Not upheld: buyer protection claim refusal - late claim submission complaint against PayPal UK Ltd

Decision detail

Summary

Mr O purchased an item online on 10 March 2025 that later developed a fault. He raised a buyer protection claim with PayPal on 1 August 2025, but PayPal declined the refund as the claim was raised outside the required 30-day window. The ombudsman found that PayPal's terms clearly require SNAD claims to be raised within 30 days of delivery and that Mr O's claim was substantially late. The ombudsman noted that PayPal buyer protection is not designed as a warranty and does not cover items that develop faults after delivery. The complaint was not upheld, and the ombudsman suggested Mr O pursue the seller or manufacturer regarding the warranty.

The Ombudsman's reasoning

The ombudsman found that PayPal's buyer protection terms are reasonable and clearly require SNAD claims to be raised within 30 days of delivery. Since Mr O raised his claim on 1 August 2025, substantially later than 30 days from the March 2025 delivery, the claim failed at the first point of PayPal's terms. PayPal buyer protection is not designed as a warranty and is not obligated to cover items that develop faults after delivery and use. The ombudsman noted that while Mr O may have a warranty with the seller, this does not bind PayPal, which merely facilitated the payment rather than selling the item.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website