Debt collection

Snuzysue

Please help, I'm going out of my mind with worry. My 16 year old has just told me he's been getting text messages from Moorgate Debt Collection Agency. It turns out he bought something using PayPal in December but when he tried to send the payment from his bank to PayPal, the transaction wouldn't go through so he was £21 in debit with PayPal.  He tried again tonight and the same thing happened.  I've now managed to transfer money from my PayPal to him so his balance is showing as zero.  

I made the mistake off googling Moorgate and I'm so worried they are going to start writing to us and turn up on our doorstep demanding extra money.  I've told my son not to ring them or respond in anyway and to hang up if they ring him but I'm worried the debt may have increased from the initial £21 because of debt collection fees. What should I do? Sorry for long post.

MorningcoffeeIV

Speak to the DCA and settle any outstanding balance.

Cheaper to do it now rather than continue to evade it.

Snuzysue

Are they even allowed to refer to DCA when he's 16 and it was only for £21? It seems extreme.

MalMonroe

Hi, so is it PayPal who have asked Moorgate to chase your son?

You say you cleared his PayPal account and your son's PayPal account is showing zero so it's not clear why your son is being chased for a debt that has been paid. 

Any debt collecting agency worth their salt will actually send a letter advising what they are going to do and not use texts. BUT PayPal (if it is them) should have contacted your son in the first instance to ask where the payment was.

Moorgate is a large company so I'm surprised that they have stooped to that level.
 
Your son could block their number on his phone. There have been so many scams by text that people can't always guarantee that texts asking them to click on links or pay money via text are genuine. Please take care.

If the item has been paid for and PayPal has also been paid, your son needs to let the debt collectors know, asap.

Here's some advice about what to do if debt collectors should ever turn up at your door -

https://www.stepchange.org/debt-info/debt-collection/home-visits-from-debt-collectors.aspx#:~:text=First, ask to see proof,collector ask them to leave

(You don't have to pay them and you don't have to let them in. They have limited legal powers.)

You should also ask your son to contact PayPal to let them know the outstanding balance has now been paid off in full and he'd be grateful if they could ask Moorgate to stop contacting him.

He also needs to get his PayPal account sorted out if he wants to use it in future because it sounds as if there's something wrong - it could be that his bank is stopping payments or something - but whatever it is has been going on for long enough since you say it's still not working properly today. He could possibly also make a complaint. PayPal doesn't always work - my daughter once had a terrible time with them - they ended up paying her compensation as they had made a catalogue of errors on her account. They don't always get things right.

Hope this helps a bit - I can't imagine anyone taking drastic action for such a small sum of money - which shouldn't increase at all if it has now been paid. And if it has been paid, then the debt collectors need to be told.