Martin Lewis warns PayPal users over 'inactivity fee' and how you can avoid it

14 October 2020, 11:40 | Updated: 14 October 2020, 11:45

By Alice Dear

Martin Lewis has issued a warning to PayPal users over a £12 fee they could be facing later in the year.

Money Saving Expert Martin Lewis has warned PayPal users over their new 'inactivity fee' which comes into effect in December.

The online payment brand has introduced a new policy that will charge people who have been inactive on their PayPal accounts for a year or more.

PayPal users will be charged £12 annually if they are not 'active' on their account.

Inactivity is counted as not sending, receiving or withdrawing any money from the account, as well as just simply logging in.

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Tweeting about the change this week, Martin Lewis wrote: "Paypal users warning. It is going to introduce a £12 inactivity fee."

However, he has warned that you can avoid the payment by simply logging on to your account before the cut off date, which is December 16, 2020.

If you have no money in your PayPal account, don't worry, as they will not being taking £12 unless there are funds – even if your debit or credit card is linked to the account.

For those being charged, the company will be sending notifications of the fee 60 days, 30 days and seven days before.

If you want to avoid a fee in the following years, it is important you login to at least once every 12 months.

If you find you are not using your PayPal account, you can also close your account after logging in.

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