12 months interest free instalments v 4 months 0% PayPal credit Payment allocation

Description

I have 5 instalments left to pay for an item purchased from Dyson on a specific 12 months interest free instalments PayPal plan (at £33.25 per month til end Feb 2020).

Last month I bought something else online and ‘paid’ using PayPal credit because it was for £200 I was eligible for 0% for 4 months (til December). My intention is to clear that ‘balance’ before end of interest free period by paying money to that balance each month. I expected that the 12 monthly instalments would continue as normal and any additional manual payments would be assigned to the purchase but not convinced that this will happen as my monthly instalment has increased from 33.25 to 38.25 but none of the additional £5 went to the £200 purchase. It went to the Dyson purchase.

If PP assign all additional payments to the Dyson balance then I will still be left with all or most of the £200 PayPal Credit balance come the end of the 4 month interest free period. I’ve just made a £50 payment but as was made same day that statement generated I cannot see until end of month where that payment is allocated but I am guessing that since they allocated the additional £5 to the other balance they will do the same with the £50.
That in my mind is misleading / unfair as PayPal are preventing me from enjoying the 4 month 0% interest they advertised/offered me at checkout.
I would understand if I had I made both purchases using the 4 months 0% PayPal credit period but the first purchase was a specific 12 month instalment plan and there has been no choice but to pay in equal instalments each month (whereas when purchases are made that are eligible for 4 months interest free the minimum payment appears to be just £5).
Solved! Go to Solution.