Not upheld: alleged false advertising of promotional interest-free offer complaint against PayPal UK Ltd

Decision detail

Summary

Mr Y complained that PayPal UK Ltd falsely advertised an interest-free purchase and improperly charged him interest. He applied for a PayPal credit account and made a £479.96 purchase eligible for 0% interest for 4 months. After the promotional period ended, PayPal charged interest at the standard variable rate. The ombudsman reviewed the credit agreement and monthly statements, which clearly stated the 0% offer was limited to 4 months with interest reverting thereafter. Finding that PayPal made the terms clear and acted in accordance with the agreement, the ombudsman did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman reviewed the credit agreement and confirmed it explicitly stated that 0% interest offers were automatically applied for 4 months on transactions of £99 or more, with interest reverting to the standard variable rate thereafter. The monthly statements clearly displayed the expiry date of the promotional offer. PayPal made the terms of the offer clear at the time of transaction, in the credit agreement, and in subsequent statements. Therefore, PayPal charged interest in accordance with the agreed terms and did not falsely advertise the promotional offer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website