12 months interest free instalments v 4 months 0% PayPal credit Payment allocation

[troubleonline]

I have 5 instalments left to pay for an item purchased from Dyson on a specific 12 months interest free instalments PayPal plan (at £33.25 per month til end Feb 2020).  

Last month I bought something else online and 'paid' using PayPal credit because it was for £200 I was eligible for 0% for 4 months (til December).   My intention is to clear that 'balance' before end of interest free period by paying money to that balance each month.  I expected that the 12 monthly instalments would continue as normal and any additional manual payments would be assigned to the purchase but not convinced that this will happen as my monthly instalment has increased from 33.25 to 38.25 but none of the additional £5 went to the £200 purchase.  It went to the Dyson purchase.

If PP assign all additional payments to the Dyson balance then I will still be left with all or most of the £200 PayPal Credit balance come the end of the 4 month interest free period.  I've just made a £50 payment but as was made same day that statement generated I cannot see until end of month where that payment is allocated but I am guessing that since they allocated the additional £5 to the other balance they will do the same with the £50.

That in my mind is misleading / unfair as PayPal are preventing me from enjoying the 4 month 0% interest they advertised/offered me at checkout.

I would understand if I had I made both purchases using the 4 months 0% PayPal credit period but the first purchase was a specific 12 month instalment plan and there has been no choice but to pay in equal instalments each month (whereas when purchases are made that are eligible for 4 months interest free the minimum payment appears to be just £5).

[Gareff]

I know I'm a little late to the party, but I've been looking through the forums because I've got the exact same problem and it's complete garbage!

I have 20 months left on a 24 month payment plan and took up the 4 month interest free period for another item.

I made an extra payment thinking it would pay off the sooner ending promotion, but NO! It decided to split the payment proportionally over the 2 outstanding amounts. 

I rung up and they said that's just how it is and would have to wait for the promotional period to end on the 4 month item and THEN pay it off in full so that it would not affect the payment plan.

I hope you got things sorted out. I cant see myself ever using PayPal Credit again after this.

[troubleonline · Accepted solution]

Hi - it turned out my issue was partly because I made a first payment to the 4 month interest free part too quickly and before it had made its way onto a monthly statement.  It was showing on the online balance but the payment was allocated to the balance on the previous months statement which was only the 12 months instalment thing.  I ended up just paying both off in full just to save any hassle or interest.

[Gareff]

Thanks for replying 🙂

I did the exact same thing too! Paying in too early and then rolling my eyes.

It's a shame that the system just doesn't seem to work the way you would assume it should.

Think I will be paying everything off early too, to not have to worry about it and if I ever use it again, to only make one purchase at a time.

Merry Christmas 🎄

[Loobylou33]

I'm having the same problem. The payment needs to be paid for the 1st so would I make the payment that day?

[Kent318]

Same here, completely misleading a borderline scam I'd say.

[PayPal_Olivia]

Hi everyone,

I'm sorry to hear that there's confusion with how payments, installments, and promotional balances work. Please take a look at this FAQ for UK PayPal Credit, or this FAQ for US PayPal Credit. For any questions that are not answered sufficiently by those pages, please contact PayPal Credit customer service directly at the contact information at the bottom of the relevant FAQ.

I hope this helps!

Olivia

[troubleonline]

Not wishing to sound rude but it was not clear in the FAQ's hence i posted here (and hence others have posted since). Thank goodness I called PP as it took almost 4 months for any PP person to bother respond to the post.

I've now accepted my own reply as the solution to hopefully stop the responses.

[temp20200402]

I have had the EXACT same experience and on top of that scummy lies they are charging me an extra 2% in charges PER MONTH EVERY MONTH and not even put it before during of after that they would be doing so. 

I also went for the 0% for 4 months purchases and found out they were over charging me on interest and charges from DAY ONE, the extra charges are not shown during checkout, before when offers are read, or even AFTER in paypal monthly statements, it's not even listed. 

They just stealth charge you an extra 2% not per year, PER MONTH and not just on one purchase or current total on account, but PER PURCHASE you make with paypal credit.......

What they are doing can not be legal at all and I am going to take this as far as I can in terms of consumer rights and regulatory bodies. Court of I have to, it's completely illegal, wrong and against consumer rights. 

The Customer Service was AWFUL to say the least and the secure message system was utter useless to get this resolved. I have put in a complaint and waiting for a manager to get back to me but if this is not FULLY addressed I am taking it further. 

[Chansug]

Hi, Did you escalate this further? What was the outcome?I agree with another poster this is a borderline scam.