APR for Credit Cards must include cost of Government Stamp Duty under new EU Consumer Credit Directive
CCD comes into force here on 11 June 2010, the APR (Annual Percentage Rate of charge) for credit cards must now include the cost of the government stamp duty on credit cards which currently stands at €30 per credit card account per year.
Prior to 11 June, the calculation of the APR for a credit card was made up of interest, fees and charges excluding government stamp duty.
Post 11 June, the calculation of the APR will be made up of interest, fees and charges and government stamp duty. This will mean that credit card APRs in the Republic of Ireland market will have to be recalculated to include the government stamp duty and this will affect the advertised APR for a credit card. However, this recalculation, of itself, will not change the cost of the credit card to the cardholder.
Consumers wishing to have a credit card should shop around for the product that is most suitable to their requirements in terms of price, service, convenience, etc – as with all banking products/services.
IBF is informing consumers of this development through the media and through its website. IBF-member credit card issuers are preparing information for their customers on this matter.
IBF and its members have long campaigned – and will continue to campaign – for the reduction/abolition of stamp duty on credit cards and other payment cards.
Customers are advised to contact their credit card issuers with any further queries.
The Irish Banking Federation (IBF) is the leading representative body for the banking and financial services sector in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
Further information: Felix O’Regan or Louise O’Mahony at IBF, tel. 6715311