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Hello! I have posted on two other forums, but I figured out that asking as many people as possible could only help.
Two weeks ago I was gambling and lost control. I gambled away all of my savings (I have already spoken with GamCare about that). On top of that, PayPal (via Direct Debit) somehow managed to debit me several thousand pounds more than I had in my bank account. They have made a few attempts to take the money, and my PayPal balance is currently negative. From what I have read, I assume that they are going to give me 90 days (which have already begun) before they pass on the 'debt' to a DCA.
1. Is what PayPal did legal? I managed to find other similar cases, such as an article about a man who managed to deposit £150k the same way, which is simply outrageous! There is also a similar thread on this forum from last year, but no one has replied there.
2. If it is not legal, how could I dispute this? Obviously, I do not to want to pay something I am not legally compelled to. I have already raised a formal complaint with PP, and I am willing to complain to the Financial Ombudsman.
3. If it is legal, what would the best way to sort it out be? I do not want to deal with any DCAs, but paying back that amount of money in 3 months is impossible. It seems that I will be unlikely to reach an agreement with PayPal themselves.
On the one hand, from what I have read online, the consensus is that I should simply ignore both PP, which are an American company based in Luxembourg and have no legal authority in the UK, as well as any DCA, given that they are not bailiffs and cannot do anything, unless they send me a letter of claim (i.e. try to take me to court), which—according to what I was told—has never happened (yet?). In addition, I was informed that ignoring the debt collectors (who do not own the debt) would not have any effects on my credit score and that PP/the DCAs would not be able to file a CCJ against me.
On the other hand, I am slightly uncertain. If I am legally liable for the 'debt', PayPal should somehow be able to find a way to take me to court—perhaps they do not bother because the amount is insignificant to them? Or are they (and the DCAs) truly powerless? In addition, I heard of some post-Brexit changes, which provide PP with more legal authority, but from what I understood, that does not concern me as I have not taken a 'PayPal Credit' (this is what I was told: 'PayPal do not report activity to your credit file, unless its PayPal credit you are using, which this is not.').
Finally, I have contacted Citizens Advice, and I have an appointment with one of their debt advisors for next week.
Thank you!
Two weeks ago I was gambling and lost control. I gambled away all of my savings (I have already spoken with GamCare about that). On top of that, PayPal (via Direct Debit) somehow managed to debit me several thousand pounds more than I had in my bank account. They have made a few attempts to take the money, and my PayPal balance is currently negative. From what I have read, I assume that they are going to give me 90 days (which have already begun) before they pass on the 'debt' to a DCA.
1. Is what PayPal did legal? I managed to find other similar cases, such as an article about a man who managed to deposit £150k the same way, which is simply outrageous! There is also a similar thread on this forum from last year, but no one has replied there.
2. If it is not legal, how could I dispute this? Obviously, I do not to want to pay something I am not legally compelled to. I have already raised a formal complaint with PP, and I am willing to complain to the Financial Ombudsman.
3. If it is legal, what would the best way to sort it out be? I do not want to deal with any DCAs, but paying back that amount of money in 3 months is impossible. It seems that I will be unlikely to reach an agreement with PayPal themselves.
On the one hand, from what I have read online, the consensus is that I should simply ignore both PP, which are an American company based in Luxembourg and have no legal authority in the UK, as well as any DCA, given that they are not bailiffs and cannot do anything, unless they send me a letter of claim (i.e. try to take me to court), which—according to what I was told—has never happened (yet?). In addition, I was informed that ignoring the debt collectors (who do not own the debt) would not have any effects on my credit score and that PP/the DCAs would not be able to file a CCJ against me.
On the other hand, I am slightly uncertain. If I am legally liable for the 'debt', PayPal should somehow be able to find a way to take me to court—perhaps they do not bother because the amount is insignificant to them? Or are they (and the DCAs) truly powerless? In addition, I heard of some post-Brexit changes, which provide PP with more legal authority, but from what I understood, that does not concern me as I have not taken a 'PayPal Credit' (this is what I was told: 'PayPal do not report activity to your credit file, unless its PayPal credit you are using, which this is not.').
Finally, I have contacted Citizens Advice, and I have an appointment with one of their debt advisors for next week.
Thank you!
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