PayPal Credit - BEWARE!

EssexHebridean

sportsarb wrote: »

You possibly already know this but you can unsubscribe from those e-mails. There will be a link at the bottom of the e-mail.

And those of us looking at it in a level headed and sensible way will do that. Someone who's perhaps struggling financially, and can see a way of being able to use a further source of credit for many day to day expenses though - would they be more likely to think "Oh I'll just unsubscribe from that email" or "Now there's an idea..."? This sort of marketing plays on the financially vulnerable in my view - and I honestly think the increase in people including debt to PP credit in their SOA is flagging this up as a growing and significant problem.

sourcrates

EssexHebridean wrote: »

I'm curious to know how they work around credit limits too - are they quick to offer increases when people get towards the limit they get given? Is the limit directly based around the size of the initial purchase? Can I ask, Redux - how *much* higher than needed was that limit you got given?

redux wrote: »

£5000 limit, I haven't been over £350,

DawnW wrote: »

I get tired of the frequent emails telling me that I have been 'selected' for this (at least once a week), and the pushing when I buy anything on ebay, even tiny purchases Why have I been 'selected'?

I am sure it is useful for some people and situations, but like EH, I worry that it is being pushed at people pretty indiscriminately.

This is a very sore point with me, I`ve tried to argue the case on other boards, for irrisponcible lending, on behalf of various posters who were been given quite a hard time about it, reading this thread has only served to back up my case that some creditors approve far too high a credit limit for most applicants.

The counter claim always comes back, well you shouldn`t have spent it, but its not that easy for some, your 2 weeks from payday, have a tenner in your pocket, and a whopping 5k limit on your card, of course your going to spend it, I`ve seen someone on a 15k salary, given 3 cards each with a 10k limit, its ludicrous.

Creditors due dilligence is sadly lacking in this area, not with every application, granted, but in a lot of cases, there are those on here who wont entertain the fact a creditor can get it wrong, the forum is full of people who think like that, well they are the ones who are wrong, unaffordable lending is a reality, and the problem seems to be getting worse.

EssexHebridean

Yep - right there with you Sourcrates - combine the higher-than-relevant credit limits and the seemingly indiscriminate pushing of the product to all and sundry in the first place and I really feel we're heading for a major issue here in the not so distant future.

I would love to see this whole question investigated by the MSE team as I really feel strongly that the advertising of the credit set up is irresponsible in the extreme.

honkus

I hope I don't get stick for this, already feel sick about the mess I've gotten into.

Not proud of it, but I applied for paypal credit and got a £5k limit. I never expected to be approved, let alone approved for £5k.

They upped it to £6k a couple of months in and I'm now spent up to a whisker away from the limit.

I wish I'd never applied, but my credit is now burst and I'm working towards a 1st December start date for my DMP.

I've had no reply from my letter to them yet.

EssexHebridean

Ahh honkus, definitely no stick from me - it's that sort of story that make me feel I was justified in starting this thread as it's exactly the sort of thing I was worried about seeing the number of people now coming forward on here with PP credit listed in their debts.

Can I ask, out of interest, what value of purchase was it you applied on, when they gave you the 5k limit to start with?

honkus

Hi EssexHebridean

I think it was £250 or thereabouts. I'd not long opened an Amazon card through Newday with a £500 limit, so would assume they thought I was a risk (spolier - I was).

They don't let you transfer money to friends and family, betting sites, or some international Ebay transactions.

I'm kicking myself and wish I could turn back time.

Takmon

sourcrates wrote: »

This is a very sore point with me, I`ve tried to argue the case on other boards, for irrisponcible lending, on behalf of various posters who were been given quite a hard time about it, reading this thread has only served to back up my case that some creditors approve far too high a credit limit for most applicants.

The counter claim always comes back, well you shouldn`t have spent it, but its not that easy for some, your 2 weeks from payday, have a tenner in your pocket, and a whopping 5k limit on your card, of course your going to spend it, I`ve seen someone on a 15k salary, given 3 cards each with a 10k limit, its ludicrous.

Creditors due dilligence is sadly lacking in this area, not with every application, granted, but in a lot of cases, there are those on here who wont entertain the fact a creditor can get it wrong, the forum is full of people who think like that, well they are the ones who are wrong, unaffordable lending is a reality, and the problem seems to be getting worse.

You seem to think the solution is for people to be treated like children and it's perfectly reasonable for an adult to spend more money than they can afford simply because they are offered it.

If you went into a restaurant and ordered two desserts and the restaurant said "I'm sorry sir but that is too much sugar for a healthy diet so you can only have one". Would you describe the restaurant as being responsible?, i know what most adults reaction to that would be.

I have one credit limit with a £15k limit but i have never spent anywhere near that in one month and it has always been repaid in full every month. Just because something is being offered doesn't mean you have to accept it and use it to the full and this is part of being an adult.

Josh_Milner

I've found PayPal like to default all payments to credit.. sneakily racking it up, you must make sure you don't allow this as you can easily change it but you've just got to notice they've done it!

sourcrates

Takmon wrote: »

You seem to think the solution is for people to be treated like children and it's perfectly reasonable for an adult to spend more money than they can afford simply because they are offered it.

If you went into a restaurant and ordered two desserts and the restaurant said "I'm sorry sir but that is too much sugar for a healthy diet so you can only have one". Would you describe the restaurant as being responsible?, i know what most adults reaction to that would be.

I have one credit limit with a £15k limit but i have never spent anywhere near that in one month and it has always been repaid in full every month. Just because something is being offered doesn't mean you have to accept it and use it to the full and this is part of being an adult.

Thank you for your comment, however describing people in severe debt as “children” just serves to dissuade them from seeking advice, it’s clear you are proficient in the management of your own money, unfortunately many others are not, this can be due to many different issues, mental health, controlling relationships, autism, like my own son, or just plain ignorance, whatever the issues people need help and guidance, not sarcasm, not everyone has the mental capacity to deal with real life.

Takmon

sourcrates wrote: »

We already know how perfect you are Takmon, no need to comment further thank you.

If you are unable to come up with a logical counter argument maybe you should go away and rethink your point of view. Do you honestly want to be treated like a child when you are an adult and think this is a step forward?

If someone put a large bowl of sweets in front of you would you gobble them all up like an excited child until you felt physically sick?. Then start complaining to the person who put them there saying they are irresponsible?