PayPal Credit Promotional Payment Allocation

[MrsDixon18]

PayPal Credit is using fraudulent deceptive practices when allocating payments towards promotional purchases. In 2015 CFPB ordered them to pay 25 million to its consumers for their shady practices. It’s 2018 and not much has changed. I have 24 month promotions and I have 6 month promotions. I make my minimum payment towards my 24 month promotions. And I payoff my 6 month promotions way before the end date. Most within a month of the purchase date. BUT PayPal Credit has this deceptive payment hierarchy where they allocate your payments so they benefit from accrued interest. So even when you make the minimum monthly payment and make extra payments to pay off your 6 month promotions, PayPal is not applying your extra payments towards the 6 month promotions. You have to call and ask to have your payments allocated towards the promotions or you’ll get stuck paying what I call the “stupid tax” 19.99% interest from the date of purchase. They bank on consumers lack of knowledge. They never communicate this in writing. They only tell you this when you call and complain. Extremely fraudulent deceptive practices. Shame on PayPal.

[jgatl]

You should be fine doing the two payments then. Check the PayPal Credit payment portal on 12/5 (after the autopayment applies), and you should see the payment correctly applied to your remaining 6 month promotional balance.

[Squashman]

@jgatl , confirmed the payment. Everything worked just like you said.  It made the minimum payment to my 24 easy payments and put the remaining money towards my 6 month plan.  Thanks Again, for doing all the heavy lifting on this topic. Knowledge is power as they say. 

[Squashman]

@chris-j 

I am wondering if that works the same way in the United States.

[mcousins4]

I feel the same. I have a specific balance I want to pay off, but there is no way to allocate the payment. It's very frustrating. However, I enjoy using the interest deferred option. 

[FraoFL79]

This is a clear violation of the conditions and agreement for the easy pay that stay that you have a minimum due. I paid all my 6 months promotions, I paid and I called right away to allocate the payments, they have not done so, and now they are asking me for a higher minimum due because their fraudulent system is not allocating properly by paying first the close to due date vs the easy payments of 24 months.

[tillkrueger]

I’ve said it before, here, and I’ll say it again: there is no sanity in what Synchrony Bank is doing with these loans. They will drive you to the brink of madness, and I only lived to tell about it by getting myself a 0% for 18 months card to take out a loan to pay off all my Synchrony debt in one lump sum. It was the only way to stop what had turned into something out of Black Mirror. These people have given in to the dark side and have given up on ethical thinking. Abandon all hope that they will change and choose life! Run, don’t walk away from these loans. When they started reporting them to the Credit Score companies, they eliminated the only reason why anyone would put up with their cynical game. There is a special place in hell for who came up with this scheme. Hear me now, thank me later, everybody.

[fearlessrick]

Everything is designed to benefit large corporations at the expense of individuals. It's a horrible system, currency based on debt issuance, but it will fail soon. Make the best of it, disregard your credit score (it's a form of economic slavery), and, if need be, default. The banks are all funded by the central banks (ECB, Fed(US), BOE, etc., so they can just write everything off should they please, because the central bank will simply counterfeit (magically produce more currency) more debt as currency to cover their preferred users (banks).

Cash, bitcoin, silver, gold, barter, eggs, butter, live chickens, not necessarily in that order. All forms of credit are corrupt, so any way one can escape them is a reasonable alternative. They will not survive. Central banks are living on borrowed time and make believe currency. Everything is soon to go up in smoke. That's all I have for now. Read my blog at http://www.dtmagazine.com. I've only been covering economics for the past 14 years, so maybe you can get an idea from my work, I hope. Best wishes to all. Any bank or financial institution charging interest rates of more than 6% should be shuttered.

[Temp20210715b]

What that bank is doing with the allocation of payments is totally deceptive and wrong.

So, what is the advantage of the 24 easy payments financing option if any amount in excess is applied to promotional 6 months no-interest if paid in full?

If I chose 24 easy payments it was because I want to pay in 24 easy payments, nothing less, nothing more.

This is completely nuts!!!!!

[Vellegazelle]

Yes, the APR is 29.99%!!! That is usury and is totally unacceptable in these current times. How they get away it is beyond my comprehension. Maybe they would comprehend a class-action suit.

[yumagrillmaster]

This is nothing new for Synchrony Bank, or the entire US banking system.  I believe it was in 2015 that Synchrony had to fork out tens of millions back to consumer accounts for deceptive credit practices.  I was a recipient involving a credit dental plan issued by them.  Same then as now.  Yes, you can call Synchrony and ask that your payment be applied as you wish.  Now here is a novel thought/remedy!  Give the account holder the option on the website to allocate their payments?  What a concept, but unlikely to ever happen because...  we all know the answer.  New year, new administration in D.C., new representatives.  Let's stop sitting on our duffs and take this on!