Paypal credit not paying off phone contract

[Lans91]

Hello, i have 3 paypal credit transactions open, two are promotional offers where i dont have to pay for 4 months with no interest and one of them is 0 interest voxi phone contract that i was originally paying £29 a month for. The problem arose when i start trying to pay off the two promotional offers early and realised that the payments were being taken off my phone contract. I rang paypal and they refunded the payments to my account and advised putting the money to one side until the promotional offers needed paying in full. But now my phone contract is saying that there are 0 payments due even though there is still over £200 to pay. My paypal credit direct debit has also raised to £51 and still doesn't seem to be coming off of my phone contract... Has anyone experienced anything similar? Im worried this is affecting my credit report. Any advise or help would be much appreciated Liam

[f3nners]

Similar here and just posted my episode.  Basically they are saying that your phone contract is interest bearing so they pay it off first and leave the interest free offers until you either:

a) Pay off the full amount of your interest bearing loan, your phone contract (negating the affordable 12 month agreement you wanted anyway)

b) Let you interest free purchases turn into interest bearing purchases and then pay them off as and when, then paypal make more money from you as interest is applied.

Its a scam, they are willingly letting ppl fall into this trap and know for a high percentage of people they cannot afford to pay off large chunks of money so charge you interest/fees when the interest free period runs out.

Paypal need outing as scam merchants and if I were you mail the financial ombudsman asap and complain about this dishonest practice.

[Lans91]

Youre right, ive read through your own issue and its exactly the same. This whole system, whichever way you look at it, is wrong. The only party involved who benefit from this are PayPal. They should give the option to choose which outstanding amount you want to pay off. The only thing i can think of is that when they issued the refund on my credit payments its also wiped the instalment plan on the phone contract. But regardless, like you’ve pointed out, it feels like a bit of a trap that people can fall into if they aren't paying attention (which I'm sure paypal aren't too worried about!)

[Lans91]

From my statements, it also turns out that im being charged small amounts of fees and interest. Even though all of my paypal credit transactions are 0% interest. I am going to be getting in touch with the correct authorities like you have, this whole thing feels very misleading and dishonest. Will not be using PayPal credit again.