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Hello. According to the "Important Information about PayPal Credit" enclosed with my monthly statements, the amount to avoid standard and deferred interest on my next statement includes (amongst others) and Deferred Interest Purchases expiring next billing cycle. These are the only two types of purchases I've made to date.
Why is my Amount to Avoid Interest on my statements so much higher than just the sum of my Standard Purchases and Deferred Interest Purchases that are about to Expire? For example: On my current statement (closing date 08/02/16), the one Standard Purchase and two Deferred Interest Purchases that expire 08/27/16 total $188.38. Why to I have to pay $444.36 (according to my statement) to avoid interest on my next statement?
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I spoke with PayPal.
The rep said they never apply payments to the Standard Purchases, only to the Deferred Interest Purchases, but I have to pay the sum of the Standard Purchases to avoid interest on my next statement. If I pay the amount of Standard Purchases (and the amount of Deferred Interest Purchases expiring in that billing cycle), the payment does not go towards the Standard Purchases, it only goes to Deferred Interest Purchases.
So, I have to pay the SUM of all my Standard Purchases, over and over, every month, to avoid interest, but paying that amount doesn't pay off the purchases. I'm a rocket scientist, and that still does not make sense to me! I have paid my March Standard Purchase four times already and it's still on the books! I'll pay it, again, this month -- along with every other Standard Purchase I've made since and already paid multiple times.
I had a Standard Purchase due in January, why didn't that carry over? My Standard Purchase Balance went back down to zero, after I paid the Amount to Avoid Interest in full. BAsed on what the rep said, my payment should have only been applied to later Deferred Interest Purhcases.
Which brings me to another question. Why does PayPal apply payments only to Deferred Interest Paymnets when I have decided to take more time to pay them off? That is, why isn't PayPal paying off Standard Purchases first and allowing me to take the full six months, say, to pay them off, if that's what I've decided to do. (I don't mind if they apply any amount I've paid, in excess of Standard Purchases, to Deferred Interest Purchases -- that's great, I expect it -- but to make me pay the amount of Standard Purchases and, then, only apply it to Deferred Interest Purchases, to me, is absurd!
I asked the rep, "Ya mean there is no way I can pay off the Standard Purchase Balance!!??" And he said, "Well, if you want to pay off the balance of the entire statement at once, that would include the Standard Purchases. But, we're going to apply the payment to all -- all the promotional purchases first, THEN the Standard Balance." (That's as close as I can come to his exact words.),
Well, at the end of the conversation, I inquired about calling and asking them to apply a specific amount of my payment (made online) to the Standard Balance. He did not once suggest that, before, during our converstaion.
CONCLUSION:
I told the rep that I would pay, this month, the Amount to Avoid Interest, then call and allocate the amount of the Standard Purchases Current Balance to be paid out of that money.
It was the only way I knew to end it.
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You need to look at all of your previous purchase details AND interest charges that might be due?
It's not possilbe to give an answer based on you limited information.
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I was writing this to DPCreations' reply -- at the same time Shariemarker was writing. So, I will post it anyway.
Well, I just wrote to Customer Service and asked them.
I have not paid any interest this year and have paid more than the "amount to Avoid Interest" each month, all this year.
All Deferred Interest Purchases were "No Payments - No Interest if paid in full in 6 months" -- the balances of two now due (8/27) to avoid interest. I have no balances carried over from not paying past Deferred Interest Purchases by due dates.
I went back through my statements for all of this year and some of last year. Everything is OK (the Amount to avoid interest is Standard plus Deferred Interest Purchases) -- until May. Then, the amounts to avoid interest were increased -- always by the amount used to calculate interest on Standard Purchases the month before. [Example: On my current statement, the Standard and Deferred Interest Purchase (expiring this month) total $188.38. I'm told to pay $444.36 to avoid interest on my next statement. The difference between $188.38 and $444.36 is the amount of the "Current Balance" in the Interest Charge Calculation section (for Standard Purchases) of my LAST statement ($255.98).]
So, I'm wondering why that "number" is added in to the Amount I have to pay to avoid interest. (Every month, that "Current Balance" in the Interest Charge Calculation section goes up! How long can I keep doing that? ... unless I stop spending... and stop using PayPal... ?)
I'll see what Customer Service says. 😞
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There should be a contact number on your statement for inquiries. We do not have access to people's accounts to make adjustments, etc. It could very well be an error in billing.
otherwise, you can find contact info here: https://www.paypalcredit.com/index.html
Kudos & Solved are greatly appreciated. 🙂
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I assume you are looking at the detailed PDF statement. If that is not correct, then you need to download the details.
There will be a section "INTEREST DETAILS"
What does it show for interest charges?
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Yes, I was looking at the detailed .pdf statement.
On this month's statement (closing date 08/02), the Interest Details for Standard Purchases, reads:
STANDARD INTEREST CALCULATION
Balance Type: Standard Purchases
APR: 19.99%
Balance Subject to Interest Rate: $0.00
Interest Charges: $0.00
Current Balance: $274.33
Last month's statement (closing date 07/02) reads:
STANDARD INTEREST CALCULATION
Balance Type: Standard Purchases
APR: 19.99%
Balance Subject to Interest Rate: $0.00
Interest Charges: $0.00
Current Balance: $255.98
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The second aprt of the Interest Details is "deffered intrest calculation". What does that show?
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These are the only two (2) purchases that expire this month (08/27/16):
Promotion Type: No Payments Until 08/27/16
Posting Date: 02/13/16
Annual Percentage Rate(APR): 19.99%
Expiration Date: 08/27/16
Monthly Accrued Deferred Interest: $1.69
Total Accrued Deferred Interest: $13.60
Deferred Interest Balance: $23.53
Promotion Type: No Payments Until 08/27/16
Posting Date: 02/23/16
Annual Percentage Rate(APR): 19.99%
Expiration Date: 08/27/16
Monthly Accrued Deferred Interest: $2.48
Total Accrued Deferred Interest: $12.99
Deferred Interest Balance: $146.50
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