PayPal Debt from my Teenager!

Emily_Joy

masonic wrote: »

Instant bank transfers are immediate payments and do not have the same clearance delays as eCheques, because Paypal funds the payment initially to bridge the gap between the transaction and collection of the funds by direct debit. The receiver (Sony in this case) receives a cleared payment and is only at risk in the case of a Paypal dispute being raised or fraud. In this case, it appears the debt was sold on by Paypal and it has not yet come to light that the debtor is under age, so Sony is in the clear.

I am still wondering as to why PayPal account was active despite the fact that Direct Debits were bouncing? and what kind of complain the son raised with the resolution centre? Is it possible at all to accumulate £700 debt with PS4 without noticing that things got out of control? Is it possible that a large part of this £700 is due to interest?

d123

Emily_Joy wrote: »

I am still wondering as to why PayPal account was active despite the fact that Direct Debits were bouncing? and what kind of complain the son raised with the resolution centre? Is it possible at all to accumulate £700 debt with PS4 without noticing that things got out of control? Is it possible that a large part of this £700 is due to interest?

Why don't you just check the transaction history of the Paypal account? If it's not available, ask Paypal to supply it. It will show exactly what transactions were made.

masonic

Emily_Joy wrote: »

I am still wondering as to why PayPal account was active despite the fact that Direct Debits were bouncing? and what kind of complain the son raised with the resolution centre? Is it possible at all to accumulate £700 debt with PS4 without noticing that things got out of control? Is it possible that a large part of this £700 is due to interest?

Paypal won't charge fees on a negative balance, but my understanding is as you say, that once the balance goes negative the account cannot be used to make further payments until the negative balance is cleared. That points to the whole £700 being run up over a period of 5-7 days maximum.

From the perspective of Sony (PS4), there would have been no debt, but that level of spending out of the blue probably should have been treated as suspicious.

Emily_Joy

d123 wrote: »

Why don't you just check the transaction history of the Paypal account? If it's not available, ask Paypal to supply it. It will show exactly what transactions were made.

That's what I am suggesting - that the OP should find the actual state of the affairs before acknowledging and/or making any payments towards the debt.

Emily_Joy

IanManc wrote: »

If he were my son I'd keep my mouth shut and pay back the money, and hope my son had learned a lesson.

So frankly you are happy to pay whatever your son says his debt is without an attempt to check that what he says is actually true.

EachPenny

IanManc wrote: »

So by complaining to Paypal and Sony the son will not only end up with criminal convictions and whatever sentence the court imposes, the money owed will still have to be paid back too.

If he were my son I'd keep my mouth shut and pay back the money, and hope my son had learned a lesson.

Agreed. There is also the less severe potential sanction of a lifetime ban from using PayPal and Sony services. Who knows what future inconveniences and difficulties this might cause someone before they have even reached adulthood.

BooJewels

EachPenny wrote: »

Who knows what future inconveniences and difficulties this might cause someone before they have even reached adulthood.

If it were my son, he could consider himself lucky if he actually made it to adulthood after pulling such a stunt. I'd also be mortally ashamed at not having installed a better moral compass in him to ever bring such an issue to a public forum - a matter of such a nature would be dealt with very privately - for the shame of it.

Although I think the lack of return by the OP since the day starting the thread would reinforce my idea that it's not a genuine post - I think it may a poster we've seen before with fictitious problems caused by an errant teenager.

2e0arr

If the posting is genuine im sure Paypal do not want the commercial world who use Paypal to take in payments to know that their system allows a 15 yr old schoolkid to Open account and run up debts?

HMMM.....When i set up a paypal account I recall I had to register a debit or credit card and a direct debit to a bank account, an email and a telephone number. However I have never set up a paypal loan.

jonesMUFCforever

2e0arr wrote: »

If the posting is genuine im sure Paypal do not want the commercial world who use Paypal to take in payments to know that their system allows a 15 yr old schoolkid to Open account and run up debts?

HMMM.....When i set up a paypal account I recall I had to register a debit or credit card and a direct debit to a bank account, an email and a telephone number. However I have never set up a paypal loan.

That is easily done nowadays - most banks offer youth accounts with a debit card and no restriction on setting up any direct debits.

2e0arr

jonesMUFCforever wrote: »

That is easily done nowadays - most banks offer youth accounts with a debit card and no restriction on setting up any direct debits.

Thanks

I'm not quite sure about someone under 18 setting up a direct debit agreement because I think Ive heard that an under 18 cannot sign a legal agreement for a mobile phone contract.
Maybe thats a companies own rules or code of practice or Law I'm not sure. If it is law then surely that would mean they could set up a direct debit as means of paying something ?