PayPal Negative Balance and Debt

Freddo5p

Salamandrino56 said:

Hi Freddo5p,

Please could you let me know what the outcome of this was? - and your resulting actions

My younger brother is going through a similar situation now with Paypal, and we don't know what to do for the best?

Hello Salamandrino56,

I have just seen your post. I sent an email to PayPal, in which I disputed the 'debt'. They were supposed to reply in 8 weeks, but I have yet to hear from them—I haven't received any letters, emails, or phone calls from anyone.

I don't know if they'll decide to contact me in the future, but if they do, I will continue to dispute the debt and get the Financial Ombudsman involved.

Freddo5p

I am sorry for the double post. @sourcrates , have there been any post-Brexit cases of PayPal taking court action against anyone for any debt of this nature? In June 2021, you said that there were no known cases, is this still correct?

CAR248

Hi Freddo5p

I'm in a similar situation with PayPal and a gambling debt, I was just wondering how things were going.

I don't know what to do. 

Thanks 

Freddo5p

CAR248 said:

Hi Freddo5p

I'm in a similar situation with PayPal and a gambling debt, I was just wondering how things were going.

I don't know what to do. 

Thanks 

Hi, CAR248.

To this day I have not received a single email/text message/letter/phone call regarding the debt. The last email I received was an automatic email by PayPal informing me that my negative balance has been converted to USD, and my account got blocked shortly after (or before?) that.

Perhaps @sourcrates would know if there have been any recent cases of PayPal/DCAs taking people to court over debt of this nature. As far as I am aware, this has not happened even once in the UK.

All the best!

sourcrates

Freddo5p said:

I am sorry for the double post. @sourcrates , have there been any post-Brexit cases of PayPal taking court action against anyone for any debt of this nature? In June 2021, you said that there were no known cases, is this still correct?

I don`t trawl the Courts and Tribunal service website to be fair, my information comes from other advice sites, such as Legal Beagles, and Debt Camel, both of whom are fairly well switched on as how certain creditors act, and based on that information, and other posters past experiences, if you don`t respond to the debt collector, after a while, they return the debt to PayPal, and that is usually the last you hear from them.

It is possible at some point they may sell the debts on, that has been known.

It must be stressed that PayPal are quite unique in how they deal with bad debts, lots of threats, but no real action.

hameed92

Freddo5p said:

CAR248 said:

Hi Freddo5p

I'm in a similar situation with PayPal and a gambling debt, I was just wondering how things were going.

I don't know what to do. 

Thanks 

Hi, CAR248.

To this day I have not received a single email/text message/letter/phone call regarding the debt. The last email I received was an automatic email by PayPal informing me that my negative balance has been converted to USD, and my account got blocked shortly after (or before?) that.

Perhaps @sourcrates would know if there have been any recent cases of PayPal/DCAs taking people to court over debt of this nature. As far as I am aware, this has not happened even once in the UK.

All the best!

Hello Freddo5p, 

I am in a similar position and I believe PayPal shouldn't have paid on my behalf if the bank account didn't have money in the first place. Can I please ask if you have had any contact from PayPal since your last update? And would you be so kind to elaborate on what you wrote in the email to them? 

Thanks, 
UH 

hameed92

Looks like the post is now inactive as OP not replying? 

marcia_

hameed92 said:

Looks like the post is now inactive as OP not replying? 

 Start a new thread with your query someone might gave an answer 

JohnSmith321

Has anyone else had this happened with Paypal, and managed to set up a payment plan?

rnj

Something similar happened to me about 15 years ago, got a minor scam and ended up with a negative paypal balance. I wasn't aware of the negative balance and they passed it to DCA. The amount in question was very very small and I was threatened with all sorts by DCA so paid it. I was understandably miffed at the pettiness and decided to respond in kind, writing to the financial ombudsman. It took about 6 months but I got the money back

I can't recall much more detail but remember part of the complaint was that paypal were virtually impossible to contact at the time for any kind of assistance.