Everything You Need to Know About PayPal Debt Collection

PayPal is one of the most popular payment websites online, with millions of users in each country. At some point, you might have to deal with PayPal debt collection on your account. If you have recurring payments linked to your PayPal account, it's very easy to fall into debt by mistake!

Regardless of the circumstances, ignoring the debt could result in garnished wages or court summons. However, it can be difficult to negotiate with debt collectors, even from a trusted company like PayPal. No matter how long an agency has been trying to collect, DoNotPay can stop the problem permanently!

What is PayPal Debt Collection?

Any time that your PayPal balance dips into the negative, your account is considered "in debt". You can pull your balance out of the negative by transferring money directly from your bank account. You can also ask a friend or family to send you enough money to get you out of the red.

However, if you don't use your PayPal account often, it can be easy to overlook missed payments. Notices from PayPal can also sometimes be recognized as spam and sent directly to your inbox's trash folder.

Even so, PayPal gives you 90 days to pay back what you owe. If you fail to respond to PayPal within that time, they can hand over your debt to a collection agency.

When it comes to PayPal debt collectors, it's important to know your rights:

Debt Validation

According to the FDCPA, you have 30 days to request validation from a debt collection agency after its initial correspondence. You can ask for additional details verifying the legitimacy of the debt, as well as dispute the debt. If the collection agency does not comply, they can't pursue legal action over the debt.

Accurate Information

A PayPal collections agency must notify you both orally and in writing when attempting to collect your debt. The agency also cannot report the debt on your credit report unless it's 100% accurate.

Zero-Tolerance for Harassment and Threats

Debt collection agencies are not permitted to call you repeatedly or use obscene language. They also cannot threaten to have you arrested or sue you while the debt is being settled.

If PayPal's collection agency refuses to comply with any of these regulations, it is violating debt collection laws. This is more common than you think! In 2018 alone, 32 companies and individuals were banned from the industry due to unlawful debt collection practices.

How to Deal With PayPal Debt Collection by Yourself

If you're having financial difficulties, it's best to call PayPal directly and explain the situation. An associate may be able to help you set up a repayment plan before a debt collection agency is contacted.

Here is PayPal's contact information for:

If your debt has already been sent to a PayPal collection agency, you have a few options:

1. Attempt to reason with the debt collection agency. If it's your first phone call or letter, you may be able to work out a payment plan.

2. Write a letter to the collection agency. You can either ask for debt validation, dispute the debt, or demand that the agency ceases communication with you.

3. Unfair debt collection methods can stop many consumers from even attempting to fix the situation. If the agency has been harassing you, you can file a complaint to the Consumer Financial Protection Bureau.

However, you might find that stopping debt collectors isn't easy. For one thing, scammers will frequently pretend to be debt collectors to steal your personal information. This makes many consumers hesitant to pick up the phone in the first place!

Writing a letter by yourself takes time, and you might have difficulty explaining the situation. When you file a complaint with the CFBC, there's no guarantee that your issue will be addressed quickly.

How DoNotPay Gets Rid of PayPal Debt Collection

We understand that dealing with PayPal debt collectors can be scary and overwhelming. It might seem easier to ignore debt collection companies, especially if it's a big medical bill. However, doing so could get your assets seized and your wages garnished!

Here's how DoNotPay's stress-free debt collection service works:

1. Search “debt collection” on DoNotPay.

2. Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.

3. Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to the CFPB.

And that’s it! Once you choose the course of action you want to take, DoNotPay will handle the rest. We’ll deliver your request directly to the debt collectors via first-class mail, or file your complaint automatically with the CFPB so that they’re no longer able to use unfair debt collection practices.

You can also check out our other credit products, including Credit Limit Increase and Clean Credit Report!Why Use DoNoPay to Stop Paypal Debt Collection

Best of all, this product is:

• It’s quick to use. Just answer a few questions and you're done!
• It’s always straightforward. There are no extra hidden steps!
• And it’s 100% secure. You can always trust us with your debt details and other private information.

DoNotPay Stops Debt Collectors From Any Company

DoNotPay can negotiate with any collection agencies from all companies, big or small. Additionally, we can determine if those agencies have made debt collection violations before even writing the complaint!

DoNotPay Helps You Get Out of Debt Fast!

While DoNotPay is an expert at dealing with Paypal and other debt collectors, we also have numerous debt prevention services: These include:

• Help with bills
• Lowering your loan amounts
• Reducing property taxes

Need help with anything else? Feel free to browse DoNotPay's complete library of quick, useful solutions!