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Thread: PayPal Canada Debt- Will It Appear On My Canadian Credit Record?

  1. #1
    canadaguy Guest

    Default PayPal Canada Debt- Will It Appear On My Canadian Credit Record?

    PayPal allowed a scam chargeback on my account for $8000 while I was outside the country and unable to reach a computer. Apparently there is no way to appeal it.

    Now I have a company called NCO calling me every day reminding me to make the payment and telling me that they haven't yet reported the debt to credit agencies. Now my account has been in the negative for 3 months.

    Can they report me to Equifax? Is this possible in Canada? This is the last thing that I need. My credit score is above 700 and I want it to stay there.

    Frankly I was thinking of just not responding and not paying them. The only problem is that I need a PayPal account for business and personal stuff and eBay.

    Does eBay share information with PayPal? Will they close my eBay account too?

    Can anyone here offer some factual advice from experience?

  2. #2
    Disgruntled Guest


    NCO is the sole collection agent for PayPal in Canada. Anything bad you've heard about PayPal, NCO is 5 times worse- they obviously know what kind of client they have, yet go full-out to try and collect on dubious debts. Of course, I find most collection agents to be very generous with their interpretation of laws and the techniques they use to be somewhat less than admirable and above-board.

    Will they report negatively on your credit rating? Absolutely. It costs them virtually nothing to do this as they will likely have a contract with the 'rating' companies (TransCanada and Equifax- who are both collection agents as well), and for many people this is a real "motivator" to clear up a debt- it's just another collection technique to them. Find a way of living with a bad remark. Debt is relative- if you have a non-payed $8k "debt" and a million dollars in up-to-date loans- no one in their right mind is going to have an issue with the $8k.

    How can you "fight" an item put on your credit report by a collection agent like NCO? Take them and their client to court if they have not been able to prove the debt is valid or there has been some sort of dubious or otherwise inappropriate activity or lack thereof on their client's (PayPal's) part. Part of the problem here is that PayPal and their collector, NCO refuse to give out a Canadian business address for PayPal (there may not be one, NCO claims it's "irrelevant as there is a valid contract"- which of course may be BS- but again it is a circular argument designed to limit people's ability to fight back on valid issues). Beyond that, you're basically screwed and they know it- the "credit rating" system in Canada is poorly managed (intentionally, in my opinion) and does not reflect reality as most reports to it are becoming increasingly negative reports, not positive- i.e. little of any significance is listed on these "reports" if your credit is good, much more is listed if you have an issue. You may also want to note that these "credit agencies" are no such thing- they are private companies (TransCanada and Equifax) whose main business is collecting debt as well- they are collection agents that charge a subscription fee to other entities- such as other collection agents. Why do you think they want you to send them copies of photo id to get a copy of your credit report? Yup- to put in your file to aid the collection agents in the future. And no, this is not some sort of conspiracy theory, it is absolutely true despite the fact 99 per cent of the Canadian public is ignorant of it.

    If you "need" a PayPal account- then you're in trouble. Find a way not to "need" such an account. As long as you perceive a PayPal account to be a requirement- they have you by the short-and-curlies and can screw you at their leisure. Get out now, find alternate vehicles for payment and help drive PayPal and other companies with the same level of honesty and integrity (i.e. virtually none) out of business.

    As for PayPal causing a shutdown of your Ebay account- they are two related companies (Ebay is the parent corporation). Likely there is some "terms of service" mention that they can remove all your accounts under their management if you don't resolve your issues with them- but it doesn't matter, as, if you look at other peoples posts around here- PayPal will start notifying anyone who has sent you payment since they froze the account that the account is frozen, Ebay buyers will panic, your Ebay feedback will go into the toilet and Ebay will yank the account. The two companies work in concert with one another to ensure they get what they think they are owed- the shirt off your back and your first-born if that's their view.

  3. #3
    kirkenshrir Guest


    Now you're scaring me!

    I currently have a negative balance (around 300$) with paypal after my credit card company issued a chargeback for an item I never received - and Paypal didn't like that!

    I sill haven't gotten letters from NCO yet but can they really do that? Can my MasterCard buyer protection really cause me to get a collection agency to come after me, an in turn, ruin my credit?

    This is F**ked-up!

  4. #4
    sabzweb Guest


    Does anyone know how long it takes before PayPal sends a debt to NCO?

  5. #5
    Join Date
    Feb 2015

    Default NCO after me

    I have an unresolved claim dating from Nov 19, 2013. Basically, even if you send NCO a letter asking them to stop contacting you and that you will never pay them, they will keep sending Demands for Payment until they can get money out of you. I have recieved this Demand on Jan 24, 2015. I am also presently in the process of a mortgage approbation and absolutely no credit note has shown yet.

  6. #6


    People stop being scared because of this clowns. The things you need to remember are:
    1. If you had any trouble with Ppal and they claim money from you..and you are 100% clean just remove the direct debit with yopur bank...the card you used -call the bank and say you lost it and ppal cant take money from your account.
    2. Im not sure in some countries but here in UK they cant take money from your account if you do step 1. The bank will never disclosure your details or aprove payments wich you dont weant to unless there is somehow a court order.
    3. With the credit score- again here in UK there are methods to stop them contacting you....i will try to find the link for it (i think a person on moneysupermarket forum post it) and also you can take that off from your credit score because again if there is no court decision that you own the debit collection or their client , the credit score company is obligated by law to remove the file from your score.(and to be honest i never saw such a thing on my credit score and Ppal claim that i own 1600 because a reversed transaction where all their T&C was respected)
    4.. Try to find what are your rights in the country you are..All this clowns have TERMS AND CONDITIONS but their T&C should be conformed with the country constitution laws and your rights. Lets all open a company and make our T&C like.."if i want i can close your account and i take your money"...

  7. #7
    Join Date
    Jun 2016


    do you know anything about the scamback, it could be paypal doing it.

    Somebody puts claim goods not received paypal tells the buyer that he rules in favour of seller and does not refund

    And he also tell sell that he rules in favor of buyer and keeps the money.

    There is no way to find out what is going inside PayPay, we need federal investigation to go with search warrant to PayPal

  8. #8


    Let NCO call you everyday, change your phone number immediately.

    I'm sure there are protection laws in canada like those in the United States. In the United States its called the Consumer Protection Act of 1978.

    Regarding the so called debt, first where is the $8000 and how did you get scammed? Remember PayPal is the one that charged the credit card and they were responsible for making all the security checks to make sure the payment was legit. If it wasnt thats PayPal's responsibility not yours, because you paid them a fee for the handling of the account.

    If you never got a dime of the $8000, then there's no debt owed. You were never in possession of the funds to begin with. So tell NCO to provide documented proof of the debt owed, and prove proof that PayPal deposited the funds into the bank account. If they cant provide proof, then go ahead and contact the government officials you need to like the Federal Trade Commission (For US) or whomever it is the evailent in the Canadian States.

    Regardless of what these clowns state, they do share information. They are still same company regardless. You call PayPal, you hear stuff about EBay, I think thats proof enough they are the same company. So in order for you to start a new PayPal and eBay account, you need to basically disappear. You might consider opening up your own online store and advertise thorugh Google Shopping.

    Going back to the collections, if you shipped the product out to the buyer and the buyer initiated a fraud dispute, then you owe nothing. Going back to the original statement, PayPal was the one that provided you the information, the shipment address, and other information. It was their sole responsibility to ensure the transaction was legit. They are the ones that charged that buyer's credit card not you, so legally they are liable for the debt. If you pay the so called debt owed, then who's going to pay you for the merchandise you shipped? As long as you proved the item was shipped your in the clear. Who's going to reiumburse you for the product? and dont let them give you BS about the cost of doing business.

    You can turn around and say that PayPal allowed the scam to happen, they refused to help you out in getting the money back or product, and they were the ones that caused it. You got paid for merchandise and you supposidely shipped the product out. You did exactly what you were to do. Were was PayPal placing the funds on hold until they validated the buyer?


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