Paypal 3 is no longer allowed

mairiT

I have been with PayPal for well over 15 years.  I have never defaulted and have a tendency to pay in advance/early.  Out of the blue, I suddenly find myself no longer having access to Pay in 3 for no reason at all.  My credit rating is very good, I am not a criminal, I am a British resident etc etc. I meet the criteria which I have always done. The retailers I use are all offering pay in 3 for all items, from Asda to Boots. Talking to PayPal is a waste of time as the call centre will not disclose why the Pay in 3 has been removed.  I believe I have a legal right to know what is the cause of this happening

Ayr_Rage

You have absolutely no legal rights to know why you are being refused credit.

cymruchris

You don't need to be a criminal to be declined credit. They no doubt assess your current circumstances against their own criteria, and for whatever reason, they have decided at this time not to offer you the facility. There's usually quite a broad spectrum of data that they look at - and it could include your levels of existing debt, how you manage that debt, how often you've used the service. the values of products purchased over a period of time, and even possibly the number of defaults in your post code (sometimes it's nothing to do with your own behaviour and history). They won't tell you why if you call them up though, so no point trying that. It might be worth checking that the data on all three of your main credit reference history files is up to date and correct. Do you regularly check your reports?

sourcrates

Transfer of Services from PayPal (Europe) S.à r.l. et Cie, S.C.A. to PayPal UK Ltd 

@mairiT Probably nothing to do with you or the way your account has been conducted.

Currently PayPal pay in 3 is an unregulated credit agreement, you are not covered by the Consumer Credit Act nor does it have FCA approval.

One reason why UK customers may have had this service removed, is because PayPal UK Ltd are looking to become duly authorised to conduct its regulated activities in the United Kingdom by the Financial Conduct Authority (“FCA”).

PayPal (Europe) S.à r.l. et Cie, S.C.A. intends to transfer all services provided to its users in the UK to its affiliated company, PayPal UK Ltd, on 1 November 2023.

So Their pay in 3 option will either become a regulated agreement, or it will not be offered again in this country.

mairiT

Sourcates I had heard of the change over and wondered if this was the problem.  I have checked my credit status and all is well with the big 3 or 4 as be the case.  Anyway, no loss.  Thanks

mairiT

To all who replied thanks

born_again

Given your age, this maybe the issue. 

CliveOfIndia

born_again said:

Given your age, this maybe the issue. 

Any company that discriminated purely on age (and nothing else) would find themselves in very hot water.

For sure, if someone's only source of income is a pension and that doesn't meet a lender's minimum income requirements, then fair enough.  But they cannot discriminate purely on age alone (aside from the fact that you must be 18 years or older to get credit).

Nasqueron

CliveOfIndia said:

born_again said:

Given your age, this maybe the issue. 

Any company that discriminated purely on age (and nothing else) would find themselves in very hot water.

For sure, if someone's only source of income is a pension and that doesn't meet a lender's minimum income requirements, then fair enough.  But they cannot discriminate purely on age alone (aside from the fact that you must be 18 years or older to get credit).

Credit wise, it's a bit more complicated - many lenders have an age cap on taking out a mortgage (65-70 is the norm) and similarly, a cap for when it could be paid off (80-85 usually). This isn't illegal or age discrimination - you can see the details below

The exception provides that a person does not contravene the age discrimination prohibitions in section 29 of the Equality Act by doing anything in connection with the provision of a financial service. The exception means that it is not necessary to objectively justify any age discrimination in the context of financial services provision.

However, where a risk assessment is conducted for the purposes of providing a financial service, the exception will only apply if the risk assessment, in so far as it involves a consideration of the person’s age, is done by reference to information which is both relevant to the assessment of risk and from a source on which it is reasonable to rely.   

Customers need to remember that financial services providers can operate age bands and age limits for products and services, and it is not discriminatory, under the financial services exception, for them to refuse to provide you with a product or service because of your age.

https://www.equalityadvisoryservice.com/app/answers/detail/a_id/123

Dandytf

There's been a few Payin3 offers recently from £30 +purchases.
Today via Heatershop.