Paypal Credit - Beware all is not what it seems.

patrickt1970

Hi,
I recently got a 0% credit card and decided to consolidate my Paypal credit account into this to reduce credit charges. You can imagine my surprise when I was told by the agent "You cant pay your balance with a credit card as it is against our policy. Our policy is to ensure you don't create more debt." I advised him that the agreement with Paypal effectively holds people in debt then as there are no offers and the only ability to settle the account is to pay with cash from a bank account. Given the size of Paypal this is in my opinion a provider taking advantage of people who have used the credit facility only to find they are locked in unless they have cash, which probably defeats why they used the credit in the first place. I have subsequently paid the balance in full and have closed my account - People beware Paypal are not supportive and in my opinion are taking advantage of people and making millions in the process.

Puddles83

What on earth are you talking about?

Puddles83

Posted too soon...

Wanted to add that PayPal Credit isn’t a Credit Card product, and therefore doesn’t allow balance transfers. Not allowing you to pay the balance with a credit card actually is a good policy... as credit card providers would treat it as a cash transaction, therefore costing you a shed ton of interest.

If you wanted to transfer your PayPal Credit balance to a card, you should have chosen a Money Transfer card rather than a standard BT card.  Your ignorance of their policies is not their fault.

Also... clearly the fact that you have paid off the balance means that people aren’t ‘locked in’ as you describe...lots of people use this product without a problem - maybe it’s your problem rather than theirs?

Marcio45

Patrick i am afraid but they are correct. Paypal credit is not a credit card but a credit account. Because of this you cannot do balance transfers. Generally, credit accounts dont allow payments with credit card, with the only exception i know of is Very.
Even if Paypal credit accepted payment by credit card, your credit card would consider it a cash transaction, you would get charged fees and you would be charged full interest and not benefit of a 0% interest period.
As others said, in your case you should have got a money transfer card.

2021BJ

patrickt1970 said:

Hi,
I recently got a 0% credit card and decided to consolidate my Paypal credit account into this to reduce credit charges. You can imagine my surprise when I was told by the agent "You cant pay your balance with a credit card as it is against our policy. Our policy is to ensure you don't create more debt." I advised him that the agreement with Paypal effectively holds people in debt then as there are no offers and the only ability to settle the account is to pay with cash from a bank account. Given the size of Paypal this is in my opinion a provider taking advantage of people who have used the credit facility only to find they are locked in unless they have cash, which probably defeats why they used the credit in the first place. I have subsequently paid the balance in full and have closed my account - People beware Paypal are not supportive and in my opinion are taking advantage of people and making millions in the process.

I know there appears to be some confusion because people see that their PayPal Credit account number is a card number and assume it is a credit card.  That it uses a credit card-like number isn't relevant. It isn't a credit card and has never been advertised as such so you can hardly complain when they refused to offer you credit card-like facilities.  They're not doing anything you've suggested they're doing, no more than any bank is by refusing balance transfers to loan accounts for example.

I will point out that it's not unheard of for banks to refuse balance transfers to a specific card, and in some cases from specific cards, and this is when the product is an actual credit card, so even if PayPal were doing what you claim they were, it would not be without precedent.

You have no legal right to balance transfer a debt.

[Deleted User]

No different than Argos, you can't balance transfer any debt on their "card"

Rosco32

It amazes me how some people don’t read the t’s & c’s of a credit product they take out, and when they can’t pay credit with credit decide to blame it on the lender. Had you of read the t’s and c’s there’d of been no surprise.

MalMonroe

Rosco32 said:

It amazes me how some people don’t read the t’s & c’s of a credit product they take out, and when they can’t pay credit with credit decide to blame it on the lender. Had you of read the t’s and c’s there’d of been no surprise.

How is this helpful in any way?  Not only is it unhelpful but the OP hasn't been back since 26 February. And it's have, not of.

[Deleted User]

And you inciting drama and being pedantic doesn't help either.
Not 'being back' means they've not bothered replying so have drawn their own conclusion anyway.

zzyzx1221

MalMonroe said:

Rosco32 said:

It amazes me how some people don’t read the t’s & c’s of a credit product they take out, and when they can’t pay credit with credit decide to blame it on the lender. Had you of read the t’s and c’s there’d of been no surprise.

How is this helpful in any way?  Not only is it unhelpful but the OP hasn't been back since 26 February. And it's have, not of.

If you have a problem with a post, report it.

You coming in to every thread trying to police it is just stirring the pot, although part of me suspects that's exactly why you do it.