PayPal Credit - Changes

20aday

Good afternoon,

Apologies in advance if this is in the wrong area of the MSE forums.

I've had an email from PayPal stating they are making some changes from May 1st, 2019.

1. Standard variable rate of interest will increase from 17.9% p.a. to 19.9% p.a. As a result, the APR will also increase to 19.9% APR (variable)

This increase is in response to a general rise in interest rates in the UK during the last 12 months. The changes will also help us to continue to offer and improve our 0% interest for 4 months offer.

The new interest rate will apply to all purchases made from 1st May 2019. Any standard purchases made before that date will be subject to the existing interest rate of 17.9% p.a. Any promotional purchases made before 1st May 2019 will remain subject to the applicable promotion’s interest rate and terms. If these expire after 1st May and are not repaid in full, the remaining balance will move to the new interest rate of 19.9% p.a.
It is important that you understand that this could:

• increase the amount you pay each month; and
• may mean that it takes you longer to repay any outstanding balance on your account.

2. Our 0% for 4 months offer is improving

We're always looking for ways to improve our services and help you get even more from PayPal Credit – which is why we’ve listened to our customers’ feedback. We are improving our 0% for 4 months offer. It will now apply to purchases and basket totals of £99 or more instead of £150 or more. This is referred to as a Conditional Purchase Offer in your terms.

3. The monthly minimum payment amount is increasing

The minimum monthly payment is currently the greater of 1% of your outstanding balance (plus interest and default charges) or £5, or the full value of your outstanding balance if less than £5. We are increasing this to 2% of your outstanding balance (plus interest and default charges) or £5 (if greater), or the full value of your outstanding balance if less than £5.

This means that the:
• amount you pay each month may increase; and the
• cost of certain purchases will be spread over a shorter time than is currently the case.

This change will help customers repay balances more quickly and have lower outstanding balances each month, in line with our commitment to offer credit in a responsible way.

Please click here to read your new Outline of Credit and click here to read FAQs.

You have the right to tell us that you want to opt out of these changes and would like to close your account, by contacting us on 0800 368 7155 before 1st May 2019. If you do so, you will not be able to use PayPal Credit for future purchases and you’ll need to pay off your balance in full, in line with your existing terms.

Thanks for being a PayPal Credit customer.

PayPal Credit Customer Services Team

SPOWER

Hi. I have just received the same email. I am quite pleased as I use the 0% thing on Jet2 and Ryanair to spread the cost of flights. Having it at £99 is even better for me.

A4445

I had the same It’s a bit disappointing they are increasing rates. Creation did it as well seems to be an upward trend on credit accounts.

20aday

It's just a shame, apart from the decreased spend required for four months interest free, is the ability to make faster payments to a PayPal Credit account.

I know a Direct Debit comes in handy for meeting criteria on interest bearing current accounts as well as making sure you don't miss a payment but it would be nice to have that facility too.