Can PayPal come after me for unpaid payments if my bank account went negative?

UK Bankruptcy Law Forum
1

I made 6 payments through PayPal that added up to £9000 (3x2000 and 3x1000). Everything seemed fine at first, but there weren’t enough funds in my bank account to cover it. I woke up to find PayPal charged my bank 3x2000, putting my account £6000 in the negative, and my bank added it back since I don’t have an overdraft. It showed as unpaid items and I know my bank will charge a fee. Will PayPal come after me for this money? What are my rights? I’m worried they might send debt collectors after me or damage my credit rating.

2

That sounds like a mess! If PayPal can’t get the money from your bank, they might try to take it from your PayPal balance or even send it to a collections agency. If they do, it could hurt your credit, unfortunately.

3

@Haru
I’m really worried about that. I didn’t even realize what was going on until it was too late. Ugh.

4

From what I understand, PayPal could definitely try to recover the money if your account is negative. If they can’t get it from your PayPal balance, they might go after your bank or even send it to collections. :grimacing:

5

@Keagan
I really hope it doesn’t go that far. I moved the money out of my account to avoid this, but it still went through from PayPal.

6

I had a similar issue before, and PayPal did come after me for the balance. They’re pretty serious about getting their money back, but you should talk to them and explain the situation. Maybe you can avoid the worst of it.

7

@Page
Thanks for the tip. I guess I’ll have to explain everything to them and hope they’re understanding.

8

Definitely reach out to PayPal ASAP! They’re usually more flexible if you contact them early. If you just ignore it, it could end up worse. :grimacing:

9

Harley said:
Definitely reach out to PayPal ASAP! They’re usually more flexible if you contact them early. If you just ignore it, it could end up worse. :grimacing:

Yeah, I guess it’s better to deal with it now than later. Thanks for the advice!

10

PayPal has the right to try and recover the money, but they won’t usually send debt collectors after one missed payment, unless things escalate. Still, I’d keep an eye on your credit score just in case.

11

@Morgan
Good point, I’ll check my credit score too. I don’t want it to get worse. :grimacing: