PayPal credit CCA request/F&F

freshstart2023

Hi guys, my PayPal credit account was recently sold to Lowell. They have written to me today offering a 70% discount and I’m tempted to try and get the funds together. Does this seem like a good offer for such an account? Also with regards to CCA requests for PayPal Credit, is the process the same as if it were a credit card? Would you do this first? Thankyou 

sourcrates

No, PayPal UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA) as an electronic money institution under the Electronic Money Regulations 2011 for the issuance of electronic money in relation to its regulated consumer credit activities under the Financial Services and Markets Act 2000.

It is not however governed by the consumer credit act, so non of the sections of consumer credit act applies to PayPal's services.

freshstart2023

Thankyou. I’m a bit concerned about the wording, if I opt to make payment of the reduced amount..will this prolong the negative impact on my credit report? 

Accepting the discount may affect your credit file. The account will show as 'partially satisfied' for up to 6 years after you have paid the discounted balance in full. This can affect your credit rating and may affect your ability to get credit in the future.

sourcrates

How long since the account defaulted?

Defaulted debts will show for 6 years, from the date of default.

After which they are automatically removed regardless of what you do, pay it, don`t pay it, full settlement, partial settlement, doesn't matter.

freshstart2023

Thankyou, I opened the account April 2018 and it defaulted Feb 2024. 

ManyWays

sourcrates said:

No, PayPal UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA) as an electronic money institution under the Electronic Money Regulations 2011 for the issuance of electronic money in relation to its regulated consumer credit activities under the Financial Services and Markets Act 2000.

It is not however governed by the consumer credit act, so non of the sections of consumer credit act applies to PayPal's services.

PayPal seems to have 3 FCA-authorized entities, one of which (https://register.fca.org.uk/s/firm?id=0014G000039dULGQA2) is a normal consumer credit act lender. 

freshstart2023

I have checked and Lowell appear to have a credit agreement regulated by the consumer credit act between myself and PayPal (Europe) Luxembourg. Any opinions on this would be much appreciated? Thanks 

sourcrates

freshstart2023 said:

I have checked and Lowell appear to have a credit agreement regulated by the consumer credit act between myself and PayPal (Europe) Luxembourg. Any opinions on this would be much appreciated? Thanks 

How do you know this, have you requested a copy?

freshstart2023

No but I have logged into the Lowell portal and didn’t realise that they have attached the CCA to the account, without me requesting it. Does it make sense that it states they are regulated by the consumer credit act when they are in Luxembourg? 

freshstart2023

This is what it says, have cut it here as it goes on to give my personal details 

sourcrates

I knew they were recently FCA regulated for certain financial products, so I guess I stand corrected.

You have the CCA there anyway, so you can`t request it again.