Paypal credit account

[Deleted User]

Hi everyone, i currently owe Paypal about £4500 (they offered me a credit account and i accepted when i shouldn't have). It went into default in April 2020, which is a few months after i stopped making any payments. This is the only loan i have now.

I was made redundant in 2020 and am not working at the moment. Paypal havent chased me which i'm surprised about as its a big amount. I  was wondering if it would be worth making a settlement offer once i start working again? Has anyone else here made any settlement offers to Paypal Credit?

 or as they aren't chasing me for this would it be better to wait a bit longer? I'm just a bit worried Paypal may suddenly issue me with a CCJ

Thanks to anyone who replies

sourcrates

Hi,
First off, courts issue CCJ`s, not creditors.

Creditors must also follow the civil procedure rules, which means a "letter before action" would land first, thus allowing you to make arrangements without the need to progress to court.

Now if you have researched PayPal at all, you will find no trace of them ever having taken anyone to court for non payment, ever, its something to do with an American company, located in Luxemburg, yet operating in the UK, a jurisdictional issue I believe, I am not aware of the full reasons behind this, they just don`t do it.

They do however use debt collection companies, so at some point you can expect to be contacted by one.

Again though, the collector does not own the debt, so cannot make you pay by taking legal action.

I would say its a case of waiting until the debt collection process catches up with you.

[Deleted User]

Thank you for your reply. 

Do you happen to know if PayPal are accepting of settlement offers? As the account is in default, and I'd like to clear this debt once I am working, I was thinking of offering 20% settlement offer to begin with. But I'm thinking if I do this it may trigger them to chase me for this debt

sourcrates

Creditors rarely accept settlements, especially whilst the full outstanding balance is still due.

You can try, but such deals are usually only offered on long defaulted old debts that have been sold on a few times, and may have questionable paperwork, your debt is far too new to qualify really.