Mistake of the Day: PayPal Tells Dead Customer Dying Is Illegal, Legal Action Imminent

You can’t make this stuff up! PayPal sent a letter to a dead customer “telling her” that because she died she is in breach of her contract and that PayPal will take legal action:

“PayPal wrote to a deceased woman threatening to take legal action for having breached its contract by passing.

Lindsay Durdle had been diagnosed with cancer a year and a half ago. Her husband, who received the letter, contacted the BBC right after, who reported on the matter.

The letter said that she owed the company about £3,200, adding that: “You are in breach of condition 15.4(c) of your agreement with PayPal Credit as we have received notice that you are deceased… this breach is not capable of remedy.””

PayPal, when notified of this error by the BBC apologized, acknowledged the letter was “insensitive,” forgiven the debt, and launched an investigation into the cause.

These types of process errors can ruin reputations and represent a significant liability under UDAAP; so be careful out there!

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group