Covid-19 -I need assistance with repaying my PayPal Credit account, what should I do?

If your finances are impacted by Covid-19 or you had a payment holiday on your PayPal Credit account which is coming to an end but you’re still having financial difficulties as a result of Covid-19, we may be able to provide you additional assistance in managing your PayPal Credit repayments. To better understand how we can help you, we’ll first need to assess your situation and your individual requirements. To do this, please follow the instructions below:

  1. Log in to your PayPal account.
  2. Go to www.paypal.com/uk/smarthelp/contact-us.
  3. Select ‘PayPal Credit’, then ‘Covid-19 payment holiday deferral’.
  4. Scroll down to the bottom of the page and click Email us.
Our employees are working as fast as possible to process your application, but due to the current challenging circumstances please be patient if it takes us a little longer to respond. Following this process is likely to be the fastest way to access the right assistance for you. If you need to get in touch with our team, you can message us. If you feel you need to speak to a team member, call 0800 368 7155 but please be aware that wait times may be longer than normal in the current circumstances.

Carefully read the information below to understand if a payment deferral is right for you.

Is taking a payment holiday right for me?
  • We'll need to assess and agree with you whether a further payment holiday is in your best interests.
  • Partial monthly payments may be the right solution as this will reduce the balance and the overall amount of interest you'll need to pay.
  • If a payment plan is chosen, your payments will be in line with the new arrangement.
  • Alternatively, if a payment holiday is considered right for you, then you won't have to pay during the agreed period. Please note that interest will be accrued during this time and will be charged when your repayments begin again.
  • To help you decide if a payment holiday is right for you, you may wish to take free and impartial debt advice, such as can be found here. For more information, see the other links at the bottom of this page.  

Will I be charged a fee and interest during the payment holiday?
  • You won't be charged any fee for taking a payment holiday.
  • Interest will accrue during the payment holiday period and will be charged when your repayments begin again. This will increase the overall balance due so your minimum monthly repayments will be higher after the payment holiday ends.
  • Once the payment holiday ends, your account will resume to function as usual, in line with your PayPal Credit agreement. Your minimum payment will become due and payable on the date displayed on your first statement after your payment holiday ends.

How does a payment holiday impact the use of my PayPal Credit account?
  • You can continue to use your PayPal Credit account as normal, up to your credit limit.
  • Any 0% for 4 months offer that may currently apply will continue during the payment holiday period. If any expire during this period, the offer will end and the balance will move to the standard variable rate. Interest will accrue and be payable once the payment holiday comes to an end.
  • If you're on a payment holiday, any instalment offers will be extended for the duration of the payment holiday and will resume as normal once it ends. Interest will accrue and be payable once the payment holiday comes to an end.

Will my credit score be negatively impacted by my payment holiday?
  • Although taking a payment holiday won't have a negative impact on your credit score, it's important to know that this may be taken into account by lenders when they’re making future lending decisions.
  • If you're on a payment holiday and don’t restart payments when they’re due after it ends, this could affect your credit score.

What happens after I make a request for a payment holiday?
  • If we're unable to respond to you before your next payment is due, and you subsequently miss that payment, we'll ensure that no charges are applied to your account and no negative impact reported on your credit file.
  • If agreed, PayPal will start your payment holiday option from the date your next payment is due, unless your payment is due within three working days, in which case the payment holiday will start the following month.
  • If you're on a payment holiday, PayPal will endeavour to stop any Direct Debits being taken from your bank account once the payment holiday has been confirmed. If a payment is accidentally taken, then PayPal will refund your account.

What should I do if I don’t think a payment deferral is right for me but I’m still impacted by Covid-19?
  • If you decide a payment deferral isn’t right for you but you still need further assistance, please contact us and we’ll help find what may be the best solution under your current circumstances.
  • You may find it helpful to read the FCA’s information page for advice on managing your money during the coronavirus. 
  • If you need financial assistance on a short-term basis only, you may find it useful to work out a budget to review your essential expenses and pay your priority debts before any discretionary expenses or non-priority debts. You can visit the Money Advice Service for help with this. You can also seek further impartial advice and assistance on debt management by visiting the Money Advice Service’s Navigator Tool here, or the Money Advice Services debt advice locator tool here, which you may find helpful in assessing what’s right for you at this time. 

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