Do I Have to Pay PayPal Debt Collection?

You may wonder how you could go into debt with PayPal. Moreover, you may wonder, ‘do I have to pay PayPal debt collection’ when it happens?

Check out my post which explains how and why you may end in debt with PayPal. Then how to deal with the situation to achieve a better outcome. Read on to find out more!

Do you have to pay PayPal Debt Collection?

You might not have to pay PayPal Debt Collection.

If you genuinely can’t afford your debt repayments then looking into whether you could have your written off might be just what you need. 

If you want to find out whether you qualify for having debt written off or payments lowered then fill out the short form below.

First, what is PayPal?

PayPal is a massive success story that’s a force in the financial sector. More people use PayPal to pay for goods, and send money to friends and family than ever before.

Moreover, business owners take advantage of the service because it’s fast and convenient.

You must prove who you are to register an account. Plus you must link a bank account to your PayPal account. Also, PayPal offers a debit card which is linked to your main PP account.

So, how do you go into debt with PayPal if everything is linked? I’ll explain in the section below.

How could you end in debt with PayPal?

Going into debt with PayPal is relatively easy. All it takes is to lack funds in both your PP account and your bank account. For example, you pay for something with PayPal but there’s not enough money in the account.

PayPal tries to draw money from your linked bank account but there’s not enough money in it to complete the transfer. The result? Your PayPal account shows a negative balance when you don’t have enough money in your bank account to cover the missing amount!

In short, suddenly you owe money to PayPal which triggers PP fees and a letter telling you to add funds to your PP account.

But there are other ways you could fall into debt with PayPal which I’ve listed here:

• A claim is started against you via the PayPal platform. It happens when you sell something and the buyer pays using PayPal. If they’re dissatisfied with the purchase and you don’t sort it out, the buyer raises a claim against you. When it happens, PayPal puts the amount on hold until the matter is sorted out. It can leave a negative balance on your PayPal account
• A bank transfer payment you receive on your PayPal account is reversed leaving you with a negative balance

Here’s an example of how one person got a negative PayPal balance:

Source: Moneysavingexpert

Can you lower your repayments?

If you’re struggling to pay back your debt, then you might qualify for a debt solution.

Some solutions lower your monthly payments while others write off a portion of your debt. 

To find out whether they could work in your situation, hit the button below.

Get Started

Does PayPal add fees to a negative balance?

Yes. PayPal adds fees to your account when there’s a negative balance. These fees can soon add up when you’re unable to add funds to your account. Moreover, if you have any ongoing payments to people from your PP account, these could still be taken!

Can PayPal Credit get you into debt?

Yes. You could run into debt when you run up a hefty balance on PayPal Credit and can’t meet monthly payments. PayPal Credit is a credit card without the actual physical card! It lets you buy things online just like a traditional credit card.

Late payment fees can soon add up and at £12 for each missed payment, the debt increases!

How does PayPal treat debt?

When you fall into debt with PayPal, you’re given 90 days to contact them and if possible, sort things out. When you don’t get in touch or pay the debt, PayPal could send your details to a debt collection agency!

Don’t ignore PayPal when they get in touch with you over a negative balance. It’s far wiser to stay in touch and sort things out so you achieve a better outcome!

Remember, PayPal gives you 90 days to sort things out and if you’re really struggling to pay, contact a debt adviser sooner rather than later.

Which debt collectors does PayPal use?

PayPal could use a debt collection agency to recover a debt. Or they may sell the debt to a debt collector. The two agencies that PayPal typically uses are:

• Wescot Credit Services
• Akinika

Both debt collection agencies are regulated by the Financial Conduct Authority (FCA). So, in short, there are things they can and cannot do when they contact you over a PayPal debt.

What should you do when PayPal Debt Collectors contact you?

Don’t ignore any letters you get from debt collection agencies that are chasing you for a PayPal debt. It’s easy to bin the letters but it doesn’t make the problem or the debt collector from going away! 

Debt collectors are notoriously persistent. Plus, you miss out on the following:

• Discovering they got the wrong person and the debt isn’t yours
• Finding out the debt is statute-barred and therefore unenforceable
• Being offered an affordable repayment plan to resolve the debt
• Having part of the debt wiped off

You could also have to deal with the following when you ignore things:

• Being taken to court
• Receiving a CCJ on your credit history
• Being reported to credit bureaus
• Having enforcement agents (bailiffs) come to your door

Ask the debt collector to prove the debt is yours before you admit, sign or pay anything to them! They are obliged to prove you owe the money by providing solid proof.

You shouldn’t just accept their word for it!

Can debt collectors just turn up?

Debt collectors can legally visit you at home. However, they can’t visit you at work. Also, they should give you advance notice before they show up. So, don’t ignore a letter from a debt collector telling you they plan to visit you.

Is the debt statute-barred?

A debt collector can’t force you to pay a statute-barred debt! The courts won’t hear cases about debts that are at least 6 years old. So you won’t get a CCJ for refusing to pay!

If the debt meets the following criteria, tell the debt collection agency it’s over the limitation period:

• You didn’t admit owing the money in the last 6 years 
• You never paid any money to pay off the debt in the last 6 years
• There’s no current CCJ registered against you relating to the debt

The debt collection agency should stop contacting you and if they don’t, file a complaint with their head office. After this, you can file a complaint with the Financial Ombudsman Service!

How do you contact PayPal?

I’ve listed PayPal’s contact details here:

What debt help is there?

You should seek advice from one of the debt charities if you’re struggling with a PayPal debt. Don’t try to cope on your own or deal with a debt collection agency if you’re unsure what to do.

The advice you get from debt charities is free and impartial. It could save you a lot of stressful calls and help you deal with a PayPal debt so you achieve a positive outcome!

Here are three of the major debt charities in the UK:

• StepChange
• Citizens Advice
• National Debtline

“It will only get worse” 😩

It’s cliché to say, but with debt it’s true; the longer you leave it, the worse the problem gets. 

There are straightforward and effective ways to deal with debt, but you have to know your options. 

Fill out the short form to find out about the debt solutions that could reduce your monthly payments or even write off some of your debt.

Get Started

Lastly, do I have to pay PayPal debt collection?

You may have to pay PayPal debt collection if they can prove the debt is yours and that it’s not statute-barred. You should try to negotiate an affordable payment plan with the debt collector.

But seek advice from one of the debt charities before you admit, sign or pay anything towards the debt first!

That said, if a debt collector can’t prove you owe the money, they can’t make you pay. Moreover, if the debt is statute-barred, you may not have to pay either. The debt collector can ‘ask’ you to pay, but you have the right to refuse!

Thanks for reading my post. I hope the information helps you decide what to do about a PayPal debt so it helps solve a stressful situation positively!