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.

[VegasVic]

You are correct, and it is outrageous. This is a brand new tactic with the PayPal Credit accounts acquisition by Synchrony Bank.

[lpolidora]

I'm paying off next month. Close this account out!

[OMac]

I'm certainly not amused. I just posted a large payment toward my 6 month balances and it all got applied toward the purchase that I still have 23 months to pay off. It's completely ridiculous. 

[VegasVic]

Call and politely request that they reallocate the payment to the 6 month purchases.

[tillkrueger]

The number of hours that I have wasted over the past couple of years calling PayPal Credit (Synchrony) to request a payment to be allocated like *I* want, is mind-boggling. The fact that they have to hand it over to some other team, which then takes "1 to 3 billing cycles" to properly allocate the payment is ludicrous. Are they living in the movie "Brazil", with messages in physical steam-punk capsules that are air-pressure transported to some mysterious 13.5th floor only to be archived there for further processing?

We are almost living in 2020, and why I can't just set a checkmark to a promotional purchase amount that I want to pay and then see my payment applied to *that* purchase, is...

I don't even know what to say anymore. They should be fined 2.5 Billion for pain and suffering caused!

[StaciG]

Class action!!

[jpski]

You have to call every month and get transferred 2 or 3 times, get disconnected, call back, get transferrred 2 or 3 times. Then when you get to the right person and ask, sure they will do it but it takes them 2 or 3 billing cycles so you are still getting accrued interest.

[hellokitty74]

They should allow to adjust how you want your payments allocated. Most cards do this. It's outrageous and feels deceptive.

[Temp20230526DN]

I experienced the same issue today.  I am fuming.  i have a 4 month promotion which ends on 3 Aug.  i have a balance of £98 left to pay on this plan which i paid a couple of days ago.  I made 2 payments, one for £98 and the other £31 against my minimum payment. i also have a 24 month plan which the first payment should be included in minimum payment.   PayPal took the £98 and cleared it against my 24 month plan which is only 22 per month and left the 4 month promotion plan balance still unpaid.  I don't see why they cannot allow me to allocate my own money the way i see fit.