In the latest edition of the MoneySavingExpert.com newsletter, Martin Lewis issued an urgent warning to PayPal users, informing him that he was on the verge of introducing an annual fee of up to £ 12 for users whose accounts are inactive for a year or more.
But, in typical money-saving style, the MSE team found a way to avoid the fees.
All anyone with a PayPal account has to do is log into their account by December 15th.
As of December 16, 2020, PayPal users will be billed the fee if their accounts have been inactive for at least 12 consecutive months.
PayPal defines “inactive” as an account on which the user has not sent, received or withdrawn money, or logged into their account.
The MSE website explains: “If your account has been inactive for more than 12 months, your charges will be the lesser of £ 12 or your entire PayPal balance.
“If you don’t have money in your PayPal account or if your balance is negative, PayPal says you won’t be charged any fees, even if you have a credit or debit card linked to the account.
“You can avoid being billed by logging into your PayPal account (or making a transaction) no later than December 15, 2020, before the charges are introduced on December 16, 2020.”
If you’re not using your PayPal account and don’t want to risk being charged in the future, you can simply close the account.
To do this, simply log into your account, go to “Settings” and select “Close your account” at the bottom of the “Account” tab.
You can also keep the account open, but transfer all the money you have in it to another account, as you will not be charged in the future if your PayPal account has a zero balance.
MSE added, “PayPal says it does not intend to close inactive accounts that do not have a balance.
“It will also alert inactive customers that they may have to pay a fee, sending them notifications 60 days, 30 days, and then seven days before the fee is billed. ”
If you are an irregular PayPal user but still want to keep your account open and maintain a balance, simply set a calendar reminder for a certain date each year to make sure you are not charged any fees in the future. .
For more tips on saving money, browse the topics on MoneySavingExpert.com here.