Anorak

Anorak | Being dead breaches Paypal’s contract terms

Being dead breaches Paypal’s contract terms

by | 14th, July 2018

It would appear that all of us with a Paypal account should live forever. Presumably Elon Musk’s old firm has some idea as to how this should or even could be achieved. For their contract seems to indicate that the popping of clogs is a breach of their terms.

A widower told last night of his shock after receiving a letter from online banking company, PayPal, threatening his dead wife with debt collection and legal action.

Howard Durdle was contacted by the ‘insensitive’ company, which claimed the death of Mr Durdle’s wife, Lindsay, constituted a ‘breach’ of their rules.

Well, yes and no actually:

The death of the 37-year-old British woman, Lindsay Durdle, who passed away from breast cancer, apparently violated PayPal’s account holder policies. After being notified by her surviving husband, Howard, of her tragic end on May 31, the American company demanded, in a quite peculiar way, repayment of about £3,200 that she owed.

“You are in breach of condition 15.4(c) of your agreement with PayPal Credit as we have received notice that you are deceased,” PayPal scolded, in a letter addressed to Mrs Durdle, after her husband provided copies of her death certificate, her will and his ID.

It’s badly worded, that’s true.

But here’s the full situation. She had borrowed money from Paypal Credit – OK, that’s what it’s for. There are certain repayment terms on such loans – that’s normal enough, when are you going to repay? Death does make following such terms a little difficult. But the debt’s still owed of course. It’s part and parcel of her estate in fact. What she owns is bundled up, what she owes – if secured of course – is also bundled up, one is used to pay the other and then what’s left over is distributed according to her will. This will be true of any other debts she has as well. The whole process is called probate.

So, yes, badly worded, possibly even a source of amusement for us out here, but nothing terribly odd about it at all. Being dead means the last chance they’ve got of getting the loan repaid is her estate. Thus the letter demanding immediate – for which read, the executor of the will out of that estate – repayment.

After all, a little delay here’s not going to harm her credit rating all that much, is it?



Posted: 14th, July 2018 | In: Key Posts, Money, News, Technology Comment | TrackBack | Permalink