PayPal credit fees

nursemac22

I received a payment credited to my PayPal credit account approx £1000 as they said I had been inappropriately charged fees and charges when they reviewed my account. I received this email in Dec 22. What they did was apply the £1000 credit to my PayPal credit account which I feel is unfair given they have left me short of money by the inappropriate fees and charges. I would have rather they had sent it to my PayPal balance so o could transfer it into my bank account especially in times of need. I phoned PayPal credit customer services today and they blankly refuted that they had done any wrongs and wouldn’t refund any monies. Is there anything I can do about this?

This is an excerpt from the letter ‘ The credit is designed to account for fees and interest which we believe may have been inappropriately incurred.’ I stand by the fact they overcharged me and I don’t feel it is correct to just reapply the credit to my PayPal credit account- any help would be appreciated 

serpico100

As you have spoken to PayPal already, I assume that it was in fact a genuine email from PayPal as they seem to know about it. If they were refunding overpaid fees, the refund should have gone into your normal PayPal account.

I’m not sure how it’s happened and it appears to be very underhanded to me, but what you have now is a PayPal credit account. Think of it as an virtual online credit card with a £1000 limit. You can spend it but it needs to be paid back along the same rules as a normal credit card. Minimum payments each month, interest added each month if not paid off in full etc. ( although there is an interest free period of 4 months I believe) As it is an online credit card you can’t transfer the money to your main PayPal account or withdraw it (as you have already found out)

Basically, what they are saying is “to compensate you for overcharging you for fees and interest in the past we are giving you £1000 in credit so we can overcharge you for more fees and interest in the future”

As I said, I don’t know why you’ve been given it as you normally have to apply for credit. I would certainly be calling them and cancelling it. 

JCS1

Suspect it will be under the rules of offset. But also, from a business point of view, if you owe them 5k and they owe you 1k  they would not refund but just reduce what you  owe instead

nursemac22

I just don’t know what way to turn next as I just don’t want to settle for them saying that’s how it has to be refunded .