A Letter From My Credit Card Company

gaui3d0pnbz86o

I received a letter from my credit card company informing me that they were going to apply a rate of 1.75% for currency conversion fees. As far as I was aware when I applied for the card in 2001, one of the features, if I remember correctly, was 0% currency conversion - somewhat confirmed by the fact that since 2001 I haven't paid conversion fees.

Naturally I am not happy about this as I buy abroad a lot, and some slight savings will now be offset by this additional interest. I have phoned the company in question and requested a copy of my application form and all marketing booklets from 2001 for my card - to confirm if the 0% rate for conversions applied. I should have this in a few days (or so they claim!)

Has anyone else received a similar letter? Or can anyone recommend a card where there is a 0% currency conversion fee with a low interest rate - The rate on my card is high, but it is usually paid in full so it is not an issue for me at the moment.

Or, does anybody have any suggestions on how I should proceed with this matter?

BuffyBot

Well they are entitled to change the terms and conditions, once they let you know in advance (which I presume is the purpose of this letter). and give you the oppurtunity to make alternative arrangements.

I'm pretty sure most T&C's will cover this and most of the time will say your only option if you don't like it is to leave (possibly not in as few words).

ircoha

This charge is now across the board on most cards as the ccy exchange rate is now much more transparent.
see
http://boards.ie/vbulletin/showthread.php?t=2054985155&highlight=exchange
http://boards.ie/vbulletin/showthread.php?t=2054977351&highlight=exchange
http://boards.ie/vbulletin/showthread.php?t=2054970680&highlight=exchange


for some earlier posts on how ccy rates work and why focussing on the fee alone is not the issue

gaui3d0pnbz86o

BuffyBot wrote: »

Well they are entitled to change the terms and conditions, once they let you know in advance (which I presume is the purpose of this letter). and give you the oppurtunity to make alternative arrangements.

I'm pretty sure most T&C's will cover this and most of the time will say your only option if you don't like it is to leave (possibly not in as few words).

While I agree that there is a clause in most terms and conditions that allow them to change the terms and conditions once prior notice is give, (I will terms and conditions shortly, I hope) following points/questions would arise,

1) If I am correct and there was a 0% fee for currency conversions, has this change affected all customers or just me, Surly the justification for amending the terms on an aged account(s) would not be warranted by the small increase of profit that could arise.

2) If I am incorrect and the fee was always to be applied, I would think that a mistake over the course of 7-8 years should be full explained. Why was this not noticed sooner for example.

While it would be easier to change my credit card, I shall hold off on this as, overall they have given me many years of great service, bar this conversion fee.

gaui3d0pnbz86o

ircoha wrote: »

This charge is now across the board on most cards as the ccy exchange rate is now much more transparent.
see
http://boards.ie/vbulletin/showthread.php?t=2054985155&highlight=exchange
http://boards.ie/vbulletin/showthread.php?t=2054977351&highlight=exchange
http://boards.ie/vbulletin/showthread.php?t=2054970680&highlight=exchange


for some earlier posts on how ccy rates work and why focussing on the fee alone is not the issue

Ircoha, I thank you for your post and after reading your posts, I could hazard a guess as to your line of work. However in this case, I can assure you that I understand how currency rates work (if I didn't I wouldnt be that good at my job!) and indeed the fee, to me, is the issue.

I can understand the institutions need for the fee, but I find it a bit rich that they wish to amend the terms on my policy or have made a mistake spanning 7-8 years.

ircoha

Terrell Ripe Monster wrote: »

Ircoha, I thank you for your post and after reading your posts, I could hazard a guess as to your line of work. However in this case, I can assure you that I understand how currency rates work (if I didn't I wouldnt be that good at my job!) and indeed the fee, to me, is the issue.

I can understand the institutions need for the fee, but I find it a bit rich that they wish to amend the terms on my policy or have made a mistake spanning 7-8 years.

Thanks for the kind words and I would be delighted if you could find the time to pen a 'better version'

On the change of the fee structure, it is no different from eirscum/upc/chorus/esb/board gais.
they give u notice of a price change and take it or leave it.
No business can operate without the right to change its price structure.

ps my main activity now is grandparenting: beats fx any day:)

pss just got my boi cc statement now and the 1.75% is in the rate of 1.5436 against usd

just wonder was it always there but were made disclose it?

Keep well.

gaui3d0pnbz86o

You make a valid point, perhaps, there was a change in banking regulations that made the transparency of fees regarding currency conversion greater.

I should, all going well and if banks don't break promises(!), have further updates tomorrow, regarding my previous points.