Charged on a closed credit card account.

MMiskella

I was living in the UK for a few years up until just over a year ago.
I had a bank account and credit card account with Natwest which I closed earlier this year after incurring stamp duty charges on my unused credit card about June. During all this I requested that the credit card be cancelled. After paying the outstanding balance as it was my fault for not closing it sooner the credit card was cancelled on the 20th of July.

Yesterday I get another letter requesting an additional £27 "stamp duty" charge. I just got off the phone with their customer service and they confirm that the account is closed but that the UK government is still charging me stamp duty because the card was not cancelled before April (tax year).
I was not warned about any further charges when I was cancelling my account and I find it very strange that they would charge twice in a year instead of a once off.

I am waiting for a call back from the complaints department so I can try to get a better explanation of this and have it in writing but in the mean time does anyone know if I can fight this at all?

tenchi-fan

MMiskella wrote: »

I am waiting for a call back from the complaints department so I can try to get a better explanation of this and have it in writing but in the mean time does anyone know if I can fight this at all?

It's usually a better idea to get your facts right before making a complaint.
It is a government charge and not at the bank's discretion.

Stamp duty is charged on a particular date every year AND when you close your account.

Think about it.. you possessed the card both last year (to April 2011) and this year (from April 2011 - July).

MMiskella

tenchi-fan wrote: »

It's usually a better idea to get your facts right before making a complaint.
It is a government charge and not at the bank's discretion.

Stamp duty is charged on a particular date every year AND when you close your account.

Think about it.. you possessed the card both last year (to April 2011) and this year (from April 2011 - July).

This is why the thread exists. I do not have online banking any more because the accounts have been closed, any paper statements have been shredded for the same reason and I do not recall any such fee being applied before since the account was created in 2006.

So your post is saying -
Yes they can charge your account even if it is closed and it will operate as normal (incurring late fee's, etc.). Just pay it now.
Even though the cards expiry date is 10/12 I will not be charged again as the card was cancelled this year.

Correct?

tenchi-fan

MMiskella wrote: »

This is why the thread exists. I do not have online banking any more because the accounts have been closed, any paper statements have been shredded for the same reason and I do not recall any such fee being applied before since the account was created in 2006.

So your post is saying -
Yes they can charge your account even if it is closed and it will operate as normal (incurring late fee's, etc.). Just pay it now.
Even though the cards expiry date is 10/12 I will not be charged again as the card was cancelled this year.

Correct?

First, the bit in red in just irrelevant.. As for the bank not informing you of government charges.. it was in the Budget.

Just to clarify I'm not aware of UK stamp duty charges- So I'll answer your question as it applies to Irish stamp duty charges.


You had a credit card in April 2011, correct?

You pay stamp duty, which relates to the period from April 2010 to Mar 2011.

You did not close your account until June or July 2011. Which means you had a credit card for the year April 2011 to June/July/October/March (Take your pick). Correct?

You pay stamp duty, which relates to the period from April 2011 to Mar 2012.

Stamp duty is collected yearly in April or upon closing your account. So, correct, you can end up paying stamp duty twice in one calendar year.

wmpdd3

I just want to add that even though the account is closed the bank will keep adding charges and fee to this amount until it is paid and if you also have a current account with the same bank they can move the balance to the current account and take it away form your balance.

2c

I am not sure on the status of Uk duty, But I think there is a similar issue in terms of Irish credit/charge card holders from pre 2002 when as far as i remember when the stamp duty law was brought in the Irish 2002 finance Act.

If you held a card before this, the tax would should been applied from April's 2002 budget act for the April 2002 - April 2003 tax year when it was made law by goodtime Charlie Mcgreevy.

My reading is when you go to close these cards nowadays at any part of the year, the companies will inform you there is a duty to paid up to the following April next year. This is a double payment for pre 2002 stamp duty cardholders as they have already paid ahead to the following April of the next year, The argument from companies is that if you close a card today the duty is from is back dated, ie in April 2011 you are paying April 2010 - April 2011 duty. The government is diddling us somewhere...

Can anyone clarify did the government pull a fast one back dating this in the original act, otherwise when you close a card your paying twice in the same year.