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The shame of this is, everything worked perfectly before Synchrony took it over. Payments were applied automatically in a natural, logical progression. Synchrony is certainly to blame, but PayPal shares blame as well. I understand them wanting to make a better deal on their servicer, but when they switch they should make sure the same terms for their customers stay in place.
Just wanted to pile into this to air my complaints too - I've found PayPal credit so incredibly frustrating that I probably won't use it in the future.
I currently have (or rather did have) 3 different Buy Now Pay Later type transactions on my account. All purchased at different times, one was a 12 month thing, the other 2 were 4 month interest-free offers.
I have a bunch of issues with the way PayPal credit works and the usability of it in general. Including being able to see how past payments have applied to the various balances. But by far the most frustrating part of this service is the complete lack of clarity on how payments are allocated or any other detailed information full stop. It has completely messed up my budgeting and it drives me up the wall that I can't personally decide how payments are applied per outstanding balance.
It worked it out something like this (rough numbers for arguments sake):
Purchase 1: £360 (12 months)
Purchase 2: £160 (4 months)
Purchase 3: £400 (4 months)
So I said okay each month P1 needs £30, P2 needs £40 and P3 needs £100 - I'll make my payment £170 for this month. Not only did it not apply anything close to that, and not only do I have NO IDEA how my payment was distributed, I ALSO got charged the original minimum payment amount on top...
All I know is one of the items I had three or more payments planned out is now fully paid off while the others have less paid than expected.
Sorry for not posting this sooner, but I continued to research and the media rep for Synchrony directed me to the LAW governing this.
Yes, once again, we can thank our benevolent legislators in congress for creating an environment that favors their campaign contributors, the banks, not their constituents, consumers. What Synchrony does is in accordance with Regulation Z. Here's my updated blog post, explaining it all:
Here is my original blog post:
Sorry, folks, that's the way it is. Banks and financial companies get to **bleep** you, with a blessing from congress.
You will need to look at your minimum payment required. It should be the "easy payment" amount required (£360/12 = $30) plus the minimum on the remaining 4 month same as cash. I believe this is a flat £28, although it's changed a few times since I wrote my first post. Unless you have a 4 month same as cash balance expiring next month, the £170 payment will be allocated as £28 to one of the 2 same as cash balances, and the remaining £142 will be allocated to the £360 balance until it's paid off. When you call in to reallocate your payment, I'd recommend allocating the £112 (£170 -£30 for easy pay balance -£28 for minimum payment) to one balance (such as the £400 one) until it's paid off, then continuing the £112 allocation until the £160 is paid off.
One final tip, if you have a month where your payment will allocate across the two 4 month balances (£160 and £400), adjust your payment slightly so you only pay off one balance. In your example, in the third month the £400 balance with a £170 payment (£140 net) will result in £20 being applied to the second balance. So adjust the third month payment to £150 and the fourth month payment to £190. Asking PPCredit to allocate across 2 balances is asking for trouble. They will invariably do it incorrectly.
Totally agree. I have wasted hours of my time contacting customer service to try to pay off my balances properly. There is no easy way to do this, and once you finally do, you have to wait, nervously, 1-3 billing cycles to see if they actually did what you asked! In my case, last time they didn't!! So...I had to call back and complain again to get them to fix their admitted "mistake!" I thought they passed a law ending these types of shady banking practices during the recession. I am currently paying off all of my balances, and then I will stop using PayPal Credit altogether. I will never do business through Synchrony Bank again, and I urge you all to do the same. I have good credit and, therefore, many other options. This is unacceptable on every level, and this is the first time I have EVER dealt with this type of filth from a credit company.
Same thing is still going on 2020 in UK. I just sent an email about it to their customer service. I hope I won't have to call them next week.
@Pobe Call in and ask for a supervisor. Tell the CSR you have had payment allocation problems and that a previous supervisor told you to ask for them.
Some good points to follow:
I highly recommend building a spreadsheet of your balances, with one set of columns representing the balance(s) owed and another set of columns representing the payment made against each balance. The rows represent each billing period. Match that spreadsheet up with your statement and put comments on the specific balance column (or payment portion allocated against that balance) when you call in with notes from your call. It makes it much easier to track down historical changes rather than flipping through statement PDFs.
2020 in the UK and I too have just come across this DISASTROUS customer service.
I paid the first instalment on a 12 month interest free credit offer, then tried to make a payment against a shorter 4 month interest free deal and found that this payment was allocated to the 12 month deal - leaving me no way to pay off the 4 month deal unless I now clear the whole of the 12 month deal first.....
This is a scam as far as I'm concerned and needs another legal hammering