Consumer complaint received 2020-06-05 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unexpected or other fees — 
Company: SYNCHRONY FINANCIAL
State: PA

Complaint narrative:
This is in regards to my PayPal Credit account, which is a part of the PayPal " online wallet '' environment/suite of services offered by PayPal. I have been a PayPal and PayPal Credit customer for more than 10 years, and my accounts have always been current. 

Early in XX/XX/2020 ( I can not recall exact date ), I accessed my PayPal Credit account using the PayPal Credit website. My goal that day was to adjust the amount of the automatic payments I send every month. I wanted to increase the amount, and I did. 

Unbeknownst to me, when a customer adjusts the automatic payment amount in PayPal Credit, the system skips one of the automatic payments. In other words, the revised automatic payment does not go into effect until the following pay cycle, not the current one. Because I was used to my automatic payments, I did not make a manual payment at that time. I " set it and forget it, '' when it comes to my credit card payments. The deadline for the XXXX payment, and the date on which the automatic payments are processed, was XX/XX/XXXX. 

On XX/XX/2020, I received a standard monthly statement from PayPal Credit. I typically file these away right away because I am used to my automatic payments. However, the statement caught my attention because now, instead of the {$120.00} I was used to being charged per month, it was asking for {$240.00}. I looked more deeply and saw a late fee of {$28.00} had been assessed, my previous minimum payment was due, and the next minimum payment was due, and in bold red letters the statement said " PAST DUE. '' This was the first I had heard of my account being past due. On XX/XX/XXXX, I received no contact from PayPal that I had missed the payment, nor had I received any message saying my automatic payments had been suspended for that month. 

I called PayPal on XX/XX/2020 to discuss this issue. The customer service representative I spoke with, spoke to me in a very bored, uninterested, impatient tone, at one point sighing very loudly into the phone. I explained my situation and she told me PayPal skips automatic payments when customers adjust them. I said this was news to me, as was news that my account was past due. She didn't offer any explanation why I had not been contacted urgently about the missed payment. She offered to refund the late fee, which was the best result of this situation at the time. 

However, as a consumer, I do not feel like PayPal is treating me with respect, and if anything, I see predatory practices in place here. So I pushed further and followed up using PayPal 's virtual chat feature on the PayPal website. This chat was a major disappointment in terms of customer service. Both of the representatives I spoke with repeatedly stated that their company does not assess late fees ; yet in my PayPal statement ( see attached ), there is clearly a {$28.00} late fee. Moreover, the customer service representative I had spoke with on the phone earlier said she would refund the fee, which acknowledges that this is indeed a late fee. 

Assessing additional fees without urgent notice is predatory. It is lying, it is deliberate concealment, it is gross negligence. And the way my situation was handled by the three different customer service representatives showed no care for my account. I am pasting a copy of the chat transcript below for reference. I want PayPal to change their communication structure - missed payments must be communicated quickly and immediately through multiple channels, and not simply hidden in the general statement. PayPal 's automatic payment system should be updated so that this " skipping '' a month is no longer an issue. Lastly, PayPal should recognize long-term, consistent customers ' loyalty and treat any customer service issues from these customers with utmost care and attention. I received little to no care and attention during my interaction with PayPal employees, and I feel I am owed at least a sincere apology and really should receive a refund for a full month 's worth of credit payments. 


XX/XX/2020 PayPal Virtual Agent XXXX XXXX Hi! I'm your PayPal Assistant. I can help with common questions like " what's the status of my dispute '' or " I want a refund ''. 
If I can't help, I'll transfer your message to an agent. 

XXXX XXXX XXXX XXXX Customer service representative PayPal Virtual Agent XXXX XXXX I can transfer this conversation to an agent. The estimated response time is a few hours. 
Our customer service staffing is limited due to the coronavirus ( covid-19 ) crisis. We've put together some useful information in the Help  Center to quickly resolve your issue. I'll stay here while you take a look. 
After I transfer the conversation, you can close the window and come back to it when its convenient for you. When we respond, well send you a notification with a link to the Message Center where you can reply. 
Would you like to transfer this conversation to an agent? 

XXXX XXXX XXXX XXXX Yes PayPal Virtual Agent XXXX XXXX Please send us a detailed message below and an agent will respond as soon as possible. If you have a related transaction ID, date, and amount, please include it here. 

XXXX XXXX XXXX XXXX I am about to file a complaint with the Consumer Financial Protection Bureau against PayPal and just wondered if anyone wanted to attempt to resolve my anger before I do so? 
My complaint to the federal CFPB has to do with PayPal 's policy of hiding late fees from you and assessing them without notice. 
In addition, this issue of " skipping '' a month of payment when a customer changes the auto-pay amount is ludicrous. 
A responsible, ethical financial company should give customers all the resources, tools, and information needed to keep their account current. 
Especially now during a PANDEMIC and a NATIONAL CRISIS, PayPal assessed a late fee to me without notice You should be WAIVING ALL  CREDIT CARD PAYMENTS during COVID That is the ONLY CORRECT ANSWER So, once someone speaks with me about this, I'll decide whether or not to move forward with my CFPB complaint. I have successfully filed CFPB complaints against other predatory credit companies in the past, one of which was drive out of business. 
PayPal derives its power/money from us, the customer. You answer to us. 
You are now connected to XXXX XXXX XXXX XXXX XXXX XXXX Hi! My name is XXXX XXXX from PayPal Messaging. I'm happy to look into this issue for you. Please give me one minute to check the chats above. 

XXXX XXXX XXXX XXXX Hi XXXX XXXX XXXX XXXX  I'm so sorry to hear that XXXX. If i understand you correctly PayPal is charging you a late fee? am i correct? Please tell me more about it. 

XXXX XXXX XXXX XXXX I've had autopay for over a year. Early in XXXX, I went to edit the amount so I could send more ( get that? I wanted to send you guys MORE MONEY! ). Apparently when I did this, it canceled my auto-pay for the month of XXXX. I just received my statement for XXXX, and I was surprised to see double the minimum due with a late fee assessed. My payments to PayPal are a " set it and forget it '' type of deal. That way I'm confident my account is always current. So receiving a statement for {$240.00} due was a bit of a shock, as it was the first I'd heard that my account was past due. I've already been on the phone with someone who removed the late fee, but I want to ensure this never happens again. A company can't just look the other way when a customer misses a due date, then say " You owe us a late fee, too. '' That's not right. 
I want assurance that PayPal will adjust its machine so that communication is instantly sent the day after a due date, and payment is missing I also want PayPal to adjust its machine so that changing the auto-pay amount doesn't mess up the auto-pay cycle Customers in good faith changing their auto-pay amount shouldn't have to worry about whether their auto-pay will work That's PayPal 's technology, not our problem Assessing late fees without notice is a predatory practice, yes. 
This can absolutely be treated seriously by the CFPB I'll close the chat now if I receive a credit of {$120.00} in my account right now. 
I'll close my CFPB form page if I get money from PayPal That will make this right. 
XXXX XXXX XXXX XXXX XXXX we don't charge our customer 's late fees. I suggest that you contact your service provider because they are the ones collecting money from your PayPal account. 
Feel free to reply whenever you're ready. When you reply, one of our available agents or myself will continue to help you. 

XXXX XXXX XXXX XXXX Uhhhhhhhh yes you do! 
LOL let me send you a copy of your own statement You are now connected to XXXX XXXX Your file has been uploaded. 

Statement.pdf / 0.23 XXXX XXXX XXXX XXXX {$28.00} late fee assessed. Yep. 
No notice Just the normal statement XXXX XXXX XXXX XXXX Hi XXXX! my name is XXXX from PayPal Chat assistance and I'll be helping to resolve your account needs today. I appreciate your patience while waiting for my response. 

XXXX XXXX XXXX XXXX I'm 2 seconds from filing the complaint with Consumer FInancial Protection Bureau. 
One sec, need to copy the chat transcript for my submission to the CFPB XXXX XXXX XXXX XXXX I understand you need help with the fees. Don't worry let me help you with that. As what the previous consultant mentioned we don't charge you for the late fees. regarding the late fees charges please call your service provider because they are the one who is collecting money from your PayPal account. 

Feel free to reply whenever you're ready and we'll reply as soon as we can. 

XXXX XXXX XXXX XXXX Then tell me what the {$28.00} fee is in the PayPal Credit statement I just sent? 
You know what - forget it. I'm filing a complaint with CFPB. 
That was the nail in the coffin.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation