Hi, I will try and explain the scenario that took place between my wife and PayPal as best I can. One morning, my wife was contacted via Facebook messenger by who she believed to be a colleague at her workplace. This was before Christmas and the colleague explained that her PayPal account had restrictions on it and asked if my wife could accept money into her PayPal account for items the colleague had sold to help with the cost of Christmas. Being the ever pleasing colleague she agreed. After the money appeared in my wife's PayPal account, she was instructed to then withdraw to her own bank account and then transfer the money to another bank account provided by the work colleague. This was all completed without any issues. She arrived at her work that morning to be told by her colleague that there was never any request to move money by her and that her Facebook account was hacked. There were two payments made in to my wife's account, both approximately £490 pounds. All money had passed through so we though it was very strange, maybe laundering, but just moved on as our own money wasn't at risk. A few days later however the second payment of £490 was declined, leaving my wife £490 down. We didn't really understand what happened but we assumed the account from which the funds were sent was either hacked as well or they were dodgy too. We contacted our bank to find out where the final destination of these funds went, and to log a case of fraud, but it was a German, online bank and they have yet to enter successfully into dialogue with our bank, so nothing is progressing. And we don't expect it to get anywhere. We now have the PayPal debt collection agency chasing her which we are not happy about. We are also not happy about the fact that no one at PayPal, the bank or any of the other fraud organisations is willing to look into the case in any more detail, despite this transpiring to be quite a common [problem]. Should we stick to our guns regarding this or will that be futile? Do Westcot and/or PayPal take these kind of things to court? Will this effect my wife's credit? I would also like to point out that all conversations that took place on Facebook etc have been recorded and ready to be shown to anyone who needs to see them.... Thanks in advance. James

Its a ccj I definitely don't want.... Because I didn't pay when I said the phone calls began non stop. This was because the emails I sent had not been past from the customer services department. I eventually answered and said I want a further reduction to close the account. If it was only partially settled that's fine as the debt is gone from my file and they couldn't actually mark it as such or anyone looking won't see it.... I offered 400....if they accept I'll pay and I'll be happy...

Ill try and recap on the situation so far..... Student overdraft of 1000 By the time I finished studies in 2005 was up at 2000, the limit was increased by simply entering it online and submitting December 2006 my card was swallowed and my account closed with 410 pound in it No contact with them until late 2008 when they managed to find me at a total different address [how can they do this] Started to make payment for about a year, paid back quite a lot in this time I was using giro slips to pay as I had no bank account and was unwilling to set up and standing order/direct debit on my partners bank account The slips then stopped coming, no letter or warning, which I though was ****, this must of been when they sold it on Last year Lowell contacted me requesting payment, so a good few years after the payment slips started Never paid anything to them or contacted them until I was letting them know I request a SAR from Lloyds, which was a month or two now Lowell froze my account until I had received my data and made my conclusions I then contacted Lowell by email to say I had looked over the documents and was satisfied with them Emailed Lowell offering 600 pounds to close the account They emailed to accept I phoned them last night to confirm they were accepting the 600 to close the account I was informed that it would only be a partially satisfied debt Wasn't happy, so came back here Checked experian and I have no debts on file from the 3 I did have at the start of last year It does say however I have no settled accounts, which I hope doesn't effect mortgage apps Really don't want to pay as I need that money for a deposit I think I am happy that my credit score/file/report is OK now, or the best it can be for now, I just don't want to walk away from this if there is a risk it will come back to bite me in the run up to mortgage time....

How much will this debt be worth to them do you think.........? I really don't want to pay anything, as the whole point of this attempt to sort out my finances was to get my credit report in order, which it seems to be now, credit score of 974 [i know this doesn't really mean much in terms of getting a mortgage]..... I just don't want to be hassled from them or anyone else from now on, but will they walk away with nothing......I cant see that happening..... And you said they might seek payment through the courts...........

I emailed them and said this: I had planned to pay the reduced amount last night but after further thought I cannot walk away from this debt with a "partially satisfied" marker. In fact the original default was removed from my credit file months ago, so nothing I do from this point forward will have a positive effect on my file. In light of this and the fact a large fraction of this debt is unfair charges and interest, I would like to rethink my next move. Please only reply via email. Regards, I am still waiting on a response from them.... I also went to another forum and got this response to my situation: If the defaulted account has dropped off your credit files then that is it. It should never appear again, even with a settlement or partial settlement mark. If it should come back you can complain and have it removed. Keep copies of the old reports so you can prove the old date. The debt collector is either trying mislead you into thinking they can put it back on, or they are too dim to realise it has already come off. Either is possible with DCAs. Any comments on that response.......

I think its all clear in my head then I just get confused again..... Now that the debt has dropped from the credit file no one can take me to court is that correct....

Was me actually......they contacted me as they had been contacted by Lloyd's saying I was in possession of my data...,. I said I was satisfied all was well then just hit out with 600...... They replied in email accepting......

I was unclear whether or not Lloyd's had taken off the contents inside my account when they closed it because of the overdraft.....the sar revealed they did.....and so the amount of 710 is the exact amount I owe..... I have no other debt now.......absolutely nothing...... So what can i do to stop Lowell chasing me once more.....

So settling this debt won't revive the defaulted account......? Or have a positive effect by registering as a settled debt.....? What should I say to Lowell now.....?

After looking at the sar I confirmed that the amount was correct......so that's what I owe...... I just checked experian and I have no outstanding accounts, which is great, however I also have no settled accounts, which is a negative factor....... Can I say to Lowell your getting nothing now......? If I do settle it, what effect will this have on the credit report......?

I have never actually spoke with anyone till tonight so they have been OK in that sense......I managed to stall the account with the SAR so no bull**** stories from them so far....

I am in a position to settle it all.....I just don't want to......hence the 600....... But I'm questioning whether they should get anything if as you say I can confirm no default on my cra..... What should I do..... Thanks guys.....

I still need to go back to experian and check my file....... The last report I got showed Lloyd's and no Lowell even at the time they were in contact.......however I was of the belief this was because of a delay in updating the file....... I spoke on the phone this evening as I was ready to pay the 600 so didn't think there was a reason not too....., Was this bad.......

I haven't actually paid anything yet mate......thank god...... So paying it off in full is the best idea with regards how I look for mortgage applications.....

Why......what will that mean for mortgage applications..... Can it be resolved after a settled has been paid