Santander Credit Card and Gov Stamp Duty liability

Flaccus

A colleague has a Debenham store card (credit card) issued by Santander, and since Santander pulled out of Ireland, there is no service on this card. She still continues to pay it off every month and still receives statements though she cannot use the card to buy anything. Last week she gets a letter from Santander advising that she will be charged 30 euro Gov. stamp duty and this will be submitted to revenue. Does she have to pay this, considering she has not been able to use the card for at least 18 months.

Thanks

Paulw

If she can't use the card, why has she not cancelled it?????

Flaccus

She can't cancel without paying it off. And like a lot of people with credit card debt, she can't afford to. So the interest keeps mounting. And being charged stamp duty it seems. Just looking on a few sites now, and it seems you don't pay stamp duty only if you account is closed or you die!!

Incidentally I know someone whose account was suspended and handed over to a debt collector after they missed 3 payments. They simply couldn't afford the minimum payments at the time, and Santander would not entertain them. An agreement was made to make X payment every month to the collection agency, and all interest and charges were suspended. No stamp duty either as the account was suspended. The person is happy now, even though their credit rating is in the toilet.

Peregrinus

If she hasn't paid off the card she is still using it, and she is still getting a service - she is getting continued credit. Yes, she has to pay the stamp duty.

wmpdd3

When halifax left ireland, credit card holders were given a personal loan of the balance left on their account and pay it off monthly. So there is no stamp duty due as it is now a 'personal loan'.

Maybe raise the issue with the financial ombudsman or on the taxation forum.

Peregrinus

Yes, if she refinances with a straightforward loan (from Santander or from any other institution) she can avoid the duty.

The question is whether anyone will offer her such a loan. I presume not, since if they would she would have taken it. A different loan could save her a great deal more than the stamp duty.

Paulw

Try the Credit Union for a decent rate loan. Explain what it's for.

If she can make proper repayments, she will get the loan. If not, she'll continue to be in financial trouble. Try talking to MABS too.

Sandraf

I got one of those letters from Santander too in with my Debenhams bill. I understood that my Debenhams card was a "store card" not a "credit card" so I don't see why I should be charged credit card levies.

I was thinking of writing to santander and telling them that the debs card is definitely a store card as its pretty much like a chocolate teapot if you try using it another store so its therefore not a credit card and just an exclusive to debs store card.

Never had much faith in debs anyway and when they decided to stop customers using their card I stopped going there. Only go now to pay a contribution off my bill.

Strangly - the arnotts card and the marks and spencer card (also a UK company) are not charging these credit card fees.

To first poster - has your colleague decided to pay off her bill in full or what?

Sandraf

Could be talking to myself here but anyway - a friend of mine who also got a letter rang Debenhams and was told although that letter was enclosed with her bill and addressed to her, it didn't apply to her store card!.

Flaccus

Well, I checked with her. Its actually a credit card, and not just a store card she got. She has used it in the past to buy stuff elsewhere. Her balance isn't huge but she persists on paying it off month by month with huge interest rates. I'll see if I can organise giving her a loan, that way she can clear it and cancel the thing altogether.