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Old 08-11-2023
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Default Does Amazon try to collect negative seller account balances?

Do they attempt to collect negative seller balances in some way other than attempting to bill the credit card on file?

Let's say the account has a -50K balance, credit card and bank account that were linked were both closed so any attempts to charge those methods were rejected. There were a few "Action Required: Pay your seller account balance" emails followed by a Section 3 suspension notice saying the account's now suspended because of a negative balance (though the account was already suspended prior to that).

Been about 6 months since the last Amazon email about it, and haven't heard anything since then. No emails from any kind of debt collector or the like.

I find this unusual since usually debt gets referred to a collection agency fairly quick after the company realizes that it's not going to be paid. Granted, a deadbeat Amazon seller is most likely a company that has no money to pay so it's probably not worth expending a lot of resources to try to collect on it, but I would expect SOME kind of contact by now to attempt to collect it.

The mailboxes for these companies haven't been paid for in years so those were cancelled a long time ago, and the phone lines were disconnected a few months ago as well.
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Old 08-11-2023
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They are usually sold to companies which employ an army of phone collectors,they have ways to find out where you live ,they will call your workplace and leave message,they will call your neighbors,since they did not pay much for these balances,anything they can get is better than nothing.

How do you know it has not been turned over to collection agency or sold off?
Those outfits which.
buy bad debts pay very little for them,some can be years old,they dont care about what the law said,they just harrass you ,keep calling and calling until you agree to send them something.
In your case,you said they are corporations and mailbox/addresses are no longer active,then dont worry about it.
$50k is a lot of money,I am glad I am not your creditor/lender

Quote:
Originally Posted by amzrocket View Post
My concern is that it's been 6 months and the debt hasn't been sold off/referred to a collection agency yet. If it goes to a collection agency I don't care, these companies are dead and all the associated phone numbers/mailboxes/etc have been terminated. It's also a corporation's debt, not a personal debt (and the accounts were created prior the whole identity verification thing, even if you do identity verification w/ your real ID I don't think you're agreeing to be personally liable for any debts incurred by the seller account).
how could they contact you if all your contacts no longer exist?
they do not have your AMZN emails and collection agencies know better than to collect via emails,waste of time.
If I follow this thread,you sold $50k worth of goods,and you got suspended and AMZN refunded $50k to your buyers out of its own pocket and you get to keep the $50k?
so what is your worry?they cant find you as all the business entities you set up no longer exist,mail boxes etc.

Been about 6 months since the last Amazon email about it, and haven't heard anything since then. No emails from any kind of debt collector or the like.

I find this unusual since usually debt gets referred to a collection agency fairly quick after the company realizes that it's not going to be paid. Granted, a deadbeat Amazon seller is most likely a company that has no money to pay so it's probably not worth expending a lot of resources to try to collect on it, but I would expect SOME kind of contact by now to attempt to collect it.

The mailboxes for these companies haven't been paid for in years so those were cancelled a long time ago, and the phone lines were disconnected a few months ago as well.
---------
after 6 months,AMZN is not going to keep beating a dead horse .
If it were turned over to collection agencies,AMZN did not turn over your email address,so collection agency has to rely on its own resources and it sounds like a lost cause,now way to contact anyone.

the bank account and credit card you closed,whose name are they under,you or company name?
email add changes all the time,we are not AMZN,you seem to flipflop whether you are liable or not,best is to seek legal help.You can also go to AMZN seller forum and see if any info is helpful to your case

Quote:
Originally Posted by rsot View Post
corporation debt is usually handled differently than personal debt - not the same way with phone calls and harassing tactics from what i have read
worse,a company can engage a law firm to pursue the case !

But OP said he has closed these companies,closed bank accounts and removed credit cards,these companies no longer exist and their mail box addresses are no longer valid.so?
now whose name is on the bank account and the credit cards?
and how did he register these companies,there must be a human being behind it,?
He also said others have used email to try to collect from him,so it sounds like he owed more than just AMZN?

Last edited by TGMT²; 10-01-2023 at 11:19 PM. Reason: double posting
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Default Re: Does Amazon try to collect negative seller account balances?

Quote:
Originally Posted by agent006140 View Post
They are usually sold to companies which employ an army of phone collectors,they have ways to find out where you live ,they will call your workplace and leave message,they will call your neighbors,since they did not pay much for these balances,anything they can get is better than nothing.
My concern is that it's been 6 months and the debt hasn't been sold off/referred to a collection agency yet. If it goes to a collection agency I don't care, these companies are dead and all the associated phone numbers/mailboxes/etc have been terminated. It's also a corporation's debt, not a personal debt (and the accounts were created prior the whole identity verification thing, even if you do identity verification w/ your real ID I don't think you're agreeing to be personally liable for any debts incurred by the seller account).
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Old 08-11-2023
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Default Re: Does Amazon try to collect negative seller account balances?

It will be sold off as junk debt to a debt collection agency as its against federal law to carry unrecoverable debt on the books and write it off after 90 days, that's generally when its sold off.
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Default Re: Does Amazon try to collect negative seller account balances?

Quote:
Originally Posted by agent006140 View Post
How do you know it has not been turned over to collection agency or sold off?
Those outfits which.
buy bad debts pay very little for them,some can be years old,they dont care about what the law said,they just harrass you ,keep calling and calling until you agree to send them something.
In your case,you said they are corporations and mailbox/addresses are no longer active,then dont worry about it.
$50k is a lot of money,I am glad I am not your creditor/lender
Because there haven't been any emails from any collection agency. Generally collection agencies try to bug you through any means possible, and considering email is free and easy to send would almost definitely be an avenue they'd try to contact with.

The creditor is Amazon as it's an Amazon seller account with a negative balance. I'm sure the amounts they lose to deadbeat sellers is offset by the amount they steal from suspended sellers. (Which btw, they stole a few thousand dollars from me when they suspended the account which they refused to disburse, even when I contacted that payments email after 90 days they didn't even respond to my email. Then they decided to refund every order that account ever sold which is why the balance is negative).

Last edited by amzrocket; 08-11-2023 at 10:36 PM.
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Old 08-12-2023
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Default Re: Does Amazon try to collect negative seller account balances?

corporation debt is usually handled differently than personal debt - not the same way with phone calls and harassing tactics from what i have read
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Old 08-12-2023
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Default Re: Does Amazon try to collect negative seller account balances?

Yes, the account sold a bunch of stuff over the course of many months, so most of that was paid out to my bank account. Months later Amazon refunded all the buyers (at least thats what it says in seller central, I have no way of knowing for sure if buyers actually received a refund or not). As soon as I saw that happen I cancelled the credit card and closed the bank account, as credit cards you're always personally liable for, and even though the bank account didn't have much in it, it doesn't mean Amazon won't keep trying to hit it and get you a bunch of NSF fees.

Also, why do you say that Amazon wouldn't include email addresses as part of offloading the debt to a collection agency? Wouldn't the collection agency want as much information as possible as part of the deal? And I've had other collection agencies send emails regarding debt. There's no reason for them not to, even if it's relatively ineffective, the cost of sending bulk emails is minimal.

Just because the corporation's dead doesn't guarantee it's over. They can always try to hold you personally liable for it. My concern is that maybe the account hasn't been turned over to a collection agency because they're planning some kind of litigation.
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Default Re: Does Amazon try to collect negative seller account balances?

The bank accounts were under my name.

Anyway, I'm not trying to speculate on what may or may not happen here, but I'm more interested in seeing if anyone else has had a seller account with a deficit that was never paid, and how Amazon tried to collect (or if they didn't try to collect, how long it's been since there was last contact from them).
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Old 08-13-2023
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Default Re: Does Amazon try to collect negative seller account balances?

Quote:
Originally Posted by agent006140 View Post
worse,a company can engage a law firm to pursue the case !
that's right - unless company goes under bankruptcy protection hah...
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Old 08-14-2023
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Default Re: Does Amazon try to collect negative seller account balances?

Quote:
Originally Posted by amzrocket View Post
The bank accounts were under my name.

Anyway, I'm not trying to speculate on what may or may not happen here, but I'm more interested in seeing if anyone else has had a seller account with a deficit that was never paid, and how Amazon tried to collect (or if they didn't try to collect, how long it's been since there was last contact from them).
They will employ an external company to try to recover the funds

They will share all the account details with that company in order to try to track down the owner of the accounts.
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Old 08-14-2023
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Default Re: Does Amazon try to collect negative seller account balances?

Quote:
Originally Posted by JamesNorth101 View Post
They will employ an external company to try to recover the funds

They will share all the account details with that company in order to try to track down the owner of the accounts.
Do you know which company they use for this, and how long after the account is in a deficit before they turn things over?
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Old 08-14-2023
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Default Re: Does Amazon try to collect negative seller account balances?

Yes, they collect debt and they do it aggressively.

Please pay them what you owe.
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