Beware Paypal Credit - Musk didn't become a billionaire for nothing

gropes

I've just had a shock to find I had nearly £2k worth of uncleared balance in my Paypal Credit.

It started when I made a few large purchases a couple years ago on pay in 3 or 4, I assumed my payment to PP credit would be adjusted accordingly so I wouldn't incur interest.

I also started using PP credit for smaller purchases on Ebay and so on as it said it'd only pay seller once goods was received. 

What I didn't bother checking was that PP only pays the minimum every month irrespective of the item, so you'd have to instruct them every month if you want to clear more of it. Purchases under £99 were just credits which incur interest if not cleared. So my credit account got near it's limit and I realised I'd been paying interest all this time.

I've also discovered how utterly confusing the site and app are; from the mismatch between when you're credited and when the money leaves your bank account (which surprisingly is quite a few days grace); to finding your correspondence with agents; to your instructions being ignored / not updated. 

I needn't have taken any of those credits. I just thought it was convenient and made assumptions. That's how they get you.

I pointed out to their agent how utterly confusing their app and site are I got the auto response of 'I'm sorry you feel this way'.

I've also used Klarna which is great, and schedule the payment for each purchase separately so you don't incur interest.

Whereas Paypal deliberately obfuscates you.  

I've cleared the account now and will not use it again.

I know Musk doesn't own Paypal anymore, but you can tell how he got where he is!

born_again

gropes said:

I've just had a shock to find I had nearly £2k worth of uncleared balance in my Paypal Credit.

It started when I made a few large purchases a couple years ago on pay in 3 or 4, I assumed my payment to PP credit would be adjusted accordingly so I wouldn't incur interest.

I also started using PP credit for smaller purchases on Ebay and so on as it said it'd only pay seller once goods was received. 

What I didn't bother checking was that PP only pays the minimum every month irrespective of the item, so you'd have to instruct them every month if you want to clear more of it. So my credit account got near it's limit and I realised I'd been paying interest all this time.

I've also discovered how utterly confusing the site and app are; from the mismatch between when you're credited and when the money leaves your bank account (which surprisingly is quite a few days grace); to finding your correspondence with agents; to your instructions being ignored / not updated. 

I needn't have taken any of those credits. I just thought it was convenient and made assumptions. That's how they get you.

I pointed out to their agent how utterly confusing their app and site are I got the auto response of 'I'm sorry you feel this way'.

I've also used Klarna which is great, and schedule the payment for each purchase separately so you don't incur interest.

Whereas Paypal deliberately obfuscates you.  

I've cleared the account now and will not use it again.

I know Musk doesn't own Paypal anymore, but you can tell how he got where he is!

Just shows that you need to keep on top of any credit taken out.

Did you not notice that the actual amount you were spending was not debited from your bank account?

CliveOfIndia

gropes said:

I just thought it was convenient and made assumptions. That's how they get you.

To be fair, this is a very good example of why you need to read and understand the T&Cs of any contract you sign up up, arguably even more important where financial products are involved.  If you made assumptions without reading the information they've provided, I fail to see how you can blame them.

mr_stripey

I've used the PayPal pay in three scheme a couple of times and it did exactly that - I got an email schedule of three equal payments and they were duly debited as agreed with no interest.

Ultimately you need to be logging in regularly and checking your balance on any account you have. You have obviously failed to reconcile your purchases with money actually leaving your bank.

CouldntResist

"System of borrowing money appears to give profit to lender if you don't bother to check you are clearing balance" shocker...

noitsnotme

Musk sold Paypal to eBay in 2002 and Paypal credit only launched in 2016 so he didn't make any money from your situation.

Nasqueron

noitsnotme said:

Musk sold Paypal to eBay in 2002 and Paypal credit only launched in 2016 so he didn't make any money from your situation.

Shame, he could do with it given how much he's losing on Twitter and Tesla heading down the toilet

gropes

I'll be the first to admit it was entirely my fault. 

I use Paypal for lots of payments which come straight out of my bank account.

It's no excuse for the labyrinthine site and app though.

fergie_

I really like PayPal credit. I can plan a purchase over £99, pay the minimum amount for 3 months and then clear the balance near the end of month 4. It shows clearly when the credit plans end and it is only 1 credit application for ongoing usage.

The only aspect I've not tested is whether interest is backdated (like store cards used to do) or only starts from the end of the 4 month period.