Paypal Debt help

help1200

Hi all

Desperately need help please.

I used paypal to pay £3300 to an organisation. I made a mistake of assuming a payment had been made into my bank first as I had been assured it would be. So, they £3300 worth of payments went through paypal no problems with it stating the funds had been successfully taken from my bank account. Today I have spoken to the bank and found out the payment into my bank account hadnt taken place (I have been let down badly by someone who shall remain nameless) and so the dd requests from paypal for the money will be rejected.

This will leave my Paypal account balance in negative and Im guessing they are going to chase me for the money. I havent got the money to pay it now as I wont be receiving the money into my account in the near future.

Im not trying to shift the blame, I should have checked I had the money safe in my account. However, where do I stand with this? Surely Paypal/my bank shouldnt have allowed the payment to go through if it wasnt there? What should I do when Paypal come knocking for their money?

Any help or advice appreciated please

keyser666

Who was the initial payment into your account from? A known source or is this the usual advance fee scam?

help1200

No it was meant to be from a friend who I had done work for and owed me £4000. He assured me it was being paid - I trusted, didnt check and went ahead and settled some of my bills.

wealdroam

Perhaps you can arrange an overdraft with your bank so that Paypal can get their money.


Duplicate thread...

https://forums.moneysavingexpert.com/discussion/4448799

bris

Something strange here, Paypal can't take what's not there, are you sure it's not pending clearance, it wouldn't be rejected right away it usually takes about 5 days to confirm whether or not the money is there or not. The other side should be sitting on an echeque waiting to clear rather than cleared funds.

unholyangel

Indeed as bris said it can take a few days - especially depending on how you have your account set up. If you have bank account as your main method of payment with a debit/credit card as back up funding source, it will attempt a DD payment via your bank first and if that rejects, they will then attempt to take payment via credit/debit card. I've had it happen when Virgin took a DD payment 3 times by mistake.

Contact the people you paid and make them aware of the situation. You may also want to speak to your bank about it as its possible you'll end up with charges due to the failed payment. Be upfront about it and at least that way, they're more likely to be understanding.

I would also say its obvious your bank hasnt allowed the payments as you say your bank is going to reject them due to insufficient funds. As for paypal allowing the payment to go through, i'm sorry theres no easy way to say this but how on earth are they supposed to know how much money you have in your account? They only contact your bank making a request for x amount to be taken from your account. Your bank then either allows or rejects the payments.

help1200

But then how does any online transaction work? With any other website, if I try yo pay but have no money, it declines my payment?

Im not trying to deflect that I should have checked but I dont think paypal are partly responsible. They are acting as a very short term credit provider - buy today and we will take payment in a few days. That isnt what I agreed to with them.

wealdroam

help1200 wrote: »

They are acting as a very short term credit provider...

Not according to Paypal's Key Payment and Service Information...

PayPal does not provide credit and/or escrow services

help1200 wrote: »

...buy today and we will take payment in a few days.

Here's another quote from that document...

The payment will be executed as soon as the payment schemes available to PayPal allow (which can be within the next business day) after you give us your payment instruction. If the person you are sending your payment to instructs us that they wish to settle your payment at a later time, we will execute your payment order when they inform us.

It seems that they can delay payment.

help1200 wrote: »

That isnt what I agreed to with them.

Not sure that that helps too much, but it does appear that you have agreed to it.