last year.

As soon as the tax was charged to the card you should have received a bill. Did you receive a bill? The tax is also charged in advance so this year also has to be paid for, even if you cancel the card. Thank you FF/PD, the stealth tax coalition.

jimmycrackcorm

I'm resigned to being able to do nothing about it as the revenue.ie site clearly states that it is based on having an account. Just when I thought I got rid of MBNA screwing me for money, now the revenue get a dig in.

eth0_

I don't see why you are whinging about this, it is 100% your OWN fault, not MBNA's.

mathew

Duty is charged on Credit Card Accounts, not on credit cards themselves. This allows for multiple cards on the one account with only a charge of €40.

Revenue Site

muffler

mathew wrote:

Duty is charged on Credit Card Accounts, not on credit cards themselves. This allows for multiple cards on the one account with only a charge of €40.

Yeah thats the situation alright. Its no different than certain accounts with the banks - even if you never use the account you are still liable for maintenance charges/fees.

A quickie about MBNA. Not long after i got a card about 10 or 12 years ago I owed them something like £9 at the end of the month. I never got round to paying it and I just assumed that the interest would be added on to the £9 on the following months statement. They hit me with an additional £14 penalty fee for non payment of the min. amount which meant that the following month I owed them a bit over £23.

In fairness to them whenever I rang about it they cancelled the £14 penalty as it was my first "offense" but they made it clear that they wouldn't do so again.

Wertz

My mother had a smiliar problem with MBNA and all the shouting at call centre staff didn't get her anywhere....as mentioned if the account is open then you're liable. The only problem is that in my Mam's case she had gotten rid of the card nearly 5 years previously and was unaware there was any account still open (she was issued with neither cards nor statement)....when the tax came in 3-4 yrs back was when MBNA amde their demand for the first year's tax and the following year. To someone on a pension 80 quid tax is a lot to have to fork over through very little fault of your own.
BTW AFAIK you can't be charged interest on the levy...

That said, this is ALL the fault of the government....the tax/duty stifles competition in the market, negates the ability to transfer balances between accounts to avail of introductory fees and probably raises f*ck all revenue on a comparative scale.
Someone should bring those bastards in Kildare St to book in the EU courts...

cycling is fun

Wertz wrote:

My mother had a smiliar problem with MBNA and all the shouting at call centre staff didn't get her anywhere....as mentioned if the account is open then you're liable.



Shouting at call centre staff gets u less that nothing imagine answering the phone yourself and having someone shout down da phone at you what would you do would you help someone that shouts at you or someone who is nice l work in a call centre l know which one l do

Wertz

Where did I mention it did?

If you don't like your job go find another one...

cycling is fun

where did l say l did not like my job just offering advice that is all

Slice

If your bank issues you with a combined atm/laser card - the tax on the laser card is not levied unless you've actually used it as a laser card instead of just as an atm card.

If MBNA failed to issue you with a replacement card when your previous card became out of date then how are you suppose to use your credit card account and why should you be liable for the tax on the account? I really think you're not liable for the charges in this instance. Raise your issue with MBNA in writing, if that fails then try raising it with either the Financial Regulator or The National Consumer Agency (this is the new statutory body set up by the Government last year). You can also seek advice from the Consumer Association of Ireland for an independent view.

Sangre

jor el wrote:

As soon as the tax was charged to the card you should have received a bill. Did you receive a bill? The tax is also charged in advance so this year also has to be paid for, even if you cancel the card. Thank you FF/PD, the stealth tax coalition.

The tax isn't charged in advance on the previous year. Thats why to close a credit card you need to leave it in credit of €40 so the account can automatically be charged the following April.