Consumer complaint received 2023-11-14
Company: Paypal Holdings, Inc
State: OH
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem

Complaint:
I was trying to pay my auto insurance with Paypal and the Paypal screen came up with the Pay-in-4 short term loan offer was always available, but now it is not. Tech support at Paypal said to try again since I had just made only the monthly payment and not as I wanted to pay the full amount. So, apparently from their website, there is a note saying that I tried to apply for an installment loan, but I did not and now they are penalizing me unjustly to use the Pay-in-4 short-term loan product due to failure to apply for another installment loan offer which I never applied for. At no time, have I been not permitted to use Pay-in-4 and if any reason why a transaction was noted as denied was because they were using the wrong checking account to drawl from. It's their fault.

I am sending them a letter in response to the problem.

Here is their letter.

PayPal Your PayPal Pay in 4 application decision Today Date : XX/XX/2023 PayPal , Inc . 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ' Dear XXXX XXXX : This notice is in response to your recent request for a PayPal Pay in 4 installment loan. Our records show that you requested to open a loan on XX/XX/2023. 
Your application was processed by a proprietary scoring system that assigns a numerical value to the various items of information we consider in evaluating an application. These numerical values are based upon the results of analyses of credit histories of large numbers of customers. Unfortunately, your application did not score a sufficient number of points for approval for the following reasons : Proportion of payments on all of your Pay in 4 installment loans that were declined.

Proportion of payments on all of your Pay in 4 installments loans that were declined or no prior Pay in 4 payment history.

Amount of Pay in 4 installment loan payments declined due to insufficient funds.

Thank you for your interest in PayPal Pay in 4.

Sincerely, PayPal FEDERAL EQUAL CREDIT OPPORTUNITY ACT NOTICE The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age ( provided the applicant has the capacity to enter into a binding contract ) ; because all or part of the applicants income derives from any public assistance program ; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The Federal agency that administers compliance with this law concerning this creditor is the Bureau of Consumer Financial Protection, XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXXXXXX. 
The Ohio laws against discrimination require that all creditors make credit equally available to all credit worthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil rights Commission administers compliance with this law.

Here is there other letter, which I never applied for : PayPal Your PayPal Pay Monthly application decision Today Date : XX/XX/2023 XXXX XXXX PayPal XXXX XXXX XXXX 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX : This notice is in response to your recent request for a PayPal Pay Monthly installment loan. Our records show that you requested to open an installment loan on XX/XX/2023. 

Your application was processed by a proprietary scoring system that assigns a numerical value to the various items of information we consider in evaluating an application. These numerical values are based upon the results of analyses of credit histories of large numbers of customers. Unfortunately, your application did not score a sufficient number of points for approval for the following reasons : Transaction amount that you requested is higher than we can approve at this time. 
Proportion of payments on all of your Pay in 4 installment loans that were declined.

Proportion of payments on all of your Pay in 4 installments loans that were declined or no prior Pay in 4 payment history. 

Thank you for your interest in PayPal Pay Monthly. 

Sincerely, XXXX, XXXX XXXX XXXX, Utah FEDERAL EQUAL CREDIT OPPORTUNITY ACT NOTICE The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age ( provided the applicant has the capacity to enter into a binding contract ) ; because all or part of the applicant 's income derives from any public assistance program ; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The Federal agency that administers compliance with this law concerning this creditor is the FDIC - Consumer Response Center, XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, MO XXXX. 

The Ohio laws against discrimination require that all creditors make credit equally available to all credit worthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. 
The Ohio Civil rights Commission administers compliance with this law.

Company response to consumer: Closed with explanation