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Thread: Threatened with collection agency

  1. #1
    Join Date
    Jan 2014
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    Default Threatened with collection agency

    I posted this in another section of the forum, but perhaps it would have been better to post it here...

    Hi friends,

    Recently i (foolishly) sold 2500 worth of Bitcoins to someone via PayPal, they then reversed the payment. Paypal have emailed and called me telling me I need to pay that money back or they will pass it on to a collection agency. This, of course, is completely unjust as i have done nothing wrong and my hands are completely clean... AND I DONT WANT TO PAY THEM 2500!!!
    I closed that Paypal account, and my linked Barclays bank account prior to the chargeback.

    Does anyone have any insight regarding the severity of this situation? And is there any way that i can not pay that money?

    Any help would be massively appreciated!!

  2. #2
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    Jan 2014
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    I hate to tell you but there really isn't anything in the terms of Paypal that protects you for selling Bitcoins. The only thing you can do is submit the "buyer"'s address on a Bitcoin specific forum and hope people will Google his code when they try to do transactions with him.

    It's really sad people try to scam people out of their Bitcoins this way but I'm afraid there is nothing you can do. Unless you give back the money, they will keep trying to get it back.

  3. #3
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    Jan 2014
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    So what happens if i refuse to pay that money back?

  4. #4
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    Jan 2014
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    Quote Originally Posted by CB327 View Post
    So what happens if i refuse to pay that money back?
    They'll either pass you onto a debt collection agency and for awhile you'll get harassed by them calls and such, or I'm not sure I've heard people say its happened to them. If you have your bank account linked they take it from that. DON'T hold me to it as I've seen the first happen first hand, but the second I've heard from others on a different forum.

  5. #5
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    I have closed the bank account that was linked to my PayPal account, so i dont think they can get me like that.

    As far as the debt collector agency goes, what rights do they have? Can they come to my house? Will they? If i ignore them will the eventually piss off? Or do i just have to accept this loss and pay them the money i had stolen from me?

  6. #6
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    Jan 2014
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    Quote Originally Posted by CB327 View Post
    I have closed the bank account that was linked to my PayPal account, so i dont think they can get me like that.

    As far as the debt collector agency goes, what rights do they have? Can they come to my house? Will they? If i ignore them will the eventually piss off? Or do i just have to accept this loss and pay them the money i had stolen from me?
    First they will ramp up your debts. They have to work for you so you're also going to pay for that. So the longer you wait to pay, the more you will have to pay in the end.
    Then after a while (after a few reminders that you should pay) they will come to your house and basically take what they think would suit the value owed.
    If you're lucky, they take small stuff worth a total of $2500, if not, they take away your fridge, dishwasher, drying machine, TV, ... until they reach $2500.

    I really hate to say it but unless you pay them soon, you're in for one hell of a ride and even risk going to court.

  7. #7
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    Jan 2014
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    I have read a few accounts of people being pursued by debt collection agencies on behalf of PayPal and the general view seems to be they dont have the authority to repossess anything, as they arent licensed bailiffs. Have you been through something similar? How are you so sure they can do this?
    From what i've read these collection agencies are full of hot air and just try and use bully tactics to try and get you to pay. I'm more than willing to go to court as my hands are completely clean, i have proof of them receiving the Bitcoins via the exchange, so it is I who is the victim.

  8. #8
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    Quote Originally Posted by CB327 View Post
    I have read a few accounts of people being pursued by debt collection agencies on behalf of PayPal and the general view seems to be they dont have the authority to repossess anything, as they arent licensed bailiffs. Have you been through something similar? How are you so sure they can do this?
    From what i've read these collection agencies are full of hot air and just try and use bully tactics to try and get you to pay. I'm more than willing to go to court as my hands are completely clean, i have proof of them receiving the Bitcoins via the exchange, so it is I who is the victim.
    I've heard about the people mostly being harassed (Friend was scammed and was out 250) but they went after him threatened to have them take his property, but then later they don't pursue they just continued to harass but no repossession.

  9. #9
    Join Date
    Oct 2011
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    Tell any Collection Agency that you have never owed this money and that if they continue to attempt to collect a debt you are not liable for, you will sue them. Debt Collectors have a legal obligation to provide you proof that you owe the debt they are wanting to collect. Unlike the local electric or water company, a collection agency cannot provide this proof as they bought your debt for far less than face value. To make a debt collector go away: Inform them that you do not now or have never owed the debt and that if they continue to attempt to collect a debt you are not responsible for, you will consider it harassment and you will sue THEM. They'll sell your debt to the next dumbass agency. Lather, rinse, repeat. Eventually your debt becomes unsellable.

    You also have the right to tell any collection agency to stop calling. Once you tell them to stop calling you, they know that they must.

    Many months ago I answered the phone and found a debt collector on the other end wanting to collect a debt from PayPal. I had closed my PayPal account when it had a ZERO balance. The closed PayPal account when into a negative balance AFTER it had been closed. I told the collector to STOP TALKING AND LISTEN. Record the call if needed but do not say another word. I then said clearly: I do not now or have ever owed the debt you are attempting to collect. I will not tolerate any further calls to this number or any other number you have for me. Any further calls will be considered harassment and a complaint will be lodged against you with the Attorney General's office.

  10. #10
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    Jan 2014
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    Thank you very much! I really appreciate the help guys.

    I cant believe that in all this, with me being the only one in the situation whi has lost out, PayPal are pursuing me! With all the money they make, and all the emphasis they put on it being a secure payment facility etc. instead of going after the person who ripped me off for a large sum of money, they are coming after me for money that I couldnt even imagine raising in the time they have suggested.

    True to the name of this website, PayPal really does suck!

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