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    Will My Credit Rating Be Affected?

    Hi.
    I recently changed bank accounts and all my direct debits were transferred to my new account. This included my PayPal one.
    I updated my account and card details on PayPal, but PayPal tried to take payments from my old account.
    As the direct debit was now on the new account, and not the old one, my bank declined 8 payments.
    The payments have now been taken from the new account, but I was wondering whether a 'black mark' will be put on my credit files?
    I hope this makes sense and thank you in advance for your replies.

    12 Comments

    No, this wouldn't have an affect on your credit rating.

    What is the link between the direct debits and PayPal?

    If you opened new account - affected, if you just moved your payments to another account - no. Usually each company tries to take money from account twice if first attempt failed then they will try in few days... so I hope your file wasn't affected

    Original Poster

    AndyRoyd

    What is the link between the direct debits and PayPal?



    ​PayPal needs a direct debit instruction on your account to make payments or something.
    The other thing is that the card that PayPal were trying to use expired. I made the purchases prior to it expiring, but they tried to take payments from it after it had lapsed.
    Edited by: "chimp14uk" 8th May

    Original Poster

    Mogolent

    If you opened new account - affected, if you just moved your payments to … If you opened new account - affected, if you just moved your payments to another account - no. Usually each company tries to take money from account twice if first attempt failed then they will try in few days... so I hope your file wasn't affected



    ​I moved the direct debit instruction to the new account, but PayPal tried to take payments from the old account.

    chimp14uk

    PayPal needs a direct debit instruction on your account to make payments … PayPal needs a direct debit instruction on your account to make payments or something.The other thing is that the card that PayPal were trying to use expired. I made the purchases prior to it expiring, but they tried to take payments from it after it had lapsed.


    Did the bank decline 8 payment requests from Paypal, or did PayPal decline to pay 8 requests for money from various suppliers, or other permutation? Only asking for clarification as it sounds more like a CPA arrangement than direct debit.

    The only way it will show on your credit file is if you owe paypal anything , don't pay it and it ends up being passed over for recovery

    Original Poster

    AndyRoyd

    Did the bank decline 8 payment requests from Paypal, or did PayPal … Did the bank decline 8 payment requests from Paypal, or did PayPal decline to pay 8 requests for money from various suppliers, or other permutation? Only asking for clarification as it sounds more like a CPA arrangement than direct debit.



    ​My bank declined 8 payments to PayPal.
    Purchases were made prior to the card on the old account expiring, but requests for payments were made after it expired.
    In the meantime, I changed bank account and the direct debit instruction was transferred to the new account, hence PayPal bouncing payments.
    However, after the new account was made the 'primary', and the old account was taken off PayPal, PayPal has been making payments through the new 'back up' account.
    I've had 8 emails off PayPal today advising me that payments had been declined from my old account, but that they'd been paid from my new account.
    The debit card expired on 30/4 on the d account, but all cancelled payments were requested after 1/5. A new debit card from my new account had been set up.
    I'm sorry if this is confusing, but I'm well confused myself.
    Edited by: "chimp14uk" 8th May

    chimp14uk

    My bank declined 8 payments to PayPal.Purchases were made prior to the … My bank declined 8 payments to PayPal.Purchases were made prior to the card on the old account expiring, but requests for payments were made after it expired.In the meantime, I changed bank account and the direct debit instruction was transferred to the new account, hence PayPal bouncing payments.However, after the new account was made the 'primary', and the old account was taken off PayPal, PayPal has been making payments through the new 'back up' account.I've had 8 emails off PayPal today advising me that payments had been declined from my old account, but that they'd been paid from my new account.The debit card expired on 30/4 on the d account, but all cancelled payments were requested after 1/5. A new debit card from my new account had been set up.I'm sorry if this is confusing, but I'm well confused myself.


    Wow, that is an unusual combination of events and still leaves undefined permutations. Probably simpler to summarise: only suppliers of credit will be reporting your payment performance to credit reference agencies, and generally only if you have previously given permission for the supplier to do so (usually buried in t&c at sign-ip). So for example, if you have a magazine subscription where you pay your monthly subs in advance = no credit, no performance report to CRA. If you have a contract mobile where the over-usage is charged retrospectively = credit, performance almost definitely reported to CRA.

    If ever in any doubt try clearscore or noodle to let you know if there are negatives on your account

    Original Poster

    Thank you all for your advice

    It won't affect your rating but willl affect your ability to get credit due to your new bank account and only having had the account open for a short period
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