PayPal credit - missed payment

virginblue4

Hi all,

I have a PayPal Credit account which is 0% interest, and I regularly overpay it. I’ve never deliberately missed a payment and, as far as I’m aware, I’ve never had a missed payment on my credit file.

My monthly payment is £20 but I always pay £30, sometimes more.

About 16 days before the actual payment due date, I manually made a £30 payment towards the account. Unfortunately, I accidentally selected the wrong debit card when making the payment. There wasn’t enough money in that particular bank account, so the payment was returned.

I realised my mistake and made the £30 payment successfully the following day — so the £30 was paid approximately 15 days before the actual contractual payment due date.

I’ve now received an email from PayPal saying:

“Your recent payment of 30 GBP could not be processed due to insufficient funds, resulting in a returned payment fee of £12 being applied to your account.”

It then says they’ve attached a Notice of Default Sums, and the email includes the following:

“We report missed payments to the Credit Reference Agencies which will impact your credit score.”

I’m absolutely baffled by this.

I understand that the first payment was returned and that their terms may allow them to charge a £12 returned-payment fee. What I don’t understand is how this can be considered a missed payment, when the actual payment wasn’t due for another 15 days and I had already successfully paid the £30 by then.

I’m particularly worried about this being reported to the credit reference agencies because I’ve never had a missed payment before and I’m very careful with my credit. I’m also remortgaging in around 8 months.

Can PayPal Credit actually report this as a missed payment when the contractual payment was made 15 days before it was due?

flaneurs_lobster

Does sound wrong, although fair enough the bounced payment fee.

I'm guessing that their systems are just being simplistic and assume that no further payment will be made before the account due date and they have included a bunch of hyperbole to make the point that A PAYMENT MUST BE MADE.

Specifically, the quote about reporting to the CRAs says "missed payments" will be reported, not that a report has been made.

Maybe ask the question directly of PayPal?

Sherlock33

If they've charged a fee of £12 and your monthly payment is usually £20, is the £30 payment you made £2 short because of the fee?

sourcrates

Its a standard generic message that takes no account of the specific circumstances.

You will not get a missed payment marker as you made a second payment before the payment due date.

The generic message assumes your first payment, that failed, was the only one you made.