PayPal Credit rant

[Deleted User]

This whole thread infuriates me. 

D3xt3r5L4b

auk95 said:

This whole thread infuriates me. 

Care to elaborate?

redux

coachman12 said:

Deleted_User said:

Why do you believe it is 'naughty of PayPal?'?

Not only are they following the law, but it benefits the OP.

I think I gave my reasons in my posting and I also said Paypal were operating within the law. But big douceur of 0% interest for 4 months as the headline selling-point does not actually say "0% interest for 4 months so long as you buy only one item in that period". I think the O/P might well have preferred to have paid off the 0% for the one item it applied to and then started a new offer 0% offer on his second item after 4 months. He may wish to tell us if my assumption is correct. My views are much the same as Tildaplum's. But of course, you are right in telling us all to read full T&Cs ( though I fear it will remain human nature not to do so when we are dealing with a big trusted company name). 

Paypal wouldn't headline that as a selling point, as it isn't true. You can buy any number of items on the 4 months at 0% arrangements either simultaneously or separately at irregular intervals, and without necessarily having to wait to clear one before starting the next.

Also, what has caused confusion to the OP and perhaps some of the replies is that there is the 4 month deal, then also a 12 month deal.

But to be pragmatic, this isn't the disaster that the OP is afraid of. Firms are obliged to put payments against the highest rate first, so it's an advantage now, but it can also be used when clearing this. The thing to do for the 4 month deal is wait until the day after it expires, then pay its remainder in full. This money has to go against this, because it's now the highest rate. And it's nearly no disruption from what would have been done anyway. Then don't forget to also make the regular payment on the 12 month deal, either the same day or on the usual day of the month for this.

mojo293

I have a similar issue with Paypal credit, and its probably a lesson learned for me.
I bought a Dyson hair product for the wife last christmas, and took advantage of the 12 month Interest free payments. All set up and was happily paying £37.50/month direct debit which was setup as part of the purchase, balance is going down and on target to be cleared by month 12, with no interest.

Skip forward a few months and in April I ordered a Nespresso machine from Nespresso website. There was an offer of 4 months 0% available, which I opted for. I expected this to be the purchase cost £99 spread over 4 months at 0% interest, like the first purchase I made. My subsequent DD payments are setup and taken by Paypal, but the amount is £42.50. So they appear to be taking the original £37.50 + £5. When O logged into my account, the separate items/offers are listed. The Dyson balance is still going down at the original rate, but the Nespresso one has only reduced by £5.

On the account, it states 'Pay £94 by 14 Aug 2020 to avoid paying interest'. So, If I make a stand alone payment of £94, will this clear the Nespresso purchase, and then m monthly DD will revert back to £37.50 and continue for the Dyson product?
What I want/need to avoid, is me paying an extra £94 and then it doesn't go to the correct item (The Nespresso) and then I end up paying interest on that outstanding part of the balance.

I was considering making another 12 month 0% purchase with this, but unclear what will happen now. Will it be 12 equal payments to clear it, or will it be added like the Nespresso was and then only a minimal payment taken automatically?
The above is a bit of a ramble, but I also think some fo the T&C's could be clearer on how various purchases will be paid off, but maybe it was me not reading every word of the T&C's. Like I said, lesson learned.

redux

mojo293 said:

I have a similar issue with Paypal credit, and its probably a lesson learned for me.
I bought a Dyson hair product for the wife last christmas, and took advantage of the 12 month Interest free payments. All set up and was happily paying £37.50/month direct debit which was setup as part of the purchase, balance is going down and on target to be cleared by month 12, with no interest.

Skip forward a few months and in April I ordered a Nespresso machine from Nespresso website. There was an offer of 4 months 0% available, which I opted for. I expected this to be the purchase cost £99 spread over 4 months at 0% interest, like the first purchase I made. My subsequent DD payments are setup and taken by Paypal, but the amount is £42.50. So they appear to be taking the original £37.50 + £5. When O logged into my account, the separate items/offers are listed. The Dyson balance is still going down at the original rate, but the Nespresso one has only reduced by £5.

On the account, it states 'Pay £94 by 14 Aug 2020 to avoid paying interest'. So, If I make a stand alone payment of £94, will this clear the Nespresso purchase, and then m monthly DD will revert back to £37.50 and continue for the Dyson product?
What I want/need to avoid, is me paying an extra £94 and then it doesn't go to the correct item (The Nespresso) and then I end up paying interest on that outstanding part of the balance.

I was considering making another 12 month 0% purchase with this, but unclear what will happen now. Will it be 12 equal payments to clear it, or will it be added like the Nespresso was and then only a minimal payment taken automatically?
The above is a bit of a ramble, but I also think some fo the T&C's could be clearer on how various purchases will be paid off, but maybe it was me not reading every word of the T&C's. Like I said, lesson learned.

I think the 12 month one is automatically equal payments, whereas with the 4 month offer it's up to you to pay at your discretion.

So £5 is the normal minimum monthly payment. After a couple more of these your £94 (99-5) will be down to £84.

Maybe you can find a way to adjust the direct debit (I dont know), or else just make one manual extra payment at a suitable moment.

mojo293

redux said:

I think the 12 month one is automatically equal payments, whereas with the 4 month offer it's up to you to pay at your discretion.

So £5 is the normal minimum monthly payment. After a couple more of these your £94 (99-5) will be down to £84.

Maybe you can find a way to adjust the direct debit (I dont know), or else just make one manual extra payment at a suitable moment.

Cheers. Yes, the intention is to just pay off the £94 of the Nespresso one, now I know it isn't a 4 x £24.75 arrangement, and I want that element cleared before it starts acrueing interest.

In fact, as we aren't going holiday this summer anymore, I have the funds available now to clear the whole Paypal credit balance, which I may do before making another purchase on it. I wanted to upgrade my laptop and take advantage of a 12 months interest free offer using PPC. At least now I know how it works, I'll probably try and stick to one purchase/offer at a time in future.

mojo293

Well, a little update on my Paypal credit account query posted above. After another months payment on this offer and another 12 months I.F offer, the balance on the 4 month interest free offer was £84.00.

This offer expires on 14 August. Paypal credit account online said 'Pay £84-00 by Aug 14 to avoid paying interest'. So I made the payment of £84-00 and it cleared overnight. I have just logged into my paypal credit account, and under the nespresso offer it now says 'Pay £37.50 by Aug 14 to avoid paying interest'. So they have not cleared the £84.00 to nespresso offer, but only £46.50 of it.

I have just rang Paypal credit and they say its the way they allocate payments to avoid the customer paying too much interest. But why say that if I pay £84 by a certain date I'll avoid interest, if that money isn't going to clear the full amount as I expected it to? Also, she said they can't move the money around at their end to clear the expiring offer with the full £84.00 I just paid.

I am told they are going to reverse my payment, and that I should wait till my next statement on 7th September when the offer has expired, but after that date I will have 25 days to make the £84.00 payment and avoid the interest. The interest is apparently not added from 15th August.

Confused... I am!

I think I will clear my balance after the next statement date (7th Sept) and close my PP Credit account, as surely its crazy that you can't allocate certain payments to clear the offers expiring soonest? It almost seems like a trap to ensure the customer pays interest, or keeps having to pay more and more to clear the balance of a certain part of it.