Not upheld: incorrect payment method / alleged mis-selling of payment terms complaint against PayPal UK Ltd

Decision detail

Summary

Mr D complained that PayPal charged his bank account for a £5,198.00 purchase despite selecting PayPal Credit as the funding source, causing an unarranged overdraft. PayPal explained that PayPal Credit was unavailable because the purchase exceeded Mr D's £4,550.00 credit limit. The ombudsman reviewed PayPal's checkout screenshots and found that the bank account funding method was clearly displayed before purchase confirmation. The ombudsman concluded that Mr D authorized the transaction by clicking the payment button and that PayPal did not act unfairly or misleadingly, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that although Mr D selected PayPal Credit on the merchant's website, the option was not available at PayPal checkout due to the purchase exceeding his credit limit. The screenshots demonstrate that the selected funding method (bank account) was clearly displayed before purchase confirmation. By clicking the payment button, Mr D authorized the transaction and the selected funding source. The ombudsman was not persuaded that PayPal's presentation of information was unclear, misleading, or in breach of Consumer Duty obligations, nor that the harm was foreseeable or caused by PayPal error.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website