Negative Paypal, when collections agency?

Sedoc94 · #1 10-05-2012

Hey,

So I am using a legit ebay and paypal account.

Today I have gotten a eBay SNAD dispute and they put the $710 funds on hold which brought my balance to -$440 (negative). And the funds will be released again after I have won the case.

From what I know is that eBay disputes can take up to 30 days which means my account will be in the negative all that time.

What I want to know is how long it takes before PayPal forwards it to a collection agency to come get their money?

Thanks.

slim jim · #2 10-05-2012

A lot longer than 30 days. I would have to imagine at least 4 to 5 months but prob longer

Sedoc94 · #3 10-05-2012

Some other sellers I know say it usually takes 2 to 4 weeks. :/

goofball · #4 10-05-2012

Slim is correct. In addition whilst something is in a "disputed" status niether party can be reported to a credit bureau for anything in relation to that dispute. nor sent to collection for it.

I had my old pp account go into the negative at one point as well. It was prior to my bad standing with them now and it was my own account. Not a stealth. I called them and actually had a very productive converstaion with the gal I spoke with.

For obvious reasons when your in the negative you can't do certain things with your account. i.e., generally you wouldn't be able spend yourself further into the negative with this account. And any negative balance with any financial organization is always tracked and kept on record as part of the account history. That said it would probebly be prudent to bring your account back into the black via means of your own if possible. This could be done through continued sales or depositing funds of your own...again if your in a position to do so.

Bottom line is:
negative balance due to dispute = cannot negatively impact credit (the law)
negative balance + duration of time in that state = greater risk to financial institution
Which in turn CAN be used in decisions effecting and causing limitations to accounts. (without the need for explanation)

Sedoc94 · #5 10-05-2012

Thank you very much for your constructive response.

So, I don't have to worry about anything being colleted as my account is into the negative caused by the eBay dispute.

slim jim · #6 10-05-2012

Quote:

Originally Posted by Sedoc94

Thank you very much for your constructive response.

So, I don't have to worry about anything being colleted as my account is into the negative caused by the eBay dispute.

Well just because things are supposed to be done one way doesn't mean they can't report you incorectly. Just stay on top of the issue. They will warn you that you will be sent to collections before its sent. The 2 to 4 week thing is ridiculous

goofball · #7 10-05-2012

Quote:

Originally Posted by slim jim

Well just because things are supposed to be done one way doesn't mean they can't report you incorectly. Just stay on top of the issue. They will warn you that you will be sent to collections before its sent. The 2 to 4 week thing is ridiculous

So true... I once had my mortgage being reported twice for a period of time...talk about messing up debt to income ratio! Easy one to fix but it totally prompted calls from my cc companies as well as closure of several AE cards.

yep...stay on top it

Sedoc94 · #8 10-05-2012

Hmm.. well all I want to know now is if they are really going to warn me first before forwarding to collection agency, so I can do my best and my account go green again. I have no problems doing that.

I just don't want to get screwed with tons of extra costs if they send it to collection agency without any warnings and stuff.

slim jim · #9 10-05-2012

Quote:

Originally Posted by goofball

So true... I once had my mortgage being reported twice for a period of time...talk about messing up debt to income ratio! Easy one to fix but it totally prompted calls from my cc companies as well as closure of several AE cards.

yep...stay on top it

Yea it is crazy. I had a tax lien cause of a mistake the irs made. Took over a year for me to fix

slim jim · #10 10-05-2012

Quote:

Originally Posted by Sedoc94

Hmm.. well all I want to know now is if they are really going to warn me first before forwarding to collection agency, so I can do my best and my account go green again. I have no problems doing that.

I just don't want to get screwed with tons of extra costs if they send it to collection agency without any warnings and stuff.

If you are so worried then pay off the negative balance. It will be your money anyway

they_screwed_me_too · #11 10-05-2012

as little as 2 weeks

as long as a year

but always eventually

GreenBean · #12 10-05-2012

Quote:

Originally Posted by Sedoc94

Hmm.. well all I want to know now is if they are really going to warn me first before forwarding to collection agency, so I can do my best and my account go green again. I have no problems doing that.

I just don't want to get screwed with tons of extra costs if they send it to collection agency without any warnings and stuff.

Then instead of speaking to a forum, take your own action to solve the matter. Be ready to act once there is a final decision on the SNAD.

Amongst other things check the items you sell. A high cost item getting a SNAD against an account is never good. EVER.

Action will be taken to recover that balance.

paypal will start with notices, then forward your info to an agency.

Efforts will be made for resolution.