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DO NOT USE PayPal Credit Card. Interest Fees Are a Scam and their business practices are dishonest

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Jason80
Contributor
Posted on

I've been using PayPal  for over 15 years so I decided to try giving their credit card  after getting a promotion for six months no interest.

 

I set up auto payments thinking it would automatically pay the account off when  it became due, but it did not. So, I was charged almost $200 in interest fees, and although I paid off the balance when I saw what had happened just one week later, they would still not waive this interest fee. Any other credit card company would have waived this fee, but PayPal is sticking to their dishonest business practice of not notifying you that the auto payment will not pay off  the balance, and they will not waive the interest fee even though you paid the balance off immediately after becoming aware. They also DO NOT CARE how long you have been using PayPal.  

Needless to say, do not sign up for their credit card, even from a promotion. IT IS A SCAM!

14 REPLIES 14

DO NOT USE PayPal Credit Card. Interest Fees Are a Scam and their business practices are dishonest

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Whac-A-Mole
Frequent Advisor

but did you get 6 months interest free?

DO NOT USE PayPal Credit Card. Interest Fees Are a Scam and their business practices are dishonest

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Jason80
Contributor

Yes, but I didn't even need it since I could have paid it immediately. I thought it was a cool promotion to delay a payment, but got sucked into their trap instead.

DO NOT USE PayPal Credit Card. Interest Fees Are a Scam and their business practices are dishonest

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Jason80
Contributor

Wow, just checked my last statements, they were also charging me a few dollars in monthly interest too! After I set up auto payment to avoid monthly interest charges?!

DO NOT USE PayPal Credit Card. Interest Fees Are a Scam and their business practices are dishonest

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Jason80
Contributor

Just called support to get clarification. So they said some charges didn't fall under the promotion, so those had to be paid off and auto pay wouldn't cover it so I was charged interest. So shady, no notification was ever given, I only found this out because I looked at my previous statements after getting the last BS interest charge. Never using PayPal credit card ever and will make sure I let everyone know why they should use regular credit cards from the major banks instead. Ridiculous.

DO NOT USE PayPal Credit Card. Interest Fees Are a Scam and their business practices are dishonest

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sharpiemarker
Esteemed Advisor

DO NOT USE PayPal Credit Card. Interest Fees Are a Scam and their business practices are dishonest

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SteveLR
Member

Except a case they didn't apply what became an overpayment according to their own procedure. It was paid for the actual due date on an interest free item but instead it got applied to the longer term items instead and left it with a balance on the item it should have cleared. What followed was a complicated explanation when told a wait was needed for the statement 3 weeks after the date it should have been paid, that would have made the payment late as it was a 3 month interest free deal. There was a much complicated resolution that involved cancelling the entire transaction and cancelling the monthly direct debit allocation to put the right money to the right items, leaving this overpayment that then got applied in full to the second item on the 24 month interest free balance and not across all 12 items as they state in their policies. Gave up at this point and just let the 24 month deal run its course without using it for any other deals. Now have a 3 month interest free but decided to make 3 instalments, the first one just took their standard minimum payment instead of what had been set up, they shouldn't have taken that as the entire deal was 3 months interest free. Have set up a direct debit for the balance over 2 equal payments, will watch and see if the first one is taken on time for the right amount. The FCA exists in the UK for making complaints about banking errors and not for the first time can make use their services if PP don't get it right, quite happy to be paid compensation for the time, GBP200 and counting as am not greedy, it can take a lot of far more valuable time. Pensioners don't have many years ahead of me to waste on other people's errors. Have had a government department climb down to avoid an High Court case so little (big) organisations are not a problem, delays will only cost them more, GBP500 and counting. It could almost be worthwhile operating this as a business to force companies to adopt good practices and not abuse their users.

You need to complain to the bank first and then the FCA if they fail to address your problem, in that case a few million other people could also be in the same position. Take them on when it is apparent many others are suffering and unable for many reasons to be able to get their problems corrected, always go public and refuse any cover ups.

DO NOT USE PayPal Credit Card. Interest Fees Are a Scam and their business practices are dishonest

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SteveLR
Member

Cannot believe that had to remove all pronouns and currency before it would post, so please excuse what appears to be poor English, PP censors before a post can be made public.

DO NOT USE PayPal Credit Card. Interest Fees Are a Scam and their business practices are dishonest

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orange_the_meow
Contributor

Can't agree more. I used a 6-month interest free promotion just for fun and set up auto pay to avoid interest but somehow saw an interest charge in my statement. I'm going to ask them to waive the interest but don't know if it will work.

DO NOT USE PayPal Credit Card. Interest Fees Are a Scam and their business practices are dishonest

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Nazy
New Community Member
I have the exact same issue with PayPal. I NEVER use their credit card as I have my own credit card set up online. Somehow, the payment was changed to PayPal 's which was never my intent to do. I have paid the full amount minus the insane interest fee for one month it was over $100. I find this business absolutely dishonest.

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