Consumer complaint received 2023-10-05
Company: Paypal Holdings, Inc
State: NJ
Product: Payday loan, title loan, personal loan, or advance loan
Sub-product: Personal line of credit
Issue: Getting a line of credit

Complaint:
Call Recordings Attached, history with PayPal attached, and offer that I was denied for that I meant the requirements for. 

On XXXX XX/XX/XXXX I applied for PayPal Working XXXX XXXX  for small businesses. The requirement are as follows : To be eligible to apply for PayPal Working XXXX, you must ( I met this advertisement ) : -Have a PayPal Business or XXXX  account for XXXX  days or more -Process at least {$20000.00} in annual PayPal sales if you have a XXXX  account or at least {$15000.00} in annual PayPal sales if you have a Business PayPal account XXXX 
- Pay off any existing PayPal Working XXXX XXXX I applied and I was denied even though I mean and superseded the requirements. 
- I have had a PayPal business account for three years - I have processed more than {$20000.00} in annual PayPal sales and more than {$15000.00} - I have a Business PayPal account - I do not currently have a loan with Paypal at all. 

I spoke to the representatives from PayPal customer care over the phone on XX/XX/XXXX and XX/XX/XXXX. The representatives said even though I meet all requirements they were still not able to extend the loan to me. 

I called to find out why asked why ( we record our calls for quality as well ) : 1. The first representative ( XXXX said on XX/XX/XXXX ) said : " You met the minimal to apply, but its declining you because the way the sales are coming in and because you don't have a lot of unique transactions and then goes on to say because my income is different every month even though is met the annual requirements. '' - He then said you are welcomed me to apply to another business loan PayPal Business Loan : This loan had harsher requirements that I would not meet or be able to get approve for or would be very hard on my business. 
PayPal Business Loan Requirements compared to the loan above : - Lesser loan amount to be approved for. 
- Weekly repayment terms.

- Higher Interest Rates -Harder to get approved for because it had a credit check -Higher annual sales revenue of {$33000.00} required -Longer wait time to be funded -Longer time required as an account Holder. 

PayPal is directly violating the following as defined by CFPB : -12 CFR Part 1002 - Equal Credit Opportunity Act ( Regulation B ) ( please see ) XXXX Special purpose credit programs. 
- 12 CFR Part 1002 ( Regulation B ) 1002.6 Rules concerning evaluation of applications.

( please see ) ( b ) Specific rules concerning use of information.

* Cited from PayPal Working XXXX  FAQ : Apply with Bank or other Account Info : ( screenshot attached ) I see an option to share my business bank account information when applying for PayPal Working XXXX. What is this? 
Your PayPal Working XXXX loan decision and offer are primarily based on your businesss PayPal account activity, including the sales you process through your PayPal account. However, we understand that you may process significant sales outside PayPal. If you choose to share your business bank account information when you apply for PayPal Working XXXX, and if your application is approved, you XXXX receive a higher loan offer based on the additional sales you process in your bank account. 
* My experience on both calls : Went I applied for this loan the option to provide my Quickbooks account or additional revenue details was never made available to me ( during the loan process or after when I called ) and I let them know this is where the the majority of my income comes from, yet it is available to certain applicants, but not to me. 

I called again on XX/XX/XXXX and tried to get answers again. 
2nd Representative : The system wants to predict sales and he said I also ask to go to the more traditional loans with higher interest rates and a credit check.

Supervisor Call ( XXXX XXXX on this day XX/XX/XXXX : Said it was a temporary decline it could change and asked if I saw anything about adding a bank. ( I did not see it ). She too offer the other loan with the higher interest rate and credit requirements. 

Please listen to the calls and review cited information and thank you.

Company response to consumer: Closed with explanation