Can PayPal withhold money for PayPal credit debt

freshstart2023

I defaulted on my PayPal credit account and it has now been sold to Lowell. I was hoping to try and sell a few things on eBay to raise some funds. If I do this, could PayPal withhold funds due to the PayPal credit debt? Thanks 

LinLui

According to their terms the answer is yes - the terms also say that they lock your account if you owe them money for more than 120 days, which I guess may be the case if it is so bad they have passed the debt to Lowell.

MattMattMattUK

freshstart2023 said:

I defaulted on my PayPal credit account and it has now been sold to Lowell. I was hoping to try and sell a few things on eBay to raise some funds. If I do this, could PayPal withhold funds due to the PayPal credit debt? Thanks 

They could if you put funds in your PayPal account, but eBay does not use PayPal any more and has not done so for more than a year, they pay the money directly into your bank account.

sourcrates

Creditors have what`s known as the right of "set off".

If you owe them money, and you have funds in another account, owned or operated by that company, in your name, they can take those funds, subject to certain limits, to off set what you owe them.

This applies in most cases across the board.

Rob5342

That wouldn't apply here though would it, the debt has been sold so there is nothing owing to PayPal any more. 

As mentioned Ebay dont use PayPal any more anyway  they handle the payments themselves and transfer the money to your bank account after the items have been delivered. 

freshstart2023

Thanks folks, I had no idea EBay didn’t use PayPal anymore. That’s great to know. Thankyou so much