Anybody else get an email about Paypal changing terms

[AverageJoesCredit]

Got email today. Oh boy, gotta close all my Synchrony cards now

[Gonzozap]

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@Anonymous wrote:
Not sure — there are a LOT of updated terms in this release and a lot of it may be standard as you said — I think it best we call PayPal credit every so often to see if the reps have any actual updates that are more definitive. I think most of us enjoy the hidden line and Synch should really keep it that way (popular opinion!). I don’t see them suddenly reporting this after years of not doing so, the main issue will be AAofA If it reports as new — as well as UTIL for many ! Lol

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I do wonder though if reporting or not reporting is a function of the business model of the credit grantor.  AND, the creditor pays a cost to the bureaus to report accounts. The cost may be something Synchrony doesn't mind paying AND Synchrony may feel that reporting better fits their business model.  Even though Synchrony lost Walmart, after getting Paypal, they are still bigger than Comenity and they may get a better deal on fees from the bureaus.  I remember reading last year that Synchrony's net interest income increased almost 10% (half a billion dollars) after buying Paypal.

It might just take a while before all accounts are entered and reported to the bureaus. 

[Gonzozap]

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@AverageJoesCredit wrote:
Got email today. Oh boy, gotta close all my Synchrony cards now

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Why ?

[M_Smart007]

@Gonzozap

"We can't determine anything from the word "may."

oh but I can, its somewhere between April and June

[Anonymous]

Hi there,

I've had a PayPal credit line for years, it's the only place I carry a balance because they don't report to the bureaus. Today I received the updated terms, which states "We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be shown in your credit report. "

Does this mean they will regularly be reporting each month, or just with delinquincies? I am worried because it's the type of credit where it automatically increases your limit when you buy something, so if you carry a balance you're basically always "maxed out."

Thanks for your help

[Anonymous]

I saw that email, and I was worried at first since not reporting to the CRAs is the major reasons why I use PayPal Credit regularly (responsibly, of course). If you look at the actual terms listed out by Synchrony, it says this:

"We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be shown in your credit report. Tell us if you think we reported wrong information about you to a credit bureau. Write to us at P.O. Box 965005, Orlando, FL 32896-5005. Tell us what information is wrong and why you think it is wrong. If you have a copy of the credit report that includes the wrong information, send us a copy."

From that, my assumption is that things won't really change regarding reporting - they will report your activity if you misbehave. In addition to that, if they were going to make such a big change the how PPC operates, I think they would try to make that fairly clear. I sure hope they don't start reporting to the CRAs, and of course it's not 100% confirmed now, but I am leaning toward them continuing to not report as long as you behave. 

[Anonymous]

So I researched a bit, and it looks like the statement is required terminology if a creditor plans on reporting delinquicies. According to FDIC, the statement is specifically intended for the reporting of negatove info "NOTICE OF NEGATIVE INFORMATION. Federal Law requires us to provide the following notice to customers
before any "negative information" may be furnished to a nationwide consumer reporting agency. "Negative Information"
includes information concerning delinquencies, overdrafts or any form of default. This notice does not mean that we will
be reporting such information about you, only that we may report such information about customers that have not done
what they are required to do under our agreement.
After providing this notice, additional negative information may be submitted without providing another notice.
We may report information about your account to credit bureaus. Late payments, missed payments or other
defaults on your account may be reflected in your credit report"

I read an interview with an executive that PPC did NOT used to report delinquincies, so this could be an indication of negatives being reported. It doesn't rule out other reporting, but didn't Diner's Club make a very explicit statement about that? I dunno.

[Gonzozap]

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@M_Smart007 wrote:

@Gonzozap

"We can't determine anything from the word "may."

oh but I can, its somewhere between April and June

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Don't believe "may" refers to when.  It refers to "if."

[Anonymous]

Well I called and got an answer--

They will be generally reporting, not just delinquencies. I was told it will start no earlier than September.

The reporting will start from when Synch officially takes over in June, no back reporting.

It will only show positive/negative payments, no balance info.

If you pay off totally before June, no reporting.

[Anonymous]

Jnbmom ... get those emails periodically. Went to Pay Pal and found no changes. Further, explored the matter and they were scammers trying to get my info! Assume that is what they are doing. I delete the emails immediately ... got one three days ago and I do not open them. Anyway ... that's my story on this.