Credit card tax question

homah_7ft

Hi,

my sister took out a credit card for a trip 3 years ago for a trip she ended up not going on. She didn't use the card and thought this was enough to avoid the tax of €40 (I know that the tax is based on having the card). The following April she received a bill for the tax. She paid it and then realised she needed to cancel the card. The card was cut up and sent back to the bank with a cover letter as per the instrucions on the back of the bill. We knew she would still have to pay again since we had entered another taxable period and once again she paid this bill. Now however this year she has received yet another bill for the €40. She rang up the bank and they claimed they never got the credit cards back. Does anybody have any idea where she could go from here? She doesn't want to pay yet another €40 on a card she has never once used and money is tight being a student and all.

Nightwish

The tax is on the card regardless of whether you use it or not so the initial €40 charge stands. As far as charging her twice for this year, I would fight the bank if she did send the card back with a letter, and pay her €40 for the year. Did she register the letter or get a certificate of postage?

homah_7ft

No she didn't register the letter. I realise the tax is based on the possession of the card unfortunately. Theoretically she could be charged this tax forever since her card wasn't acknowledged as received. My thinking is that there must be some sort of natural law that can be appealed to here since it's clear this card has never been used yet will be taxed for three years.

pow wow

But it's not really the bank charging her, it's the revenue commissioners.

I don't know if she can appeal it, if she calls the bank they should know one way or the other. Maybe try the revenue commissioners but I wouldn't hold my breath.

cast_iron

So if I cancel my card today but don't send it back to the bank, I'll be charged till I die? Sounds ridiculous.

If she hasn't been receiving bills from the cc company, then how can the bank claim she owns a credit card. The bank should assume full responsibility for this.

homah_7ft

cast_iron wrote:

So if I cancel my card today but don't send it back to the bank, I'll be charged till I die? Sounds ridiculous.

Or worse you do send it back cut up and they say, "never got it".

pow wow

Who trusts the post these days though seriously? Just mailing it and hoping for the best? I'm sure that's not the first time they've heard that. And not thinking it was strange not getting any acknowledgement they'd closed it?

I'm not saying she's lying but from their point of view they must hear it a lot. It's unfortunate but maybe she'll just have to learn the hard way.

mickoneill30

I've never had a bank need me to send the card back. Normally cutting it up is enough. If they asked for it back I'd say I lost it. They'll cancel it pretty sharpish then (once you tell them it's lost they're liable for any charges on it).

pow wow

That's the point though - if you tell them you want to cancel it then fine. If you pop it in the post and assume they got it along with your request to cancel then that's a different thing. You have apparently no recourse if they announce they didn't receive it...and if you never call/go in to confirm it's been cancelled....

If she can't prove she mailed it in then she is liable. Sad but true. Unless they are feeling generous, which is unlikely with banks and the revenue!

dudara

You never say in your post whether or not your sister actually closed the account. I could send the card back to the bank, but the account might still be open. If you close an account, you should receive formal notification. Did she receive any documentation or did she continue to receive statements every month?

homah_7ft

dudara wrote:

You never say in your post whether or not your sister actually closed the account. I could send the card back to the bank, but the account might still be open. If you close an account, you should receive formal notification. Did she receive any documentation or did she continue to receive statements every month?

Yeah I'd say that is what happened and the account was never closed. She didn't receive formal notification. Wouldn't blame her to be honest (there can be a lot of crap flying about in life at times) it's easy to take your eye off the ball. I guessed myself that she was going to have to eat the cost but asked here on the off chance someone had a workaround. On a side note- she never did get a monthly statement yet her account according to this yearly statement is in arrears. Weird.
'

Tazz T

I'm in a similar situation.

I closed my account with Tesco by letter and by phone last year and I've just recieved a bill for stamp duty. Phoned them and they said it wasn't closed.

The law on this stamp duty thing is ridiculous. Why don't they just get rid of it?

cast_iron

If your account was still open, were you not getting a bill every month?

Random

cast_iron wrote:

If your account was still open, were you not getting a bill every month?

Good point actually :O

jor el

cast_iron wrote:

If your account was still open, were you not getting a bill every month?

Indeed, if the account was still open then why didn't the bank send a monthly statement? You're sister could use this when arguing her point with them. She cut up the card, send it back with a letter saying to cancel the account, got no further statements so it's reasonable to assume it's been cancelled.

homah_7ft

Good thinking on the monthly statement. Hell, she would have known straight away if it hadn't been closed if a bill came the next month. I will see what happens with that argument and let ye know.

homah_7ft

True to my word I am back with an update. After emails to the bank's customer service and a trip to the local branch in person the account has been credited with the €40 and all the interest refunded also.

wasim21k

well i close my credit card with ulster bank and i never send card back to them, just ring and let them know that i dont want it again,
same i did with aib but one thing aib keep sending bill, first was 2.65€ i paid that in bank then next month another bill with 10cent i paid 1€ in case if they want send another bill for 1 cent, then till now after credit card is closed in 2005 keep sending me bill. rang them and couple of time but they never stop it now i went in their credit card section office meet them face to face told them keep money but dont send me bill as i will be moving out of this property and i dont want some one get my details.