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FRCA To Reimburse Wrongly Charged Credit Card Levy

Credit card holders who were wrongly charged 2 percent credit card levy from February until August 2013 will be reimbursed. This follows the decision outlined by the Association of Banks
15 Jun 2017 10:04
FRCA To Reimburse Wrongly Charged Credit Card Levy

Credit card holders who were wrongly charged 2 percent credit card levy from February until August 2013 will be reimbursed.

This follows the decision outlined by the Association of Banks in Fiji (ABIF) and Fiji Revenue and Customs Authority (FRCA) yesterday.

The Consumer Council chief executive officer Premila Kumar said the credit card levy was introduced by the Government in 2011 and was implemented in 2012 which allowed commercial banks to charge credit card holders a 2 percent levy on their monthly outstanding balance.

The levy was then remitted to FRCA by the banks.

“When FRCA came up with the Tax Amendment Decree, it incorrectly stated that the 2 percent credit card levy will be based on the bank’s billing cycle,” said Ms Kumar.

Unfortunately, it was discovered that credit card holders, despite having paid their account on the due date according to the credit card billing statement, they continued to be levied the 2 percent charge.

According to Mr Kumar, this happened because the levy was applied based on each bank’s billing cycle.

The problem was that each bank has their own billing cycle and consumers are not aware of each bank’s billing cycle.

Originally, the credit card levy was implemented whereby consumers were expected to pay 2 percent credit card levy based on banks billing cycle and not the due date stated on the statement.

“But the irony was consumers did not know the banks’ billing cycle.

“They ended up paying 2 percent levy despite clearing the outstanding amount before or on the due date as stated on the credit card statement,” said Ms Kumar.

As a result of the small error, credit card holders were charged incorrectly and most of them are not aware of this, said Mr Kumar.

The Council had been lobbying for the issue to be addressed for four and a half years with FRCA and the Reserve Bank of Fiji (RBF) and the Complaints Management Forum for consumer justice.

THOSE WHO CAN APPLY FOR REIMBURSEMENT:

Credit card holder of Westpac, BSP and ANZ used between February- August 2012.

Present a copy of your bank statement to FRCA.

Banks are not to charge customers for issuing statements.

 

Feedback:  monica.aguilar@fijisun.com.fj

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