PayPal Credit

22
Posted 17th Aug 2020
I opted for PayPal credit covid relief. On 4th August I received an email from PayPal Credit that my Covid holiday is soon coming to end. Today when I saw 3rd August statement, they had already charged mr interest at 19.9% interest rate. I was under assumption that covid relief is on top of 4 month holiday they already provide. I had my minimum payment direct debit set up but they didn’t take any money for 3 months. Purchases were all made just before this 3 month holiday. When I tried to contact them over online message center, they saying it is as per terms agreed. Anyone can guide what is happening here. Credit card statements are much easier to understand than this.
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Nope, you get X number of months where you don't have to pay but your interest is still aded. I suggest you read t&c
22 Comments
Nope, you get X number of months where you don't have to pay but your interest is still aded. I suggest you read t&c
Sure you are now paying interest on your interest as well as the extra money you didn’t pay
Edited by: "ashmac" 17th Aug
Works the same as a covid mortgage holiday I guess. They didn't take the minimum monthly payment because you are supposed to be struggling and can't pay at all.

Nothing is free. You should have posted a question on here to ask before you took advantage of the holiday.
Op I've just clicked on the Covid holiday banner and it says it at least 4 different times that interest will continue to accrue if you request a payment holiday,thats pretty easy to read so I don't think you have to leg to stand on.

I don't know your situation Op but reading some comments on here over the months it seemed like a lot of people saw payment holidays as just an easy way to have extra spending money over this period than for what they really are needed, so you won't be the first or the last to ask why they've been charged interest.
unless its a house dont buy it if ya cant afford it three times over
I don't know the details of this, so may be wrong. But isn't the OP saying that they purchased about 3 months ago and the standard offer was 4 months interest free? So shouldn't be charged any interest until sometime soon?
Doesn’t matter if you took a payment holiday from any kind of credit...mortgage etc...even though payments were froze...it does state that interest is still accrued for that period....payment holidays are good for helping out when money is tight but once it’s finished...that’s when it’s hitting people’s payments harder!
The financial institutions saw an opportunity to make even more money with their payment holidays. I believe the 500 interest free overdraft usage was the only free offer
Is this the next PPI?
The_JumpOff17/08/2020 09:15

Is this the next PPI?



most probably, just like the PPI people didnt bother to read/understand what they were signing but got their money back and 8% interest on top. Fantastic savings rate that.
The_JumpOff17/08/2020 09:15

Is this the next PPI?


With any luck any PPI loopholes have been closed and people don't get a penny, it will soon teach people to stop being greedy and start reading things properly.

Good choice of top by the way, wrong colour scheme though
Sadly as has been said everywhere has made it very, very clear that interest is still chargeable. Martin Lewis has even given examples of the costs incurred on mortgages if you take a holiday as well as worked examples as to how it will impact the loan going forward (e.g. higher monthly bills for remainder of term/longer term etc.).

Unfortunately there is nothing you can do here.
Is it possible the 4 month interest free holiday was dependant on you making payments and you're taking the covid relief has nullified that?
Payment holiday was never the same as interest holiday. Unfortunately, far too many didn't bother reading the fine print and will now ask for yet another bailout.
maddogb17/08/2020 09:44

Is it possible the 4 month interest free holiday was dependant on you …Is it possible the 4 month interest free holiday was dependant on you making payments and you're taking the covid relief has nullified that?


None of the holidays have ever been 'interest free holidays' - they've been payment holidays thats it. The only exception I think was the overdraft of £500. So you skip payments (up to 6 times now for some accounts) BUT they still add on interest, just no late charges etc.
markmc99917/08/2020 09:59

None of the holidays have ever been 'interest free holidays' - they've …None of the holidays have ever been 'interest free holidays' - they've been payment holidays thats it. The only exception I think was the overdraft of £500. So you skip payments (up to 6 times now for some accounts) BUT they still add on interest, just no late charges etc.



i think the term "holiday" was being used to describe the initital interest free period offered by paypal credit on a promotion not the specific Covid "holiday" period.
If anybody on BuyNowPayLater and get an extension, the extended / original period won’t be charged interest, if settled (IN FULL) before revised end date.
markmc99917/08/2020 09:59

None of the holidays have ever been 'interest free holidays' - they've …None of the holidays have ever been 'interest free holidays' - they've been payment holidays thats it. The only exception I think was the overdraft of £500. So you skip payments (up to 6 times now for some accounts) BUT they still add on interest, just no late charges etc.


Very much like Buy now, Pay later
markmc99917/08/2020 09:59

None of the holidays have ever been 'interest free holidays' - they've …None of the holidays have ever been 'interest free holidays' - they've been payment holidays thats it. The only exception I think was the overdraft of £500. So you skip payments (up to 6 times now for some accounts) BUT they still add on interest, just no late charges etc.


How exactly the payment holiday works depends on what type of product you have...

  • Buy now, pay later. You can ask for a payment holiday or partial payment holiday of up to three months and you've got until 31 October 2020 to ask. If you get a payment holiday, and you're in a promotional period – say an initial 0% interest deal – this should be extended by the length of the payment holiday. However, if you are paying interest, this will continue to accrue during the payment holiday and will be added to what you owe once you start paying again.
People at work took payment holidays on mortgages and other debts, just so they could spend the money as we have worked all the way through. Try explaining to them over the next 20 years of interest they will be paying back, but they just don’t get it..
Bargainhead17/08/2020 13:04

People at work took payment holidays on mortgages and other debts, just so …People at work took payment holidays on mortgages and other debts, just so they could spend the money as we have worked all the way through. Try explaining to them over the next 20 years of interest they will be paying back, but they just don’t get it..


i think people seem to think it is a free for all, all these holidays. the terminology itself infer something good. maybe they should have called it something more obvious, like delay rather than holiday. some people also like the idea of spend now, pay later, even if they know it will mean the interest continues to accrue.
I know a few people who took a advantage of the payment holiday breaks for COVID & used it as free money to blow and they said it won’t effect your credit score at the time , I carried on paying my £950 mortgage and every other bill and didn’t take any .

All these people now moaning about the extra money will have to pay out and will be maiming when they try and get a new loan and the rates sky high .

My wife works in finance for a large home builder and told me anyone who took a payment holiday are struggling to get a mortgage now
Edited by: "ashmac" 17th Aug
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