Paypal Credit no default letter— [FOS Complaint Update] PayPal Tried to Offer an Interest-Free Settl

PanAction25

Paypal Credit has reported default on my credit report but I’ve received any letter from any debt collector or third party about making payments.

Should I contact PayPal credit or wait to receive a letter about making payments. 

Many thanks in advance. 

sourcrates

PayPal normally use Wescott as collection agent.

As we`ve said 1000 times on these boards, nothing moves very fast in the debt collection world, but at some point you will be written too.

I wouldn`t go chasing em if I were you.

PanAction25

sourcrates said:

PayPal normally use Wescott as collection agent.

As we`ve said 1000 times on these boards, nothing moves very fast in the debt collection world, but at some point you will be written too.

I wouldn`t go chasing em if I were you.

PayPal Credit  has registered the default but I got an email today asking me to call them in order to set a payment plan.  Should I engage them or should still wait for them to refer to a DCA? 

ashamedjelly

There was a gap of around 4 months from the time PayPal reported a Default to the credit agencies before I had a letter from Lowell to say they had bought the debt. 
As sourcrates mentions above - nothing moves fast in the debt collection world. Sit tight and don't engage. 

PanAction25

[FOS Complaint Update] PayPal Tried to Offer an Interest-Free Settlement

Just wanted to share a quick update on my irresponsible lending complaint against PayPal Credit.

I raised affordability with PayPal Credit for credit increased from 2019 onwards. Last week I got a response from them not upholding my complaint but they did state that my account  has been defaulted confirming the default mark showing  on my credit file.  They also stated that “ To reach a positive resolution, we would like to offer you a goodwill gesture of £250 GBP.”

I didn’t respond to PayPal Credit offer of £250, but I escalated the complaint to Ombudsman. 

After I escalated my case to the Financial Ombudsman Service (FOS), PayPal contacted me directly this week with an offer: an interest-free payment plan to pay off the balance.

I confirmed that my complaint is now with the FOS, and they said they would keep the interest-free offer "on my account" and follow up in 30 days to try and formalise it.