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I have never used a cash advance on my credit account; however I have been charged every month since I opened the account for interest charges on a cash advance. HMMMMM I have sent letters to both PayPal and Synchrony Bank with hopes that someone fixes the problem, so far it hasn't been fixed the fees are continuously on my bill.
The situation you mentioned with the interest charges is a definite concern! However, since PayPal Credit accounts are issued and serviced by Synchrony Bank, it's best to pursue this with them. I recommend calling their Customer Service to address things directly. You can reach them by calling 844-373-4961, M-F: 8am - 11pm and S-S: 9am - 9pm Eastern Time.
PayPal cannot address this issue since our Customer Service is separate from PayPal Credit's Customer Service (due to credit industry regulations) and we have no way to review your PayPal Credit account.
I hope this helps clarify things, at least in terms of who needs to address your concern. Thanks for taking the time to post your message here on the PayPal Community Forum.