Said See Ya To Pay Pal Ripoff!

[STRATDELUXER97]

Pay Pal wants to charge 27% interest on the use of their service...I called yesterday to cancel...The girl on the other end of the phone,asks why do I want to cancel my PP account...My answer...."Cause I'm not paying your insane interest rates?" If I don't have the cash or a money order,I won't buy anything and I won't use Pay Pal...Watch yourselves with Pay Pal and this crazy interest rate hike...I'm done with Pay Pal..

[trevorus]

Where is this on their site? I've not heard of this yet.

[ErikH]

My understanding is that rate applies to the PayPal Credit Card and not to the general usage of PayPal with a PayPal balance and your own credit/debit cards.

[idsnowdog]

I wonder if their card isn't issued by Citibank? Citibank card services has its HQ in Sioux Falls because South Dakota is one of the few states that doesn't have a usury law. Still I would think that Paypals card would fall under the same national consumer protection guidelines recently enacted by congress?

[Aceman]

I had one for a while and it was from GE.

They cancelled it because I hadn't used it!

[ratherdashing]

My understanding is that rate applies to the PayPal Credit Card and not to the general usage of PayPal with a PayPal balance and your own credit/debit cards.

That makes sense. I was wondering how or where PayPal would charge interest. They aren't lending you any money.

[STRATDELUXER97]

Yes the use of the Pay Pal credit card is what I didn't mention.... ;o)

[STRATDELUXER97]

Where is this on their site? I've not heard of this yet.

The use of the Pay Pal credit card...

[idsnowdog]

To me it just seems odd that PayPal would try to jack up its interest rates at a time like this? Recently the credit card industry has been under a lot of scrutiny and consumer protection legislation has been passed. This move by PayPal is completely contrary to all of the legislation recently passed and at 27% interest it would be considered usury in most jurisdictions. I don't understand why PayPal would think their immune?

The only thing that seems plausible to me is that PayPal considers itself to be a funds transfer company, rather than a lending institution so it considers itself immune from usury laws? I don't know if usury laws apply to funds transfers? Just the same I can't imagine if GE capital is the lending institution behind the card, that they would sit back and let PayPal charge whatever they like without getting cut a percentage of the interest? If this is the case then both GE and PayPal are conspiring to make an end run around usury laws.

[STRATDELUXER97]

To me it just seems odd that PayPal would try to jack up its interest rates at a time like this? Recently the credit card industry has been under a lot of scrutiny and consumer protection legislation has been passed. This move by PayPal is completely contrary to all of the legislation recently passed and at 27% interest it would be considered usury in most jurisdictions. I don't understand why PayPal would think their immune?

The only thing that seems plausible to me is that PayPal considers itself to be a funds transfer company, rather than a lending institution so it considers itself immune from usury laws? I don't know if usury laws apply to funds transfers? Just the same I can't imagine if GE capital is the lending institution behind the card, that they would sit back and let PayPal charge whatever they like without getting cut a percentage of the interest? If this is the case then both GE and PayPal are conspiring to make an end run around usury laws.

I always hated all the stupid fees we have to Pay when using their service....I'm done with Pay Pal...

[elscorcho]

i don't cary a balance.....but mine's "only" 12.24%........You sure about that....

[ginormous]

To me it just seems odd that PayPal would try to jack up its interest rates at a time like this? Recently the credit card industry has been under a lot of scrutiny and consumer protection legislation has been passed. This move by PayPal is completely contrary to all of the legislation recently passed and at 27% interest it would be considered usury in most jurisdictions. I don't understand why PayPal would think their immune?

The only thing that seems plausible to me is that PayPal considers itself to be a funds transfer company, rather than a lending institution so it considers itself immune from usury laws? I don't know if usury laws apply to funds transfers? Just the same I can't imagine if GE capital is the lending institution behind the card, that they would sit back and let PayPal charge whatever they like without getting cut a percentage of the interest? If this is the case then both GE and PayPal are conspiring to make an end run around usury laws.

It might be that eBay is licensing their name to whatever bank is really issuing the cards (GE Capital?), which has become a common practice. This may have nothing to do with the eBay online funds transfer system, other than the IP rights for the name "PayPal". Pure conjecture on my part, but it's happened before. Companies that have absolutely nothing to do with banks or lending all of a sudden have a credit card, and they charge some of the largest interest rates around -- that's usually a 3rd-party bank or finance company involved.

[STRATDELUXER97]

i don't cary a balance.....but mine's "only" 12.24%........You sure about that....

Just going by what my wife(The bill payer told me)....Maybe we have too much of a balance and they want to penalize us?

Keep an eye on it and see it doesn't go up at least double!