Do paypal come after you for negative funds?

danjohnson · #1 08-26-2010

i recently had my paypal account shut down, and even though there are (a small amount of) funds in there for now that im hoping to get back at the end of the 180 day period, what happens if a chargeback or refund is issued for a large amount and the account goes into negative credit? do paypal contact my bank and ask for the money? or even simply just take it? i wont be able to use that account for ebay or paypal anymore, so i'll probably just shut it down and move on to a new account, but what if negative funds arent resolved? does the bank then come after me?

ive seen a couple of foreign posts about this, but what are the UK rules?

GreenBean · #2 08-26-2010

HaH paypal & rules in the same sentence does not exist. LOL.

paypal will just 'take' the money any way it can.

Now here's the problem for you to consider. If paypal get money from the bank account and that bank account goes into a negative balance, then the bank will hit you with over-drawn fees & it will be costly for you.
Cancel the direct debit with the bank. Make sure you tell the bank you no longer allow paypal access to your bank account.

danjohnson · #3 08-26-2010

will do! If i shut the bank account down, and paypal are still knocking at their door, will the bank let me open a new account? (seems unlikely) and will this have a negetive effect on my credit rating and other important things?

thanks for the quick reply by the way!

GreenBean · #4 08-26-2010

Is it a High Street bank? If it is, make an appointment & go to the branch.
Advise the staffer you see that you want to remove the direct debit because paypal are unjustly taking fees from you. (Most of the banks have been told this by other customers). Tell the bank you really want to stay with them & think that it's best they cancel the DD or could they offer another account?!? Follow their guide. Your credit rating is not affected as a bad mark. Just a note gets made on your report but there are seldom consequences. (Unless you have major financial problems which we are not discussing)

danjohnson · #5 08-26-2010

thanks for the help! hopefully it wont come to this and i'll actually get some money back from them in 6 months, but i needed to know what the policy was just in case.

any further comments or experiences from anyone who has dealt with this issue would be appreciated!

rsot · #6 08-26-2010

Closing the account - if needed - with paypal knocking will NOT affect your relationship with the bank. The system simply says No to the request. Open up others and different accounts.

#7 08-26-2010

Be aware if the paypal is linked to a genuine address, if the account goes negative and they cant recoup funds from the bank, they well send an half arsed letter saying the bailiffs are coming, easy way round it, change the registered address, after 180 days your funds if there are any left will still be eligible for withdrawal, ps its imposible to get a paypal account back after 180 days, you get the parting ways email or at least used to!

vokonta · #8 08-26-2010

As far as i know, in the UK, paypal cannot touch your credit report if you go into negative cos your account with them isnt governed by the consumer credit act. They can hound you for the money but a default can't be registered without a successful court action.

danjohnson · #9 08-26-2010

thanks for that advice. just logged into paypal and changed the registered address, but cant change the billing address as it has my card linked to it, and i cant edit any of the card details while my account is limited. maybe im stuck. i think i should be okay though, havent had any refunds or chargebacks in a while, so i'll just ride it out, and if im lucky there'll even be some money left in there at the end of it all! ...next stop: stealth account!

danjohnson · #10 08-26-2010

Quote:

Originally Posted by vokonta

paypal cannot touch your credit report if you go into negative cos your account with them isnt governed by the consumer credit act.

im sure paypal cant affect my credit score, but if i close a bank account with outstanding debts, or debts are coming in after the account has shut, the bank can take this more seriously than paypal ever could right? im hoping that it wouldnt affect anything i do in the future

vokonta · #11 08-26-2010

Yeah, your bank chase you and mess up your credit report which is why you should cancel your dd so things dont get messy