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Direct debit instructions ignored

Posted on

DD=Direct Debit
PPC=Paypal Credit

My Bank = MONZO Bank UK

The direct debit for which I've given the necessary details to PayPal on 26th of August 2021 to set up with my bank was never set up by Paypal, as confirmed by my bank also over the phone. I was also always able to check on my bank app, because I see any new DD on my bank mobile app. With other words PayPal has never initiated the DD procedure or sending anything to bank. They've just IGNORED it.


This happened while I actually double checked much before and tried to avoid this by calling PPC both on 26th of Aug 2021 and on 22nd of Sept 2021.
On 26th of Aug they did not informed me that the £100 minimum payment I setup with them  through Paypal's credit (incomplete and confusing) web page interface, while also on the phone with a PPC agent, is going to be ignored, (because it's not before the first statement issued on 24th of Aug.-as they explained me only later in 22nd of sept 2021, even if I specifically asked them to advice me how to setup payments with them so I don’t have any missed payments)

On 22nd of sept 2021, seeing only £5 minimum payment was paid on 18th of sept when they charged me, I called them again.  I was still not properly informed when I've specifically called and asked about these details, that there is no DD properly setup in place, and even worst even the £5 is actually NOT PAID YET. 

While they've actually sent this in an email on 26th of Aug 2021 at 14:33
"From your next statement, we'll automatically debit £100.00 GBP each month from your bank account, ending <<****>>, on your payment due date. "
In my PayPal Credit online account there's nothing, no trace about this DD, or any DD previously/currently setup.


I've also had this email on 3/09/2021:




On 26/09/2021 late in the evening I noticed they returned the £5 already paid and showing on my PP account as paid and green. Too late to call them, so I called PPC again next day on 27th of sept. At this time I had NO message on PP credit interface were I believed I should actually see EVERYHTING regarding my credit account, There was only a stupid email on 25th/09/2021, which I found later while on the phone with the agent from 27th of sept. At this time the minimum payment was already a missed payment.

Email was saying :


"A Direct Debit payment of £5.00 GBP to your PayPal Credit account ending in 5028 has failed. A late fee of £12.00 GBP will be added to your account if your minimum payment amount was not made on or before the payment due date.

If you do not make your minimum payment on or before the payment due date, we’ll add the overdue amount, including the late fee,  to the minimum payment due on your next statement. We'll email you in advance of your next payment due date to let you know the exact amount we plan to take by Direct Debit."


I was left totally confused when I asked

1. Why was there £5 taken on Sept 18th  to be returned on Sept 24th . And I was only informed over email on 24th (after the next statement was issued with a missed payment on it) ? 

2. Why I was not informed over the phone when I called and asked this specific questions about what I have to do to not miss payments. I was assisted into doing same thing already done.

3. How much time it take to have a DD instruction setup/ rejected by PP or the bank. I got only evading replies.


I've tried to suggest them that their web interface is incomplete and deceiving while this is not showing up all the time the status of the DD in place, and I had to deal with agents with inadequate training, only the last one on 26th of Aug to escalate to other department, which eventually made no difference than a very stupid general reply on the PayPal useless "Message Centre".


On this last call from 27th sept I was asked while complaining and asking explanations for the above, if I want them to setup the DD manually and I've answered to their question with NO , because for now I want pay myself manually and try to check in the meantime what is/was wrong with the previous DirectDebits setups that were ignored.

Even so, after this call I've received an email with  "Thank you for completing your Direct Debit Instruction", including a "Service user number" and a "Reference number" for the first time. Previous emails confirming the DD setup were each one a different version. The titles were the same fort first two, but with different content.

"You've successfully enrolled in PayPal Credit Direct Debit" was the email title from 2 Aug 2021, 12:02 & 22 Sept 2021, 16:34 (8 days ago)


I've also been told on this last call from Aug 27th that on Aug 24th they received "Instruction canceled by bank or by customer". I replied that I did not canceled the transaction, and my Bank account had sufficient amounts and they never canceled any DD. Actually there was NEVER a DD setup. I've told them this and I've been contradicted like a fool each time, agent repeating himself like a robot and arguing that PP system is flawless, when I tried to suggest that they may have issues either with their system or with incompetent employees if anything required manual input.


All my statements are documented by print screens and recorded conversations for personal use. While mentioning this, I also remember the last but one agent, with a hard to understand Scottish accent, had the audacity to tell me he does not give me his "personal permission" to record the conversation when I was kind enough to let him know I'm recording my conversation with PayPal , that was  anyway recorded by PP too. I knew I'm not required by law to inform him and it's totally legal to record him, which I've tried to let him know also, but he was interrupting me with an unbelievable arrogance, repeating same sentence just to cover me.



I'm very upset and frustrated about my experience and, and while I've properly setup the DirecDebit on 26th of Aug and also again, twice, on 22nd of Sept from the PayPal Credit Interface, besides also calling to be sure, PPC agents affirm that my bank has rejected the DD on 24th of sept and that is the reason that the £5 already paid in 18th are actually not paid( while also the £5 min payment should have been a £100 min payment). I truly believe the bank never received the DD mandate/instructions.

I think I might have my credit score affected due to the above.

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