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PayPal – Debt to be passed on to Debt Collectors

soprano91 asked:

Hi guys,

Long time reader but decided to join the forum after getting myself into a stupid mess.

First thing’s first, I’m not looking for sympathy or lectures or anything because I know that I have made some stupid mistakes here, but long story short a gambling problem (which I am now actively tackling; closing all betting accounts/speaking to the helplines regularly etc) has led me to have a negative balance of £6k on my paypal account.

When I realised the seriousness of the situation (once I’d lost all everything in a ‘last chance’ effort to win my money back) I called my bank to ask them what would happen with these paypal payments. They said if I didn’t have the money they would reject the payments, great.

I then ring paypal to let them know that the bank will be rejecting the payments, to which they said that I will have 30-40 days to clear the debt. Now as you can probably already tell I’m in no position to be able to do this, and I (possibly foolishly) admitted that I will not be able to clear this debt in 30 – 40 days. They have told me that they will be passing on the debt to one of their external collections agencies to handle and that once it has been passed over, my paypal account will be suspended until it is cleared.

Now, I’m after some advice here – Given that they will pass the debt on (and I’ve been searching the forums for the last 4 hours on any similar topics), am I right in thinking I am in a position to challenge back once passed over with said DCA?
I know I will need to wait for official correspondence from the DCA, which probably won’t be until the new year, but I’ve decided that I want to be as prepped as possible, so that I can minimise any harassment and learn from any mistakes once and for all.

If there is any more info you guys need, or anything I have missed out please excuse me – my head is a little all over the place at the moment.

Thanks in advance!

Soprano

max2000 replied:

That’s a tricky one as you say so your self.

Gambling debts via Paypal.

I suppose Paypal has had to fork out to the Bookies.

So they are out of pocket, the debt is still unsecured and no goods have changed hands.

As you say wait and see, I wonder which DCA will pick this one up?

What is your current status as in employment?

I have a paypal account it comes in handy, but have never signed anything for it. 😮

williams2583 replied:

dont admit anything and wait for dca contact, then post

soprano91 replied:

So what do I do when they inevitably call me about paying back? Do I ignore the calls, wait for post from PayPal/DCA then start the 3 letter process?

williams2583 replied:

No contact by phone, by letter only. If they persist block their calls.

soprano91 replied:

Just to uodate on this thread, I have today received an email stating my balance has been transferred from GBP to EUR

“PayPal has made a transfer between the balances in your account for the following reason:

Our policy of converting all negative balances to E after 4 days

The following transfers were made: (Exact amounts)”

So now do I wait for DCA contact and start 3 letter process? I’m curious as to whether the DCA/Paypal can enforce the debt or knock on the door etc, as I’ve read some letters from other threads where the DCAs have threatened legal action (and with PDL’s/CC’s I know it’s different, I’m just not sure how PP works)??

oisin2010 replied:

Any update bud as I’m in similar position.

williams2583 replied:

ignore and wait

soprano91 replied:

I’ve had 1 letter from Avarto asking for payment, just simply stating they have been instructed to collect the debt.

Do I begin with letters or wait for a more threatening letter from them? I know they deal with all kinds of DC, so am wondering if they are acting on behalf of PP or have purchased the debt?

williams2583 replied:

Instructed to collect means they are AGENTS ONLY and can safely be ignored (or return to sender) as guess what they have no powers whatsoever so cant do sweet fa, nb they will send a follow up letter i guarantee (usually in 1 mth) and that one dont open just RTS

soprano91 replied:

Just an update, 1 letter since, various emails since too.

Once passed to Paypal what happens next?

williams2583 replied:

Carry on ignoring, will either pass back to PP or another dc or give up