Paypal have set a debt collection agency on me

RowaN

Paypal would like to think that I owe them £121.03. A very polite lady has just called me from 0870 010 2433 and told me that I have 7 days to pay her, otherwise it will go back to paypal as unpaid, and they may take further action. What are my options here, are paypal likely to take me to court?

The reason my account is £121.03 in debt is that paypal decided to refund a customer who returned a product claiming it was faulty. It was not fautly, and I provided proof of that to paypal.

Does the following advice apply, or is this only for USA law?
http://paypalsucks.com/nco-collection-agency.shtml

Any advice greatly appreciated, thanks in advance guys.

robmcdougal90

if the person has returned the item to you then u have to give money back aslong as it is in the same condition

doingwhatican

So you have got the item back but you didn't refund the money and paypal have refunded it for you. I would suggest that you resell the item and put the money into your paypal account.

lynxptc

All the debt collection agency will do is send you threatening letters with court action, but they never will take you to court because the evidence they have will not stand.

pennylane99

if debt collectors are chasing, it will probably show up on your credit record/history as well.......as an outstanding debt....

Contains_Mild_Peril

If you have the item back and it's not faulty, at least you have the opportunity to resell, although you will probably end up losing money. Since the buyer has been refunded, you can file an unpaid item dispute (assuming it's an eBay item) to claim a refund of your final value fees from eBay, unless it's been more than 45 days since the sale. If you haven't already done so, I would also suggest that you add this "customer" to your blocked bidder list.
As for the "debt", unfortunately you'll probably end up having to pay it, and if they set the debt collectors on you they'll add extra to your bill and it's likely to affect your credit rating, so unfiar though it is, it might be tactically wise to pay up if you can. If you can't or won't pay within 7 days, let Paypal know about it.
The info on the page to which you've linked does appear to apply to US law, so will not be a reliable guide in the UK, but a lot of the rules will be similar.

froggy_girl128

pennylane99 wrote: »

if debt collectors are chasing, it will probably show up on your credit record/history as well.......as an outstanding debt....

It will only show up on credit records if you go to court and lose. Debt collecting agencies can not put things on your credit file.

Its only a small amount and I know when worked for a collection agency (collected for British gas, npower, national car rental, chubb) that the limit to sue was debts of £400)

Searcher

RowaN wrote: »

Paypal would like to think that I owe them £121.03. A very polite lady has just called me from 0870 010 2433 and told me that I have 7 days to pay her, otherwise it will go back to paypal as unpaid, and they may take further action. What are my options here, are paypal likely to take me to court?

The reason my account is £121.03 in debt is that paypal decided to refund a customer who returned a product claiming it was faulty. It was not fautly, and I provided proof of that to paypal.

Does the following advice apply, or is this only for USA law?
http://paypalsucks.com/nco-collection-agency.shtml

Any advice greatly appreciated, thanks in advance guys.

So you have the have the product back and kept the money?

beeniemac

You should have refunded the customer tbh - if he returned the product at his cost especially!

Just sell it again?

molar

robmcdougal90 wrote: »

if the person has returned the item to you then u have to give money back aslong as it is in the same condition

Is this correct? Distance selling regs don't apply to auctions.

kit

If you had the product back then I agree that you should be paying paypal back.