PayPal

hoppo121

Hi all, hope someone can help here. I got made redundant a few months ago and my debts started to spiral, I was left with no option but to apply for a DRO which was granted. One of the debts was my PayPal account for just under 2 thousand pounds which was included in the DRO. PayPal still continued to contact me even after the debt relief order was granted. I contacted them to give them the DRO details and thought that was that, now I have received an email stating that my balance has been converted to euros and transferred to the Luxembourg office and they will be in touch?? is this PayPals way of getting around a uk DRO or does it not make any difference. Many thanksÂ*

sourcrates

Makes no odds what they do, after 12 months that debt will be wiped, and they will have no remedy against you.

Its quite usual for companies to sell debts subject to DRO`s, or to change their status, but in the end its just semantics, you have legal protection from your creditors, bottom line.

hoppo121

Thanks I’m still getting payment demand letters from them which is annoying, I don’t deny I owed them money and entering a dro really was my last resort. In fairness all the other calls and letters have stopped it’s literally just PayPal now constantly contacting me. I have had 3 letters the past week alone. 

mwarby

Have you contacted the agency that hiu used to apply for the DRO ? They should be able to help, either by making contact directly, or by helping you draft a suitable letter. As others have said they can't do anything, but it does sound like to me some action is needed to remind them of their obligations

They can still write to you, in fact they have to send you the default notices, and tell you when debt is sold on, these letters will include the balance and any charges they have added to the debt(so you know how much and who to pay, if DRO is revoked). They however are not allowed to demand repayment, until such time as the DRO is revoked(which isn't very common)

hoppo121

Hey 
thank you for the advice I will speak to the CAB who sorted it all out for on Monday and see if I can get them to contact them to remind them how a DRO works!! 

mwarby

It's likely they will be very busy, this is something that could IMHO wait a few weeks

hoppo121

hi 
hi I get where you are coming from but the whole point of myself entering a DRO was to stop the constant phone calls and letters, every other creditor has done this apart from PayPal, 9 phone calls and 3 letters last week, 13 phone calls and 3 letters the week before. And this has pretty much been the story from when I entered my DRO months ago. I called them numerous times to explain about the debt relief order so they are fully aware of it being in place. I understand that it’s pretty much toothless threats as I’m protected under the terms of my DRO I just find it stomach churning they think they can ignore the rules

mwarby

The CAB website advises that you don't talk to the creditor over the phone and instead send the a copy of the DRO. No doubt they can advise on stronger action, but I do fear its something you'd be asked to wait

I'd also consider trying the official complaint route https://www.paypal.com/uk/smarthelp/article/how-can-i-make-a-formal-complaint-to-paypal-faq2016

If you want to punish them for ignoring the rules you could always complain to the ombudsman https://www.financial-ombudsman.org.uk/faqs/all/can-complain-paypal. Although it will look better if you have exhausted the PayPal complaint process first

Generally phonecall wise the easiest thing is to block their number on your phone, or just hang up on them. It sounds  like all answering the phone and speaking to them is doing, is to encourage them to keep calling back

fatbelly

The Insolvency Service's DRO Team at Plymouth can also fire a shot at them if you ask. Actually it may be worth talking to them as this may count as a 'foreign debt':

Foreign debts should be scheduled in the DRO application and will count towards the £20,000 liability parameter, but the making of a DRO may not protect the debtor from enforcement of the debt in the country of origin or lead to the debt being discharged from these debts at the end of the moratorium period.

sourcrates

fatbelly said:

The Insolvency Service's DRO Team at Plymouth can also fire a shot at them if you ask. Actually it may be worth talking to them as this may count as a 'foreign debt':

Foreign debts should be scheduled in the DRO application and will count towards the £20,000 liability parameter, but the making of a DRO may not protect the debtor from enforcement of the debt in the country of origin or lead to the debt being discharged from these debts at the end of the moratorium period.

And just keep in mind, that if this debt does fall into this category, PayPal have yet to fire a shot in anger to recover any of its debts by legal means in the UK, unless of course, you know different..........

So they may shout the loudest, but that`s as far as it will ever go.

hoppo121

Thanks sour crates and fat belly I did think it was odd that they keep sending me letters saying the debt has now been converted into euros and is now with another countries office! I will give the insolvency service a call as the debt was definitely included in my dro but also rather oddly it’s now not showing in my credit file, as in it’s completely disappeared?? My worry with this is are they going to try and recover it through some euro legal loophole? 

Thanks for the advice all