just got a letter from NCO......

[ericyjh85]

in the letter, they claim that i owe them $153.68 and that they will start to call me if i don't repay them in 10 days.
I know that they are a collecting agency and its about my negative balance in my PayPal account which is like 6 months ago.
I don't plan on paying them back, since I was the victim of fraud on Paypal. I sold virtual items online and the buyer decided to do a chargeback on their Credit card.
I am just wondering if i don't pay them, can they take me to court? and can i get a record on my Credit report which will affect my future loans and stuff like that?

I am only 20 years old and I don't want to have a criminal record for $150 bucks. Thanks for reading and any helpful suggestion will be greatly appreciated.

ps. I am from Canada

[jamied66]

If it was fraud, do you have proof? If you do then it's something you need to report and work with paypal to remedy.

Did your first letter from NCO have the "mini-miranda" in it somewhere and "give you 30 days" to disppute the validity of the debt?

Your (probably) best course of action would be to send NCO a Demand for Validation within 30 days of getting that letter.

Most importantly, calm down. You're not going to be put in jail. Research your rights and the law. A great resource is [url]www.creditboards.com[/url].