Consumer complaint received 2015-05-26
Company: Paypal Holdings, Inc
State: OH
Product: Credit card
Issue: Other

Complaint:
I started using this service on XXXX as i have made my first purchase. i do shop on online a lot and was what i thought following fair credit act logic. 
Paypal Credit : - does not credit returns to original transaction! 
in the old version site it is shown return has been received against the original transaction # XXXX however paypal credit applied the funds against completely irrelevant transaction. 
i ended with full interest rate charges still growing against the transaction XXXX that should have been credited. 
- does not have written complete policy stating the funds allocation process. 
- credits returns to wrong transactions - they credited XXXX returns that had " deferred '' type to completely different " deferred '' XXXX transaction - mind you not the oldest one either which does n't make sense as this credit did n't pay off the credited transaction & exposed the older transaction to subject of interests charges sooner where it could be paid off. 
- the funds allocation process makes it impossible to pay the deferred purchases first ( or at least some portion of the purchase ) out of all payments i have made between XXXX statement of XX/XX/XXXX until XX/XX/XXXX only couple of times they applied small portion of payments to few deferred transactions & not in particular order definitely not based on the age of the deferred purchases. Basically 90 % of my payments did not go towards paying off deferred purchases, which is equivalent for creditor not allocating consumers payments to higher interest rate transaction first as it supposed to be done per CFPB! i spent a lot of time on their website making sense of everything & made detailed excel sheet that shows clearly the way they used my payments & returns. 
- paypal credit avoided paying off deferred purchases. I 'm in deep financial trouble because of it! when i dug deeper and got to paper statements i found : -- online statements missing critical information. 
-paper statements are not even close to what you see on the website. 
- " classic '' version of the site does not match the statements neither on version of the site consumer sees logging in & does not match the paper statements. if you use this service demand paper statements otherwise you will know that you have an issue when you see finance charges piling up! the online statements not detailed as they must be. 
- paper statement is the only document will show true standing & status of all transactions. 
- Paypal credit website does not show full information on the account & transactions status. it is impossible to know deferred purchases & actual funds allocation unless you get paper statement which they do not provide when you sign up. you have to ask i guess when you end up like me. 
- the bottom line their system of funds processing does not allow to pay off consumer deferred purchases in 6 months unless you pay off everything as soon as you use the option which defeats the purpose of this service. 
- paypal credit does not allow consumer to pay off the damaging portion of the credit as they do not have a clear system or lack of funds processing standard system based on actual evidence of my account status. 
-paypal credit has lack of the critical piece of information on their listed policy that i reread on the statements & their site. they do not provide instructions on all possible funds allocation scenarios, nowhere. 
- consumer will not even know when to be aware of issues that can be damaging to their account. 
- not providing consumer with clear, true information on the account in the tool they promote which is their current website ( conservative wo n't match the statement and it 's not accurate ). consumer has no ability to see the damaging factors which are only shown on the paper statement where Paypal promotes to go paperless! i have more details if needed.

Company response to consumer: Closed with explanation