PayPal Credit Refund - Refusal to transfer the £ back !?

sarahking87

After a quick search I can see someone else had a similar issue last month but there hasn’t been any solution...

does anyone know where I stand from a consumer rights point of view, when it comes to asking Credit companies to transfer a credit balance back to my bank account?

to put this into context, if you overpay on a credit card, or you get a refund, you usually just ring your provider and ask for them to transfer it back? Never had a problem with this, UNTIL I’ve used PayPal Credit.

Now I’ve got Two scenarios - the first, I over paid by direct debit. I accepted it was my error and it was only a fairly small amount (£20) so I cancelled the DD and left the account in credit. There’s no option online to do anything else.

Secondly, I recently got a refund for an iPhone which was returned as faulty. This is substantially more money, just under £500. PayPal Credit are telling me the refund sits on my PayPal Credit account, and they have no means of transferring the credit balance anywhere else.

so, unlike a credit card, if you use PayPal Credit your money is Permanently locked into this account. Currently, it seems the only way of accessing this refund is to make another Purchase using PayPal Credit of an equivalent value, but this seems ridiculous. I just want to access the refund. 

Just to clarify - PayPal Credit seem to be operating as a separate subsidiary and are also refusing to transfer the balance to my main PayPal account. So I’m totally stuck 

Thoughts welcomed! 

Blackbeard_of_Perranporth

sarahking87 said:

After a quick search I can see someone else had a similar issue last month but there hasn’t been any solution...

does anyone know where I stand from a consumer rights point of view, when it comes to asking Credit companies to transfer a credit balance back to my bank account?

to put this into context, if you overpay on a credit card, or you get a refund, you usually just ring your provider and ask for them to transfer it back? Never had a problem with this, UNTIL I’ve used PayPal Credit.

Now I’ve got Two scenarios - the first, I over paid by direct debit. I accepted it was my error and it was only a fairly small amount (£20) so I cancelled the DD and left the account in credit. There’s no option online to do anything else.

Secondly, I recently got a refund for an iPhone which was returned as faulty. This is substantially more money, just under £500. PayPal Credit are telling me the refund sits on my PayPal Credit account, and they have no means of transferring the credit balance anywhere else.

so, unlike a credit card, if you use PayPal Credit your money is Permanently locked into this account. Currently, it seems the only way of accessing this refund is to make another Purchase using PayPal Credit of an equivalent value, but this seems ridiculous. I just want to access the refund. 

Just to clarify - PayPal Credit seem to be operating as a separate subsidiary and are also refusing to transfer the balance to my main PayPal account. So I’m totally stuck 

Thoughts welcomed! 

What is the question. You spent £500 on a trinket that was faulty and returned? You were credited with £500 back to your account. The refund is back to your account.

So the scenario is, You bought an iPhone for £500. It was faulty, you returned it, and got refunded to the credit account. You have not mentioned that you had paid this in between getting the iPhone and the refund being credited. I take it your balance is back to what it was? I suggest the £500 refund is being used to reduce the amount owed on this account? As such, you are probably in a better position with reduced interest charges than you were prior to buying the trinket.

Wanderingpomm

Close your account and demand the balance is transferred ether to PayPal or your bank account 

sarahking87

Blackbeard_of_Perranporth said:

sarahking87 said:

After a quick search I can see someone else had a similar issue last month but there hasn’t been any solution...

does anyone know where I stand from a consumer rights point of view, when it comes to asking Credit companies to transfer a credit balance back to my bank account?

to put this into context, if you overpay on a credit card, or you get a refund, you usually just ring your provider and ask for them to transfer it back? Never had a problem with this, UNTIL I’ve used PayPal Credit.

Now I’ve got Two scenarios - the first, I over paid by direct debit. I accepted it was my error and it was only a fairly small amount (£20) so I cancelled the DD and left the account in credit. There’s no option online to do anything else.

Secondly, I recently got a refund for an iPhone which was returned as faulty. This is substantially more money, just under £500. PayPal Credit are telling me the refund sits on my PayPal Credit account, and they have no means of transferring the credit balance anywhere else.

so, unlike a credit card, if you use PayPal Credit your money is Permanently locked into this account. Currently, it seems the only way of accessing this refund is to make another Purchase using PayPal Credit of an equivalent value, but this seems ridiculous. I just want to access the refund. 

Just to clarify - PayPal Credit seem to be operating as a separate subsidiary and are also refusing to transfer the balance to my main PayPal account. So I’m totally stuck 

Thoughts welcomed! 

What is the question. You spent £500 on a trinket that was faulty and returned? You were credited with £500 back to your account. The refund is back to your account.

So the scenario is, You bought an iPhone for £500. It was faulty, you returned it, and got refunded to the credit account. You have not mentioned that you had paid this in between getting the iPhone and the refund being credited. I take it your balance is back to what it was? I suggest the £500 refund is being used to reduce the amount owed on this account? As such, you are probably in a better position with reduced interest charges than you were prior to buying the trinket.

Incorrect.
the account wouldn’t be in credit if this was the case, it would just be at a zero balance. in which case there wouldn’t be anything to discuss, would there? 
I thought I’d set this out reasonably well in the post - but perhaps not... 

thanks anyway. 

sarahking87

Wanderingpomm said:

Close your account and demand the balance is transferred ether to PayPal or your bank account 

Thanks - worth a try! I’ll see what comes of it 

sarahking87

I still can’t get my head around this situation. they’re clearly saying they wont do it, but their reasoning is ridiculous. I’ve never come across a credit account that works like this. Let’s see how they respond to my request to close the account - my guess is they’ll just tell me they can’t close it while there’s a credit balance ! 

born_again

So to be clear, had you paid the credit off before the refund was processed?
The only way you would be entitled to your money back would be if it was paid off in full.

Blackbeard_of_Perranporth

Is your account in credit, ie that it does it owe you money?

If your account has a balance to pay, your refund is used against this. My credit card, if a refund is applied, goes to the remaining balance owed first, not to me.

bazzyb

OP buys goods costing ~£500 and pays with PayPal Credit. 

OP settles ~£500 balance so the balance on credit account is now £0. 

OP returns goods to retailer and a refund of ~£500 is posted back to her PayPal Credit account. 

PayPal won’t return the balance back to her and says she has to spend it instead. 

I don’t think what has been posted here is over-complicated? 

bazzyb

@sarahking87 Suggest referring them to their own T&Cs:

7.5. You should not hold a credit balance on your Credit Account. If you pay us more than you owe us, or your Credit Account is otherwise in credit, we will not pay interest on the credit we hold for you. We will use any credit balance to reduce the amount you owe us the following month or, alternatively, upon request only, you can ask us to transfer it to your PayPal account. Please note that there are no automatic credit balance refunds allowed in relation to your Credit Account.

born_again

bazzyb said:

OP buys goods costing ~£500 and pays with PayPal Credit. 

OP settles ~£500 balance so the balance on credit account is now £0. 

OP returns goods to retailer and a refund of ~£500 is posted back to her PayPal Credit account. 

PayPal won’t return the balance back to her and says she has to spend it instead. 

I don’t think what has been posted here is over-complicated? 

From OP.
Secondly, I recently got a refund for an iPhone which was returned as faulty. This is substantially more money, just under £500. PayPal Credit are telling me the refund sits on my PayPal Credit account, and they have no means of transferring the credit balance anywhere else.

Can you see where it said OP had cleared the balance?