Negative PayPal Balance (Pretty High)

Anonymous1990

Hi,

My PayPal Balance is currently on -£800.00 as of today.

This has happened because I was spending using eBay/PayPal when I had funds in my account but when PayPal went to take it (A week and a half later), the funds had already left my Current Account on other things resulting in my Negative Balance. On my PayPal Account, the Address is an old one and so is the Contact Number. However my Name, Bank Details, Card Details are all genuine and currently active. My bank will remain in good standing because if/when PayPal request the £800.00, it will just automatically decline so I am not worried about going massively Over-Drawn.

I'm now pretty scared because I'm Unemployed and have no way of paying back this £800.00, after researching and speaking to a few friends the only option we can see is that the PayPal Account is left Inactive. I know there is a very good chance of PayPal passing this onto a Debt Collection Agency but after researching, I've seen a lot of people saying PayPal don't have a leg to stand on so when they get no response from my old address (or visit old address), they will just stop sending letters and close my account. Would this be a good move? I really don't see any other options, I've rang PayPal to see if theres any way to just freeze my account while I secure Full-Time Employment but they rejected this idea.

So even if the Debt Collectors managed to find my Current Address, (My Fathers) he would be able to say I am not a Resident There (Which I'm technically not.), he is very clued up and he would have no issues is warding Debt Collectors off.

Your thoughts and opinions please?

CherlokHomes

Now if I was in your situation And owed £800 sheets the first thing I'd do is spend all day looking for a job.
Running away from this debt and getting Bruce Lee who's good at warning off debt collectors is not going to help.

quantic

I would suggest that you will probably get away with not paying this debt in the short term but eventually you will either end up with a default or substantially more debt added on when they begin chasing you in fee's etc.

moohound

What did you do with all the stuff you bought, that you didn't have the money for?

Anonymous1990

I thought the funds had already cleared so I had a shopping spree. The only reason I did this is because I was meant to be getting a £1,000 inheritance payment last week but it has fallen through. All my details are old and I'm not on the Electoral Roll and not on any databases really as I've just qualified from Uni and all details are very old, even my bank. I've done careful research like I said and 90% of everyone has said they left their PayPal's in a few thousand negative but were never even chased. Also I'm currently looking for work and even doing work experience to boost my employability. I spoke to my bank today and they said PayPal are always in trouble because no one ever signed a credit agreement with them to have the right to put them in a negative balance. Also I signed up to PayPal when I was about 16 so everything is in my favour really. Still worried about it all and wish I could just pay it all off now but in my situation I feel I'm doing the best option.

*Foolish*

As someone who has been in a similar situation (although not for that amount) I wouldn't run away from it, it come back and bite you in the bum! I paid back what I owed as soon as I could (was about £80) as it was my fault that it happened, I shouldn't have bought things via paypal, as I knew I had other things to come out my bank account. For me, I've noticed paypal payments usually come out within about 3 working days.
I had to sell what I bought. It's a pain, but could you not do this?

heartbreak_star

I had a negative PayPal balance of about £30 for a month and they almost turned it over to a DCA. EDIT - bit of research shows they pass it to Iqor.

Paypal is becoming more prolific across the web now. Is it really worth effectively banning yourself from using it?

It's a debt, like any other. They WILL register a default and that WILL trash your credit rating for 6 years.

Pay up. Even in instalments.

And don't rely on "money coming in" in the future.

HBS x

nat21luv

How about growing up and returning the items you bought on your 'shopping spree'? I'm sure your relative would be really thrilled to see their hard earned cash being spent on frivolously on rubbish.

Am I right in thinking you spent £800 with PayPal, then £800 from your bank because you thought it cleared? Then return things you bought with your bank card and transfer money straight over to PayPal. Any money not covered will require a bit of grafting to clear it off.

967stuart

OP, you are exactly what's wrong with the country today.

Idiot !

Anonymous1990

967stuart wrote: »

OP, you are exactly what's wrong with the country today.

Idiot !

So you've never made a mistake when you were younger? Thanks for your excellent input.

Anonymous1990

Thanks for the other replies. As I said I would pay this instantly if I had the funds. After getting more advice off the Internet I've decided I will write a letter to PayPal, photocopy it, and then post it off telling them I acknowledge the debt and am willing to pay it back in instalments.