PayPal Credit 3rd Party Account Review Out of the Blue??

[Anonymous]

So this situ is involves a family member, but it has me worried about my own Paypal Credit Account.

So the deets: My mom had a paypal credit account that she's had for years. Had it when it was BML, from like 2012ish.  She filed Chp 13, but converted to 7, which was discharged in 2016. The Paypal credit was not included in the BK as there was no balance, and she's been using it over the last year with no issues, perfect payments (along with perfect payments on everythinge else as well). She received a bill Jan 20th, and when we went to pay the bill on 2/2, the account was gone off her Paypal Account. We called in and CS said they had been advised by a 3rd party company of an open BK, and that because of this they had to close the account.

I know that Synchrony bough the PPC side of the business last year, could they be doing account reviews because of that? I'm fully aware that a creditor has the right to close an account for any reason, however I'm concerned about their reasoning for the closure and the remaining balance on the account. One rep advised that since it was closed for an open BK, she wouldn't be responsible for the account, but I know that's covfefe because the charges were incurred after the discharge, not before. They won't let us make a payment and have yet to send any letters that detail the account closure.  We have no issue paying the bill; she made them, she was paying them.

I guess I'm trying to figure out where do we go from here regarding this account. Has anyone else had this happen? The only new credit she opened in the last 6 months was a walmart card ($500 SL) that she's not even used, so i'm confused as to why any 3rd party would be reporting back her BK status NOW. Also, I'm worried about my own Paypal credit, becuase my situation is almost identical to hers, however my account is still open and I have a lot more rebuilding activity than she does.

Thanks in advance for any opinions!

[Anonymous]

Not the same situation but maybe another data point, Synchrony Closed my zero balance amazon account when I filed chap 7. They said it was closed based on a review of my account but I was instructed by my attorney to include them on the petition even though the balance was zero. Either way, end result was the account was closed. Don’t recall it being a 3rd party thing. Might be that they randomly selected her account to the new standard under Synchrony. Might be that they will review your account and close it as well or maybe they never will.

[Anonymous]

If I were her I'd call their bankruptcy department and clarify her responsibility for post-filing charges, and also ask if they can reverse their decision to close the account (though I think that part is unlikely).

If they absolutely refuse to take payments, I would ask for that in writing. The last thing she'll want is a late on her CBR after Synchrony realizes they made a mistake while no payment was made.

[Anonymous]

Thanks Hotter and leonel9. I think I'm going to wait a week to see if anything comes in the mail and then will follow up as you suggest by calling back and getting clarification on the responsibility for the charges. Her rebuild isn't nearly as aggressive as mine has been, but I definitely don't want her to have any lates, especially for something like this.

I've already confirmed they aren't going to reopen the account. When we first talked to them, they put in a request to reopen the account, but she got an email back that said the review as complete and confirmed it will remain closed. Oh well.  It was good for what it was it was, but time to move on.

[DaveInAZ]

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wrote:

So this situ is involves a family member, but it has me worried about my own Paypal Credit Account.

So the deets: My mom had a paypal credit account that she's had for years. Had it when it was BML, from like 2012ish.  She filed Chp 13, but converted to 7, which was discharged in 2016. The Paypal credit was not included in the BK as there was no balance, and she's been using it over the last year with no issues, perfect payments (along with perfect payments on everythinge else as well). She received a bill Jan 20th, and when we went to pay the bill on 2/2, the account was gone off her Paypal Account. We called in and CS said they had been advised by a 3rd party company of an open BK, and that because of this they had to close the account.

 

I know that Synchrony bough the PPC side of the business last year, could they be doing account reviews because of that? I'm fully aware that a creditor has the right to close an account for any reason, however I'm concerned about their reasoning for the closure and the remaining balance on the account. One rep advised that since it was closed for an open BK, she wouldn't be responsible for the account, but I know that's covfefe because the charges were incurred after the discharge, not before. They won't let us make a payment and have yet to send any letters that detail the account closure.  We have no issue paying the bill; she made them, she was paying them.

 -

I guess I'm trying to figure out where do we go from here regarding this account. Has anyone else had this happen? The only new credit she opened in the last 6 months was a walmart card ($500 SL) that she's not even used, so i'm confused as to why any 3rd party would be reporting back her BK status NOW. Also, I'm worried about my own Paypal credit, becuase my situation is almost identical to hers, however my account is still open and I have a lot more rebuilding activity than she does.

Thanks in advance for any opinions!

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 - A couple things here:

1- No, PayPal Credit is still issued & operated by Comenity Bank, Synchrony takes it over later this year.

2- If your mom's BK7 was discharged in 2016 it is not an "open BK" and no "3rd party" should be reporting it as such. .

In my 2010 BK7 I was in your mom's situation, my PP Credit had a $0 balance so it was not included or listed in my BK, after my discharge I logged in and saw it was still open with a credit limit so I used it, never a problem and I still have the account.

You shouldn't be calling PayPal, the rare occasion I contacted PayPal, which I've had since 2005, I've found them pretty uninformed and useless. Call Comenity direct, the phone # for Comenity PayPal Credit is: 1-866-528-3733.

They will certainly want payment on the account, as it's 2 years post BK discharge and not yet seriously delinquent. Your mom should have a good case for them to re-open it. I closed my PayPal Credit account in June as I wanted the Synchrony 2% Cashback MC and at the time you couldn't have both. I got the Cashback MC in July, when I saw in September that the policy had changed and you could now have both PP Credit & Cashback MC I called Comenity and asked them to re-open the account, they re-opened the account in minutes and even gave me a CLI.

- One last thing: Tell you mom to use that Walmart card, even if for a cup of coffee from the deli. Creditors don't like opening new accounts that aren't used, and they also don't like prolonged inactivity, 6 months or more. My Walmart card was one of my earlier post BK credit cards, it now has a $10k credit limit.

Good luck and let us know how it comes out.

[Anonymous]

Same happened to us a few weeks ago..we filed chapter 13 in 2013 and just paid it off. At the time we had a paypal credit account but no balance on it. After the filing we used paypal credit alot and paid it off a few times but last month had a high balance. Three weeks ago we got the discharge letter and then suddenly my paypal credit account disappeared. No place to pay the bill. I don't want to call them as I would hope not to have to pay the big bill, but was willing to do so. I am waiting for something in the mail I guess. Would be interesting that somehow they got a copy of the discharge and it wiped everything out...not sure.