Negative PayPal Balance (Pretty High)

[Anon1990]

Hi,

 

My PayPal Balance is currently on -£800.00 as of today.

 

This has happened because I was spending using eBay/PayPal when I had funds in my account

but when PayPal went to take it (A week and a half later), the funds had already left my Current Account on other things resulting in my Negative Balance.

 

On my PayPal Account, the Address is an old one and so is the Contact Number.

 

However my Name, Bank Details, Card Details are all genuine and currently active.

 

My bank will remain in good standing because if/when PayPal request the £800.00, it will just automatically decline so I am not worried about going massively Over-Drawn.

 

I'm now pretty scared because I'm Unemployed and have no way of paying back this £800.00,

 

after researching and speaking to a few friends the only option we can see is that the PayPal Account is left Inactive.

 

I know there is a very good chance of PayPal passing this onto a Debt Collection Agency but after researching,

I've seen a lot of people saying PayPal don't have a leg to stand on so when they get no response from my old address (or visit old address),

they will just stop sending letters and close my account.

 

Would this be a good move?

 

I really don't see any other options, I've rang PayPal to see if theres any way to just freeze my account

while I secure Full-Time Employment but they rejected this idea.

 

So even if the Debt Collectors managed to find my Current Address, (My Fathers) he would be able to say I am not a Resident There (Which I'm technically not.),

he is very clued up and he would have no issues is warding Debt Collectors off.

 

Your thoughts and opinions please?

 

Edit: I should also point out I'm in England as I know Debt Collection Agencies differ.

[BankFodder]

I think that the only advice we can give here is to be straight dealing with everyone.

 

Stop using the PP account so that it doesn't get any worse - but I'm afraid that this is not a forum where we give advice on how to avoid debts which are properly owed.

[unclebulgaria67]

Why did it take over a week for your bank account to be debited and the debit rejected ? Sounds a bit odd.

 

Make sure that your bank won't accept any represented debit that makes you go overdrawn. If your bank account specifically does not allow overdrafts then it won't happen, but if it is a standard bank account, it is at your banks discretion as to whether they allow a payment to go through.

 

In your position, I would suggest that you write to Paypal advising of your circumstances and that you will pay say £20 a month towards the account until you are in a position to pay more. If you don't do this, Paypal will pass onto for debt collection and at some point I would expect a court claim to be issued against you, ending up with a CCJ on your record.

 

Here is a link to some standard letters that may help.

 

http://www.consumeractiongroup.co.uk/forum/content.php?590-Creditors-and-DCAs-Letter-Templates-Budget-Planner

 

If you have problems with Paypal accepting small payments, see if Stepchange or Citizens Advice will help you.

[Anon1990]

Thank you for the advice, I'll most likely write to them and photocopy it and then send it asking for a response by email. The last thing I will want to do in this situation is basically give them my current address.