Changing credit card companies

donkey balls

Hi all,
I am in the process of changing credit card companies for the first time in nearly 20 years,The problem /issue that I have is my current card provider told me that I will be liable for the €30 card charge that the govt charge every year and that I have to pay it before closing the account .
Yet the new card company told me that I don't have to pay the charge till next year,As much as I hate paying the charge every year to the govt I don't want to pay twice.

salamanca22

The first bank is incorrect. According to this you will not have to pay stamp duty on your card if you close your account before december 31st. However if you keep the account open then I would assume you will need to pay the stamp duty.

donkey balls

Thanks for that I actually mentioned it to them about the charge not coming in to effect till next year,And that I was not willing to pay for two card charges the guy told me that the company would give me a letter to say that I already paid for it.
Seems a bit suspect to me.

Nervous Wreck

salamanca22 wrote: »

The first bank is incorrect. According to this you will not have to pay stamp duty on your card if you close your account before december 31st. However if you keep the account open then I would assume you will need to pay the stamp duty.

It doesn't say anything like that anywhere there. What it does say is that if it's a new card that has never been used and is closed in the same period, GSD is not payable. Which is totally different to the OPs situation.

OP, you will need to pay GSD on your card but only once. So you pay it to the first company when closing the card and they will provide you with a GSD Paid Cert. You submit this to the new company and they will either not charge you for your new card with them or they will exempt you from next year.

Spocker

salamanca22 wrote: »

The first bank is incorrect. According to this you will not have to pay stamp duty on your card if you close your account before december 31st. However if you keep the account open then I would assume you will need to pay the stamp duty.

This is incorrect, as it's for debit cards - the OP is referring to a credit card.

donkey balls wrote: »

Thanks for that I actually mentioned it to them about the charge not coming in to effect till next year,And that I was not willing to pay for two card charges the guy told me that the company would give me a letter to say that I already paid for it.
Seems a bit suspect to me.

They will send you the letter alright, my wife recently had to move from Danske Bank, had to pay the charge, and was sent the letter, which was given to our new credit card provider, who did not collect the charge (for the same period)

donkey balls

Thanks for the replies so just to get this right I already paid for the stamp duty back in April,For the card that I currently have and when I close the account another €30 will be charged to my account.
And this charge should cover the stamp duty next April for the new card issued.

sandra_b

I moved from Danske to PTSB last year. I provided letter, but PTSB still charged me.
I phoned them 10+ times, they told they'll call me back, but didn't
Finally they promised (on the phone) that I am not going to be charged next year. I wanted to have it written down in email, but they never sent it. I'll watch next year what is going to happen.

Goat the dote

You paid in April for 2013/2014. Your current bank charge for 2014/2015 tax upon closure. Upon request, they send out cert to give to your new bank, so they won't charge you in April 15 because you've already paid

GerardKeating

donkey balls wrote: »

Thanks for the replies so just to get this right I already paid for the stamp duty back in April,For the card that I currently have and when I close the account another €30 will be charged to my account.
And this charge should cover the stamp duty next April for the new card issued.

This is not really the Banks fault, but Stamp Duty is paid in arrears, so the Duty Paid in April 2014 was the Duty due for the Year Ending April 2014, so once you used the card after April, you became liable for another years duty. This Government Levy is not due until April 2015, but if you close the account before the Stamp duty is due to be collected, the banks are required to collect it "early".

The Government did make one concession a few years ago, if you change Bank/Credit Card providers and have two cards in the same year, then (provided both accounts are not open at the same time, you only need to pay Stamp Duty one, but if the accounts over lap (even slightly) you would be down for two installments of Stamp Duty.

I am surprised the Government never switched it to "same year", since it would allow them to collect it on the double for one year and give them a easy revenue boast with out it technically being new or an increase. Maybe I should not make this comment in the run up to Budget day, might give them ideas.

donkey balls

Goat the dote wrote: »

You paid in April for 2013/2014. Your current bank charge for 2014/2015 tax upon closure. Upon request, they send out cert to give to your new bank, so they won't charge you in April 15 because you've already paid

Thanks for that I will get on to my new company to let them know that I will be paying the charge to the previous card company.