Paypal Credit changing T&C's and increasing APR

mirdragon

Hi all,

Just received an email advising that Paypal Credit are changing their T&C's

This is an extract from the email received

The new interest rate will apply to all non-promotional balances and purchases made using your PayPal Credit account and will come into effect on 1st July 2021. Promotional balances refer to any 0% or instalment offers you may have. Any promotional purchases made before 1st July 2021 will remain subject to the applicable promotion’s interest rate and terms, but if these expire after 1st July and are not repaid in full the remaining balance will move to the new interest rate of 21.9% p.a

The way to prevent this increase is by the looks of it is by closing the account

You have the right to tell us that you want to opt out of this change and would like to close your account, by contacting us on 0800 368 7155 before 1st July 2021. If you do so, you will not be able to use PayPal Credit for future purchases and you’ll need to pay off your balance in full over a reasonable period at your current rate and in line with your existing terms. 

I contacted Paypal and they confirmed that existing promotions will continue to end of term but if there is any balance after the term has ended this will result in being charged interest at the new rate

Ebe_Scrooge

Is there a question in here somewhere?

Any credit provider can vary their APR, provided they give you reasonable notice.

PRAISETHESUN

Pretty standard stuff really - the promo rate of 0% will continue until your end date and then it will revert to the non-promo rate. You can of course opt out of the rate increase but odds are they will then remove your credit facility and ask that any outstanding balance is repaid.