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Thread: PayPal collection

  1. #1
    Join Date
    Sep 2016

    Default PayPal collection

    I got off the phone with PayPal collections department this morning. They told me that it's automatically gonna be sold to a collection agency and they're gonna try to collect my negative balance of $1700 CAD. The thing is, I provide freelance services for web design and computer programming. I gave them the code that I designed for the client and the client won the charge back still. So I'm here panicking now that I have to pay off this debt. I'm 17 years old and I'm from Canada. Does anyone know anyway around this one? Should I be expecting a letter or a collection call?

  2. #2
    Join Date
    Jun 2016


    empty all your accounts and make sure there is nothing to collect.

    PayPal does not care and they will do nothing, they need a lot of money to fund PayPal CEO private expenses. Probably the guy called credit card to put charge back and the credit card charged PayPal.

    Your only option is to fight it in a small claim courts if you have proof of sale etc. You need some serious arguments.

  3. #3


    First off if you can legally prove that your 17 years old, then a collection agency cannot legally go after you. The fact that you have to be 18 years old to have a PayPal account is clearly stated in their terms and conditions.

    They are going to play on the factor that your a minor and will do anything to scare you. They will deliberately lie, cheat, and place the blame on you. So this is what you do.

    PayPal is a payment service and nothing more. The only thing they are legally responsible for is handling the transaction. PayPal gets sued every 3 months for their bullshit, and that's for the reason of how they do business.

    First, if you can prove that you provided the services to the buyer, then your free of the debt. The buyer was the one that committed the fraud and because he used his credit card and there was no proof of delivery, because it wasnt a physical product that couldnt be tracked, thats why you lost the case. The first thing I would do, is get a collection agency after the buyer if you know his physical address.

    Ok going back to the so called collections, your from a different country so in order for the collection agency to do anything, they have to go to your home country/provience and take any type of legal action, which they are not going to do. If you get a letter from NCO, they didnt sell the debt, NCO works for PayPal, and they take a percentage of whatever they collect.

    First and foremost, do not give PayPal any personal information, such as utility bills, the Canadian version of a social security card, nothing. You will not get the money back, they use that information so they know exactly where to start harrassing you with the collection agency.

    First PayPal has to establish proof of the debt owed. PayPal and NCO must comply with the Consumer Protection Act of 1979, so whatever your Canadian version is read that. So they have to prove that you didnt prove any work for this person and the chargeback was not your fault. The simple reason that PayPal legally charged the receiptents credit card not you, makes them 100% liable for the debt. They are simply trying to steal the money that they lost, you are under no legal obligation to PayPal back. The fact that they do nothing to help you fight the chargeback because your the seller and that person is the buyer. They rather scare you into actually going after the buyer. Thats the legal direction they have to follow because it was the buyer that initiated the fraud not you. PayPal is a payment service, nothing more. They know the risks, they are the ones that processed the charge, they are the ones that were supposed to do the security checks, etc. You werent the one that caused the chargeback, it was the buyer. So your under no legal obligation to pay PayPal jack shit!

    The fact your a minor, make sure next time you have a written, signed agreement with anyone that does business with you, and dont take credit cards for service related things. But as far as this case is concerned, I wouldnt worry about it. PayPal will deliberately lie to you, threaten you, scare you into believing anything they tell you, in order for you to folk over the money. Just dont log into the PayPal account.

    If you do happen to call them or wiend up talking to them. Just say, they were the ones that legally responsible because they were the ones that charged the buyer's credit card. They were the ones that were legally responsible to acess the risk, they were the ones that knew it was a services related payment, and they have to prove the debt is owed by you. Keep your emails with the buyer that you got, establish the proof that there was some sort of agreement between you and the buyer, and any prices that were agreed upon. PayPal has to prove otherwise.

    Then after that, if they keep busting your balls, demand that you see the chargeback paperwork that they submitted to the buyer's credit card company. If they didnt do anything to fight the chargeback, then thats more proof of their neglience. Also demand they submit proof that they refuted the claim of the buyer's credit card company (in a chargeback its the buyer's credit card company that makes the final decision) and you want to play games with those assholes, demand again, they provide legal documentation that they initiated a Prearbirtation with Visa or Mastercard (Prearb is when the chargeback goes above PayPal and the buyer's credit card company and gets review directly by Visa Mastercard - PayPal wont do this because its a non refundable $500 fee to them because they were the ones that charged the buyer's credit card).

    Conclusion, they wont go after you, just say you live on your own, and make them establish proof the debt is owed. and follow the guidelines. And they will do jack nothing.


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