Paypal’s user agreement has already been found in court to be non-enforceable, and now Paypal is resorting to hiding behind its Privacy Policy.
Stern advice - if ANY collection agency contacts you on Paypal’s behalf - IMMEDIATELY send out this -
Attempt to Validate Debt.
Under the Federal Debt Collection Practices Act, I am allowed to challenge the validity of a debt
that a collection agency states I owe to them. Keep a copy for your files and send the letter registered mail.
Your Name
123 Your Street Address
Your City, ST 01234
ABC Collections
123 NotOnYourLife Ave
Chicago, IL
Date:
Re: Acct # XXXX-XXXX-XXXX-XXXX
To Whom It May Concern:
This letter is being sent to you in response to a notice sent to me on September 30, 2008. Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.
This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you.
Please provide me with the following:
* What the money you say I owe is for;
* Explain and show me how you calculated what you say I owe;
* Provide me with copies of any papers that show I agreed to pay what you say I owe;
* Provide a verification or copy of any judgment if applicable;
* Identify the original creditor;
* Prove the Statute of Limitations has not expired on this account
* Show me that you are licensed to collect in my state
* Provide me with your license numbers and Registered Agent
These questions should be answered also
Who is the current owner of this alleged debt?
Who is the original creditor for this alleged debt?
If [NCO/AIS] is the current owner, when was it purchased?
Who was it purchased from?
Have you assigned the alleged debt to another entity for collection?
If so, who?
If [NCO/AIS] has sold or otherwise transferred this alleged debt, to whom was it sold and when.
At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau’s (Equifax, Experian or TransUnion) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following:
o Violation of the Fair Credit Reporting Act
o Violation of the Fair Debt Collection Practices Act
o Defamation of Character
If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist.
Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.
If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.
I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS.
It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records, any information obtained shall be used for that purpose.
Best Regards,
Your Signature
Your Name
Send it CERTIFIED MAIL
Whatever you do - DO NOT answer the phone from a debt collector, if you engage in a debt collector on the phone - simply state - clearly and politely -
“Thank you for the call - this call is being recorded for quality control purposes - this is not a refusal to pay - a debt Validation letter will be sent, thank you.”
Then hang up.
Paypal CANNOT collect on a “debt” because it is NOT a debt, Paypal is a transfer service, not a bank, not a loan institution, you did not take or borrow money from them. If they choose to pull funds from your account, they actually owe you. The only thing you owe paypal is their transfer fee, NOTHING MORE.
Once you send out that debt validation letter (which by the way also has a Cease & Desist clause it in to shutdown the collection agency) you will most likely never hear form them again.
If they try and pull a Supeano trick on you, you just won $1,000 - read:
state.in.us/judiciary/opinions/archive/03260101.ewn.html
Debt collectors can NOT make summary judgments, its ILLEGAL and they have violated the Fair Debt Collections Act and they now owe you $1,000
If after your send the Debt validation letter - they post negative postings on the 3 credit reporting agencies, they now owe you $3,000
Last edited by Milk; 01-10-2009 at 12:12 AM.
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