PayPal Credit default assistance

[Deleted User]

Hello all,

I was hoping for some guidance before proceeding with my current dispute with PayPal Credit.

I wish to lodge a formal complaint regarding PayPal Credit and how they have conducted themselves and more importantly negatively impacted my credit file, which up until today has been impeccable. 

On the 1st October 2020, I notified PayPal Credit of my change of address (this date of confirmation has been confirmed by their customer service representative upon speaking with them yesterday afternoon). 

Yesterday (14th January 2021) I was contacted by the owner of my previous property and advised that there were two letters for my collection. I attended a short time later and collected them both. The first letter dated (25/12/2020) is a "Notice of Default Sums" from PayPal Credit, which states that a late payment fee of £12 was added to my account on the 23rd December 2020. The second letter dated (30/12/2020) is from David Quin, Collections Manager, PayPal Credit. I immediately contacted the provided telephone number (0800 368 715) and was advised that there was nothing they could do as "it was already done" and that there was no one I could speak with. 

I find this shocking and unacceptable especially from a company of their size and when I categorically dispute any wrongdoing on my behalf. As such I sent an email to dan.schulman@paypal.com & cameron.mclean@paypal.com stating that I wished for a formal apology and confirmation that any and all "defaults" registered by themselves in regards to their error, against my name, would be removed with all credit reference agencies.

I have just gotten off the phone with a PayPal representative whom contacted me as a result of the above email, stating that PayPal Credit emailed me on the 16th December 2020 and as such they stand by their decision and will not be doing anything further. I have now double checked my emails (Yahoo) of which I never delete any emails, and there is no email from them on this date. 

As such, I would greatly appreciate any advice as to how best to proceed. I deny any wrong doing and I wholeheartedly believed when I took out PayPal Credit that any payments/fees etc would be taken from my PayPal/bank account automatically. I have not tried to remove myself from any payment and always pay things on time. Lastly, if necessary, I am comfortable with proceeding via the court system if needed.

Any and all advice will be greatly appreciated. 

Kind regards. 

finalfantasist

LoneTraveler said:

I deny any wrong doing and I wholeheartedly believed when I took out PayPal Credit that any payments/fees etc would be taken from my PayPal/bank account automatically. I have not tried to remove myself from any payment and always pay things on time. Lastly, if necessary, I am comfortable with proceeding via the court system if needed.

So did PayPal actually say they were going to take payment automatically by a particular payment method or was this just an assumption on your part?  What made you believe they were going to do that?

Edit:  Also, what makes you believe the account has defaulted?  If it's the "notice of default sums" letter that has nothing to do with a default under the CCA or reporting an account as in default with the CRAs.

[Deleted User]

finalfantasist said:

LoneTraveler said:

I deny any wrong doing and I wholeheartedly believed when I took out PayPal Credit that any payments/fees etc would be taken from my PayPal/bank account automatically. I have not tried to remove myself from any payment and always pay things on time. Lastly, if necessary, I am comfortable with proceeding via the court system if needed.

So did PayPal actually say they were going to take payment automatically by a particular payment method or was this just an assumption on your part?  What made you believe they were going to do that?

Edit:  Also, what makes you believe the account has defaulted?  If it's the "notice of default sums" letter that has nothing to do with a default under the CCA or reporting an account as in default with the CRAs.

Hello, 
I made the assumption that they would take payment from my bank account as they do with all my other PayPal payments/purchases. I also believed this, as any other line of credit I have taken in the past (loan, credit card, finance) have always wanted from me a payment method before they grant payment. That's not to say that there are most probably creditors out there that will provide credit without wanting to know how you are going to pay them back.

I believed the account had defaulted as the extent of my research (Google) painted a grim picture that it was there for six years. On a side note, when I spoke with the Customer Service Representative yesterday, he stated that it would remain on my account for six months? 

Regards. 

finalfantasist

LoneTraveler said:

finalfantasist said:

LoneTraveler said:

I deny any wrong doing and I wholeheartedly believed when I took out PayPal Credit that any payments/fees etc would be taken from my PayPal/bank account automatically. I have not tried to remove myself from any payment and always pay things on time. Lastly, if necessary, I am comfortable with proceeding via the court system if needed.

So did PayPal actually say they were going to take payment automatically by a particular payment method or was this just an assumption on your part?  What made you believe they were going to do that?

Edit:  Also, what makes you believe the account has defaulted?  If it's the "notice of default sums" letter that has nothing to do with a default under the CCA or reporting an account as in default with the CRAs.

Hello, 
I made the assumption that they would take payment from my bank account as they do with all my other PayPal payments/purchases. I also believed this, as any other line of credit I have taken in the past (loan, credit card, finance) have always wanted from me a payment method before they grant payment. That's not to say that there are most probably creditors out there that will provide credit without wanting to know how you are going to pay them back.

I believed the account had defaulted as the extent of my research (Google) painted a grim picture that it was there for six years. On a side note, when I spoke with the Customer Service Representative yesterday, he stated that it would remain on my account for six months? 

Regards. 

Every credit card I've ever had (and there are quite a few) have allowed me to open up an account without setting up a regular payment method.  It's far from unusual.

So basically your answer to my question was that they didn't say they would.  Looking at the PayPal Credit homepage gives no indication that they would set up a payment instruction for you and everything refers to *you* setting up a payment instruction so I'm afraid that's a non-starter as far as a complaint goes.

The account has almost certainly not defaulted, but the late payment(s) would be reported to the CRAs.  They'll be there for 6 years but their impact will be minimal after a year or so.

Jumblebumble

LoneTraveler said:

finalfantasist said:

LoneTraveler said:

I deny any wrong doing and I wholeheartedly believed when I took out PayPal Credit that any payments/fees etc would be taken from my PayPal/bank account automatically. I have not tried to remove myself from any payment and always pay things on time. Lastly, if necessary, I am comfortable with proceeding via the court system if needed.

So did PayPal actually say they were going to take payment automatically by a particular payment method or was this just an assumption on your part?  What made you believe they were going to do that?

Edit:  Also, what makes you believe the account has defaulted?  If it's the "notice of default sums" letter that has nothing to do with a default under the CCA or reporting an account as in default with the CRAs.

Hello, 
I made the assumption that they would take payment from my bank account as they do with all my other PayPal payments/purchases. I also believed this, as any other line of credit I have taken in the past (loan, credit card, finance) have always wanted from me a payment method before they grant payment. That's not to say that there are most probably creditors out there that will provide credit without wanting to know how you are going to pay them back.

I believed the account had defaulted as the extent of my research (Google) painted a grim picture that it was there for six years. On a side note, when I spoke with the Customer Service Representative yesterday, he stated that it would remain on my account for six months? 

Regards. 

I am waiting for someone to write here and complain bitterly  that Paypal credit took money from the bank account that they held on record  without authority.

[Deleted User]

I have a Paypal credit account and you have to actively set up a direct debit or make a payment. No different to a credit card. The OP should be checking their account at least once a month so there is ZERO excuse for not knowing payment was due. Ignorance is no excuse! No sympathy and they deserve the correct default flag on their credit file. 

sourcrates

It’s a “notice of default sums”, which is tech speak for a late payment charge.
Nothing to do with a default, totally separate thing.
If you think you have cause for complaint, then you are free to use the complaints process.
If you remain unhappy, you can escalate to the FOS.
A court has no real involvement in such matters.

jonesMUFCforever

OP how to proceed? - Easy make up the missing payment and set up a direct debit for future payments.

PRAISETHESUN

OP - have you actually checked your credit files? That'd be what I would do first. Second would be to pay the outstanding balance if you haven't already. From what you and others have said I'm not actually convinced this letter refers to a default but instead a late payment charge. Usually if you ask nicely and it's a one off in an otherwise clean account they can remove these sort of markers but as you've been a bit heavy-handed with PayPal they are unlikely to do so now. The impact will diminish over time, so although it's frustrating there isn't much else you can do.