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.

[missallocation]

I have normal interest debt, 6 months no interest debt and 12 easy payment debt.... they applied all my payments to the "12 easy payment" debt so i accrued interest on the others ... after 3 months the "12 easy payments" was down to almost nothing while the normal interest debt was untouched...??!!!!

This is the definition of deceptive and predatory lending....!!!!! Watch out if you have multiple terms and types of debt.

[jpski]

That is exactly what they do and it doesn't matter if you call and ask them to allocate. They do exactly as they please. What I have done is look at the minimum to avoid interest and that is all that I pay, even though I would like to pay more some months. This has completely eliminated them allocating as they please. They have to put the payment towards the 6 month item that is expiring and the extra is the easy pay payment for that month. Works fine for me. I am just using their money longer. PayPal thinks people are too stupid to figure that out.

[dawatson]

I have begun the process in filing a class action lawsuit.  We are doing the research required to get the terms right.  It will be hundreds of millions of dollars and we expect them to settle, continue to do the same thing, and then we will sue them again as there is no double jeopardy requirement for these types of lawsuits.  As long as they don't correct the issue, we'll keep taking their money.  If you're interested in joining the suit then please express interest here.

[jpski]

Count me in ...jpski

[tillkrueger]

Gladly

[StaciG]

100% I'm in!

[normalgarments]

Any updates on this, utterly horrendous behaviour from PayPal in regards to this. 

[dawatson]

We've chased it to the end.  What they are doing is legal.  It's a trick, it's immoral and wholly and truly wicked, but they are allowed to do it, so they do.  Synchrony hides behind human error, and otherwise simply takes advantage of it's customers.  0% interest for 6 months is a total scam and they know it.  I have an administrator on the record saying that they make millions by bringing people into those "promotions" who have no idea how to get out without paying interest, which again, is legal.  There is a way out of course but it is complicated and few people make the effort.  It's a shame.  I'll never do it again, and neither should anyone else.

[Kidkoffee]

Absolutely in.

[Seanm57]

It gets worse. I called about this. 3 payments that were applied to 24 month financing instead of 6 month interest free balance. They said it would be corrected. While waiting a new payment came due. Paid that with a little extra and then a week later they applied the extra from that single payment to my 6 month balance and nothing else. Ignoring the $1400 from the previous 3 payments that I originally called about.