PayPal keeping debt active post discharge

JimBlack

Hi,

This board has been a great help over the past couple of years - thanks everyone :beer:

I have a small problem with PayPal and was wondering if anyone else had a similar issue. I was made BR 18 months ago, discharged 6 months ago. PayPal acknowledge my BR and are no longer pursuing me for the outstanding balance as my debt with them was included in the BR.

However, they refuse to write off the balance from their own records and have said that the only way to do this is by paying the balance. Having a PayPal account would be really useful for my business, hence why I want to sort this and have an active account with them.

Are PayPal allowed to keep my debt active even though it was included in BR? Any advice would be appreciated!

Thanks.

debt_doctor

Hi,


As far as I can remember, Paypal are registered in Luxembourg and so are part of the European Union. (although I would expect an account offered in the UK to be normally subject to our laws) A bankruptcy in any European country (except Denmark) has the same affect on European debts as debts within England and Wales.
So they have no right to hold your debt as still outstanding following your discharge.
They do have a right however to refuse an account to someone who doesn't meet their terms and conditions.


If you feel aggrieved then you could complain. Paypal have given 'voluntary jurisdiction' to the Financial Ombudsman Service (or had 4 years ago when I last investigated this!) so if this still remains so, you could complain to FOS if you are not happy.
DD

JimBlack

Good advice - thanks.

I initially did log a complaint (although that was the only way I could get them to respond) and have asked them to look at the case again. They don't appear to be reporting to any credit file agencies, so the only record of the debt is with them - but as the debt was included in the BR, I'd assume they have some obligation to write it off, even if they do refuse my custom in future.

I'll investigate the FOS option after they respond.

Jim