Can PayPal hurt my credit history?

[lion33]

What is the name of your state? Michigan
I sold a $230 item on eBay and got paid through PayPal using instant transfer from a bank account. I shipped the item to the buyer’s confirmed address in North Carolina with no insurance because he didn’t want to pay for it. The buyer left me positive feedback a couple of days later and I transferred the funds in my PayPal account to my bank. More than a month later, PayPal put a temporary hold on the funds (i.e. gave me negative balance) because the funds used to pay for the auction were supposedly “unauthorized”. Four weeks later PayPal sends me an email that they decided to reverse the payment back to the buyer and I now owe them $230. My question is that if I don’t pay PayPal and they send my account to a collection agency, which they will, can they hurt my credit history or credit score? Thanks.

 

[cmorris]

If the collection agency reports it, it will definately ding your credit. If you have any credit cards, be aware of universal default. You will probably be ratejacked.

 

[lion33]

Thanks for replying. If PayPal and the collection agency don't have my social security number, how can they hurt my credit? This is money that was actually stolen from me with PayPals indirect assistance, can they still do that? Thanks.

 

[cmorris]

It's a misconception that they need your SSN to report. They "match" their information to your file. If they have your name and address, it will be a go.

 

[lion33]

Thanks for the info, I guess I'm stuck.

 

[marbol]

Thanks for the info, I guess I'm stuck.

You are not stuck. If someone reports erroneous information on your credit history you can sue, and collect statutory damages as well. You can sue them in small claims court in your county too. You do not have to prove damages since the awards are statutory.

Check out the FCRA and other related laws.

 

[janedoe23]

Checkout this website for more stories like yours

www.paypalsucks.com

 

[cmorris]

Marbol,

Paypal will have all of the paperwork necessary for a CA to report. It would not be in error. The problem is with PayPal and unless there is other pertinent information, the OP will have to pay--or suffer the consequences.

So, what could the OP sue for, a valid tradeline? NOTHING! Simply reporting this to the credit bureaus when the OP fails to pay is the order of things.

I doubt there is anything to hang PayPal with. There was a chargeback. OP now owes PayPal money. A judge would laugh at the ignorance of the OP if s/he sued.

At this stage of the game, there is nothing to sue for. If/when a CA gets ahold of it and reports, there is still nothing to sue for.