Warning! Don’t use PayPal to pay on a credit card

molerat

You paid with Paypal as a guest, S75 will not apply.

BartyBoy

SuzieSue wrote: »

I bought something for over £100 using PayPal. It was custom made so the lead time was 4-6 weeks...

You were very lucky!

I also placed a custom made order with a printer for some Christmas cards over a year ago, the printer did not supply what I ordered and refused to take the order back for a refund. I contacted PayPal to seek for help, straight away PayPal told me they couldn't do anything for me because the purchase was custom made. I spoke to different people from PayPal to explain the issue, I even contacted their CEO to make a complaint, but PayPal still refused to do anything. I then decided to contact FOS to file a claim. Well, they were not any better than PayPal. Anyway, in the end I had to take the printer to court, and it wasn't a nice experience. So, lesson learned, only use PayPal when REALLY necessary (on eBay only)...

cashisking1

deleted by user

FairTrial

cashisking1 wrote: »

They ruled "We have reached the conclusion that connected lender liability under section 75 of the Act attaches to all transactions entered into using credit cards issued under consumer credit agreements regulated by the Consumer Credit Act 1974, whether they take place within a three or four-party structure"

Cashisking1,

Please stop it.

The Financial Ombudsman Service (FOS) has definitively ruled that Section 75 protection does not apply if a credit card is used to pay a PayPal balance for later on-forwarding.

Final.
Finished.
Done.

You are just employing FUD (Fear, Uncertainty, Doubt) to try and undo that reality.
Please stop it.

If you are right, please challenge the FOS, and do not keep trying to confuse the issue, and lessen the impact of the situation, until you have done so.
You have not done so and are not doing so.
And the FOS ruling stands, and has created the de-facto legal reality.

samwardill

FairTrial wrote: »

Cashisking1,

Please stop it.

The Financial Ombudsman Service (FOS) has definitively ruled that Section 75 protection does not apply if a credit card is used to pay a PayPal balance for later on-forwarding.

Final.
Finished.
Done.

You are just employing FUD (Fear, Uncertainty, Doubt) to try and undo that reality.
Please stop it.

If you are right, please challenge the FOS, and do not keep trying to confuse the issue, and lessen the impact of the situation, until you have done so.
You have not done so and are not doing so.
And the FOS ruling stands, and has created the de-facto legal reality.

The FOS may have an opinion that Section 75 protection does not apply if a credit card is used to pay via PayPal. However this is most definitely not Final, Done or Finished. Any FOS decision can be taken to court. The court's jurisdiction is final.

cashisking1

deleted by user

samwardill

Personally I believe that the Ombudsman services have become increasingly overloaded as more and more people are using them and I believe that they are struggling to recruit good staff to make good decisions. I have had three Ombudsman cases recently where I believe that the Ombudsman made very poor decisions. I would hate to think that such decisions might set legal precedents.

tain

Could I have a little clarity as to when this applies please? There are a number of scenarios, and it's only the one in bold that I'm concerned with.

1. You buy something on ebay and pay through paypal. Your stored card on paypal is a credit card (no sec75)

2. You go to joeblogs.com and buy some goodies. They give the option of 'pay through paypal', whereby you log in to your account and pay via your stored card, which is a credit card. (no sec75)

3. You're purchasing a treat from a small, independent website. Their only method of processing payments is using a paypal portal. You don't log in to any paypal account, and there is no paypal stored card. They allow you to type your credit card details straight into the paypal portal and it makes an instant payment, with no details being stored. No section 75???

4. Exactly as in point 3, but they use something like Sage Pay instead of the paypal version. No section 75?


In points 1 and 2, if you sold something on ebay then there's every chance your account could be in credit, so the credit card may only be used for part-payment. In the last two points, there's no option of this as the payment is coming straight off your card.

BartyBoy

samwardill wrote: »

...I believe that they are struggling to recruit good staff to make good decisions...

FOS was used to be very good and very consumer focussed, but they have definitely changed in the recent years. In the last 4 occasions I contacted them, they were no good at all even I provided them lots and lots of evidence to support my cases. In one occasion, when it reached to the final stage of the investigation, I discovered the girl from FOS did not really know what I was complaining about, I was shocked. And surprise surprise, her decision was in the other party's favour, it was a total waste of time and effort!

stator

What if you use Paypal Pay After Delivery. Then wouldn't Paypal be the credit provider?