PayPal Negative Balance and Debt due to gambling

1NEWLEAF

I lost £10,000 gambling and funded my account using PayPal via Direct Debir

PayPal takes the money from my bank a few days later, but my account didn’t have the £10,000 when they tried to take it.

They’ve made several attempts to collect, and now my PayPal balance is negative.

I’m wondering if I can dispute this since I deposited money I didn’t actually have into a gambling site.

I don’t want to pay something I’m not legally required to.

From what I’ve read online, the general advice is to ignore PayPal (based in Luxembourg) and any debt collection agencies (DCAs) unless they formally try to take me to court with a letter of claim.

Apparently, ignoring them shouldn’t affect my credit score, and they cannot get a County court Judgment (CCJ) unless they go through the court process.

Have their been an examples where someone has been taken to court or has received a letter of claim for a PP negative balance.

 I’ve also heard of post-Brexit changes giving PayPal more legal authority, but I believe that doesn’t apply to me since I haven’t used PayPal Credit and my account has been open since 2007.

Brie

I’m wondering if I can dispute this since I deposited money I didn’t actually have into a gambling site.

So you'd be admitting taking the money but want to pretend you didn't?  Frankly I think that is likely to get you in to a whole heap more trouble than ignoring it all.  It may mean they focus their beady eyes on you and escalate whatever collection process they might normally use.  

If you don't want to pay the money back that's a different issue.  Or if you need time to pay it back then that might be something that people here can help you find a solution of some sort.  

Of course the most obvious thing is do you have a problem with gambling?  If you do and that is not addressed then any debt solution is likely to be unsuccessful.  And I'm not having a go at you having a flutter on the horses or whatever.  A problem, gambling, drink, drugs, shopping, excessive charity, always needs to be sorted if it's the underlying cause of debt.  

Others may be better informed on what and how PayPal operates in situations such as yours. 

MyRealNameToo

1NEWLEAF said:

I’m wondering if I can dispute this since I deposited money I didn’t actually have into a gambling site.

That sounds like an admission to fraud? If you are concerned about CCJ and credit history you certainly dont want to be admitting to "no intent to pay" as the CIFAS marker will have much worse impact than a CCJ

1NEWLEAF said:

Apparently, ignoring them shouldn’t affect my credit score, and they cannot get a County court Judgment (CCJ) unless they go through the court process.

Normal accounts arent generally reported to CRAs, only if you take a formal loan from them. In principle there probably isnt a reason why they couldn't but at last check they dont. 

Oddly enough a County Court Judgement does only come from a court process. However a CCJ is more complex than that, as its both county court and high court but only after the judgement remains unsettled a month later. As such the CCJ acronym is unhelpful as you won't get a CCJ on your record even if it does go to court as long as you pay it off promptly. 

Isthisforreal99

In what planet do you think you are not legally required to pay it.

As has been said crack in with your masterplan and end up with a CIFAS marker for fraud which will be much worse than a CCJ.

Exodi

1NEWLEAF said:
I’m wondering if I can dispute this since I deposited money I didn’t actually have into a gambling site.

I don’t want to pay something I’m not legally required to.

Sorry, but this is insanity - trying to suggest to them that it wasn't a breach of your direct debit agreement, but fraud instead?

I think your irrationality is probably a deflection from the underlying cause, which must be addressed.

Brie said:

Of course the most obvious thing is do you have a problem with gambling?

I totally appreciate you're being sensitive, but I don't think we should shy away from identifying that gambling ten thousand pounds of money you don't have is a gambling problem.

1NEWLEAF said:
Apparently, ignoring them shouldn’t affect my credit score, and they cannot get a County court Judgment (CCJ) unless they go through the court process.

Naturally it has to go to court to get a County Court Judgement. For a £10k+ balance, I wouldn't dismiss the possibility.

PayPal will likely go through the motions - recruit DCA's for a while before potentially escalating it to court, but I think first and foremost you absolutely have to get a grip on your gambling problem.

Even if the debt did magically disappear (which I suspect it won't), you don't fix a leak by emptying the bucket.

Have you registered on GamStop? Do you have a support network?

ManyWays

You seem to be suggesting that, as the account is so old and PayPal regulation has changed, there is probably some defect in the paperwork that would make it hard for PayPal to win a case in court, so they (or a debt collector) probably wont try.
That may be true, but there is lots that could go wrong in practice. Unless you can give some links to people saying they havent been pursued in court for this sort of debt, or to anyone advancing a more evidenced legal argument, I suggest you should be careful about clutching at appealing looking straws.

I also think you should get help with gambling; Gamban is more effective than Gamstop.

What is the rest of your financial situation like? You have a very different option if you are on a low wage and owe another 30k of debt and have no assets, to being well paid with negligible other debts and a house with equity. 

sourcrates

PayPal/PayPal Credit have been FCA regulated since last November, its true they used to simply pass bad debts to the likes of Moorcroft or Wescott, but it appears more recently they have been taking action through the courts which is a major change in their collection policy.

Pinning your hopes on an outdated agreement may be flawed, as they will have contacted you to inform you of any new terms and conditions they were going to implement, and that by continuing to use their platform to transfer funds you agreed to these changes, that is standard policy with such companies.

1NEWLEAF

@sourcrates
can you send me any posts/articles where individuals have been taken through the courts by PP.
thanks 

trickydicky14

Exodi said:

1NEWLEAF said:
I’m wondering if I can dispute this since I deposited money I didn’t actually have into a gambling site.

I don’t want to pay something I’m not legally required to.

Sorry, but this is insanity - trying to suggest to them that it wasn't a breach of your direct debit agreement, but fraud instead?

I think your irrationality is probably a deflection from the underlying cause, which must be addressed.

Brie said:

Of course the most obvious thing is do you have a problem with gambling?

I totally appreciate you're being sensitive, but I don't think we should shy away from identifying that gambling ten thousand pounds of money you don't have is a gambling problem.

1NEWLEAF said:
Apparently, ignoring them shouldn’t affect my credit score, and they cannot get a County court Judgment (CCJ) unless they go through the court process.

Naturally it has to go to court to get a County Court Judgement. For a £10k+ balance, I wouldn't dismiss the possibility.

PayPal will likely go through the motions - recruit DCA's for a while before potentially escalating it to court, but I think first and foremost you absolutely have to get a grip on your gambling problem.

Even if the debt did magically disappear (which I suspect it won't), you don't fix a leak by emptying the bucket.

Have you registered on GamStop? Do you have a support network?

you don't fix a leak by emptying the bucket, I like that, well put.

sourcrates

1NEWLEAF said:

@sourcrates
can you send me any posts/articles where individuals have been taken through the courts by PP.
thanks 

No sorry, I`m simply going by posters experience on this site.