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Paypal - Overdrawn Balance
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aliceg1989
Posts: 7 Forumite
Has anyone ever had an overdrawn balance on PayPal? Looking for some advice as I'm very nervous.
I won't go into the full, long story, however I have a number of transactions that have been made over the last couple of days on PayPal, which are waiting to clear from my bank account in the next couple of days. However I have insufficient funds available in my bank account which will leave me with an overdrawn balance of around £4,000 with PayPal.
Will I incur fees? Will interest be added to this balance?
I have tried to remove my "linked" bank account on PayPal so to avoid any fees being charged by my bank (unpaid direct debit etc) but it won't allow me to remove it. I have been on to my online banking and cancelled the direct debit to PayPal, I don't know if this will have any impact though?
My bank account balance is currently zero. Basically I am keen for PayPal not to automatically take any money from my bank account as soon as my benefits get paid into there for instance, in the future months, as I need that money to live.
Do PayPal tend to do that? Am I best off setting up a new bank account and having my benefits paid into that new account?
Also am I best off dealing with Stepchange to repay this balance (do they deal with overdrawn PayPal balances or just credit cards/loans?) or dealing directly with Paypal's collection team to set up a repayment plan?
Thank you.
I won't go into the full, long story, however I have a number of transactions that have been made over the last couple of days on PayPal, which are waiting to clear from my bank account in the next couple of days. However I have insufficient funds available in my bank account which will leave me with an overdrawn balance of around £4,000 with PayPal.
Will I incur fees? Will interest be added to this balance?
I have tried to remove my "linked" bank account on PayPal so to avoid any fees being charged by my bank (unpaid direct debit etc) but it won't allow me to remove it. I have been on to my online banking and cancelled the direct debit to PayPal, I don't know if this will have any impact though?
My bank account balance is currently zero. Basically I am keen for PayPal not to automatically take any money from my bank account as soon as my benefits get paid into there for instance, in the future months, as I need that money to live.
Do PayPal tend to do that? Am I best off setting up a new bank account and having my benefits paid into that new account?
Also am I best off dealing with Stepchange to repay this balance (do they deal with overdrawn PayPal balances or just credit cards/loans?) or dealing directly with Paypal's collection team to set up a repayment plan?
Thank you.
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Comments
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PayPal are quite unique in how they collect bad debts, they are about the only company that never takes legal action to recover debt, they may threaten it a lot, but that`s all.
They don`t have a very good record on making payment arrangements though, it seems to be all or nothing with them.
Look on the eBay pages as other have had similar troubles with them, what they will do is pass your account over to debt collection quite quickly, or they may sell it, so you can make arrangements with whatever DCA picks up the debt.
Best to remove all possibility of them taking money from your account, a new account is a good idea.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Did you buy £4k of goods without the funds to pay for them?
Life isn't about the number of breaths we take, but the moments that take our breath away. Like choking....0 -
It’s likely too late now, but did you try to cancel the transactions when you realised you were unable to pay for them?🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
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