Consumer complaint received 2017-08-05
Company: Bread Financial Holdings, Inc.
State: CT
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Confusing or missing disclosures

Complaint:
PayPal credit offers a 'no interest deferred payment option ' for purchases over {$150.00}. On their payment website, following information is displayed which leads the consumer to believe at first reading, that payments will be applied first to promotional balances. After calling PayPal to try and get more information, I was informed that I had 'misread ' the information, and essentially, until the month the promo balance is due to expire, all payments are applied to the standard balances first. When I asked if payments could be re-allocated I was informed 'no we ca n't ' - which I realize is inaccurate as I have worked easily with other cards, to have this done and have been able to change my preferred allocation method - XXXX  specifically. I was told a specific payment could be allocated, but I need to call them to do it and make the payment over the phone. I asked where on their website this service option was noted and the service rep was not able to locate this information on their consumer website. I was then transferred to a supervisor 'XXXX ' who stated that it is a 'courtesy ' they offer, but confirmed it is not on the website and was unable to tell me where that information was published. I find this practice deceptive in that the consumer does not have all of the available information to effectively manage their credit account. It is a very easy way for PayPal to offer no interest and then get it anyway when the promo period expires. I always paid well above the minimum and had calculated how much would be applied to each promo balance based on the below information. Warning to all - do n't use you 're PayPal Credit Card for a standard purchases if you have a promo balance already!!!
Link to PayPal information : https : //www.paypal.com/us/selfhelp/article/how-will-my-paypal-credit-payments-be-applied-faq3376 Text for how payments are allocated copied from above link : When you submit a payment to PayPal Credit it will be applied as follows : Minimum Payments : 1.Easy Payments 2.Promotions expiring on current due date ( oldest balance first ) 3.Promotions expiring on following due date ( oldest balance first ) 4.Balances with a lower than standard APR ( e.g. " 90 Day Grace '' and " Balance Prior To '' ) in order of low to high APR, or in case of multiples with same APR in order of low to high balance 5.Standard balance 6.Remaining promotions in expiring order Excess Payments : 1.Promotions expiring on current due date ( oldest balance first ) 2.Promotions expiring on following due date ( oldest balance first ) 3.Interest/fees 4.Standard balance 5.Remaining promotions in expiring order 6.Balances with a lower than standard APR ( e.g. " 90 Day Grace '' and " Balance Prior To '' ) in order of low to high APR, or in case of multiples with same APR in order of low to high balance 7.Easy Payments 8.Current activity 9.Amounts in dispute If multiple promotional purchases posted on the same day and have the same expiration date, payments are applied to purchases in the order that they appear on the statement ( valid for statements printed on or after XXXX XXXX, 2013 ).
Balances from recently expired promotions are itemized on the statement as separate standard balances for up to 1-2 billing cycles. Payments will follow normal payment hierarchy and treat expired promotions as part of the standard balance even when itemized separately on the statement.

Company response to consumer: Closed with explanation