PayPal Negative Balance and Debt

[Freddo5p]

I acknowledge that there are several threads similar to mine, but most of them are from before Brexit, so something might have changed.

 

Last week I was gambling online. Unfortunately, I lost control and gambled away all of my savings. Not only that, but PayPal (via Direct Debit) somehow managed to debit me several thousand pounds more than I had in my bank account. My PayPal balance is yet to turn negative, so I have not spoken with their collectors. From what I have read, I assume that they are going to give me 90 days before they pass on the case to a DCA.

 

1. Is what PayPal did even legal? I managed to find other similar cases on the internet, including an article about a young man who managed to deposit £150k the same way. That's simply outrageous! 

2. If it is not legal, how could I dispute this?

3. If it is legal, what can I do to sort it out with PayPal themselves without involving any DCA? From what I have read on this forum, the consensus is that I should simply ignore both PP, which are based in Luxembourg, as well as any pesky DCA, given that they are not bailiffs and cannot do anything. At the same time, I am slightly confused. If it is legal, PayPal should surely be able to find a way to take me to court. Furthermore, why would people here be advised not to pay money which they legally owe? 

 

Thank you!

 

Edited June 21, 2021 by Freddo5p

[dx100uk]

i don't believe the new PP method of not being an intermediary has come in yet, i think it starts on 22 june.

they will no longer be 'in the way' and if funds don't exist the bank will not honour it..

 

you should have messages in your ebay inbox or on the pp website that says its all now a new agreement with  pp.uk from that date, so they could do court, but we've not seen it and i doubt they will.

 

gets all the funding sources removed or blocked via you bank.

[Freddo5p]

Thank you for the swift reply.

 

My apologies; I hadn't checked in several hours. My PayPal balance is already negative.

 

Sorry, I am not sure I understood you completely. Who is not going to be 'in the way' of what?

 

Do you think I could dispute these transactions?

 

Thank you!

[dx100uk]

what you have done is only possible because PP until now act as a third party payment scheme.

from i think its tomorrow , you would no longer be able to do it as it would be a request direct to your bank no funds to transaction.

 

it might be better to address the gambling habit than to worry about money no-one most probably can never get back, tough luck on pp, its one of their known business losses across the world. just stop them from getting at your funding sources listed on your account page.

block pp at your bank.

[Freddo5p]

I see now... So PP taking non-existent money will not be possible from tomorrow onwards? Damn...

 

Yes, my bank suggested cancelling the DD to PayPal, and I will most likely do so. My PP balance is already negative, however, so (according to the PayPal agent I spoke to a few days ago) it is up to me to bring it above zero, and they will stop trying to take money from my funding sources after 3 failed attempts—I'd rather not take them for their word, though. I also have an appointment for opening a new bank account for tomorrow.

 

How should I proceed, given that my PP balance is already in the red? I will try to call them in the next couple of days as I am interested in hearing what they have to say, but should I cooperate or begin ignoring them? 

 

Regarding the gambling, I called GamCare last night.

 

Thank you!

[dx100uk]

well done on address the gabling, that the most important step.

 

pers i'd simply ignore PP, there remains little they can do. you've informed the bank NOT to honour any payment requests from PP by ANY method (this should include Continuous Payment authority) get that cancelled at the bank if you had a debit card registered on your PP A/C funding sources.

 

 you are treading new ground, but since brexit, i've not seen any difference upon how these are dealt with anywhere.

you simply cancel all payment methods and ignore them.

 

dx

 

[Freddo5p]

I see, thank you.

 

I assume that if I start ignoring them, they will pass on (but not sell) the debt to a DCA, but I am not sure if they will have any more legal authority than they had pre-Brexit. What is the worst that could happen if I start ignoring the debt collectors as well? Perhaps I'd receive a letter of claim and be taken to court? And the best? The debt will be written off in 6 years?

 

 

[dx100uk]

dca's are not BAILIFFS

and have 

ZERO legal powers on any debt no matter what it's type.

 

as i said we've not seen any letter of claim issued ever to date, but we are in new times, however, i would suggest your PP A/C has existed for many years or certainly well pre brexit, so the old 'agreement' would still apply unless you've agreed to vary them and again i've seen nothing bar

 

what i remember was sometime in may/april there were emails..that in late june some things were changing by default unless users opted out. one of which was PP's involvement in bank<>you transactions using the PP Portal

 

 

[Freddo5p]

Yes, I've had my PP account for many years. I have not explicitly agreed to any new terms and conditions, but as you know, PP (and companies in general) simply inform you when there is a change to their rules, so you automatically accept them or you have to inform them if you do not agree with the changes and want to have your account closed.

 

Thanks!

 

 

[Freddo5p]

Also, will ignoring the debt collectors have any effects on my credit score or does this only happen if you formally set up a debt repayment plan and then fail to stick to it? Can the PP/the DCAs file a CCJ against me?

 

Thanks!

 

 

[dx100uk]

no to everything

 

 

[Freddo5p]

Thanks!

 

I have already spoken with Citizens Advice. They offered me an appointment and advised me not to give or promise anything to PayPal.

 

 

[dx100uk]

don't go talking or acting upon info any of these debt advice orgs give, they are at best mildly correct but mostly never go near any enforceability issue as they get a cut of what you pay if you do thru them. they are mostly funded by the banks and the DCA's

 

pers i'd ignore everything until/unless you ever get a letter of claim from anyone, which i very very much doubt.

[Freddo5p]

I'm interested in hearing what they have to say, but this does not necessarily mean that I will do as they say, of course. I'm simply trying to find as much information as I can. 

 

Thank you for the advice. I will try to keep you posted.

 

 

[Freddo5p]

Hi! I tried messaging you, but I keep getting an error message. Could you tell me how to access the PP service which 'lets you download all data they have for you'? Thank you!

Edited February 24, 2022 by dx100uk
unnecessary previous post quote removed

[dx100uk]

there is a help section, go look?

[dx100uk]

posts moved to your own existing thread

 

dx