Paypal negative balance - do they go to court or mark on credit file?

Posted 4th Feb 2009
I've been the victim of a buyer breaking my item and then claiming it wasn't as advertised and, surprise suprise paypal found in their favour. My account already had a small credit balance balance but after the refund is about £40 debit.

I know that paypal escalate this to debt collectors but does anyone, from experience, know if they go further and take it to court and/or does it effect your credit rating? To be honest I feel like taking them to court - legally, what grounds do they have for taking my money as private sales aren't covered by distance selling etc.

I feel so annoyed with this that I am happy to never use ebay or paypal again and tell them and their debt agencies where to go. The only worry is that it could go on my credit record, which is not something I want, especially in the current economic climate.

Thanks for any advice.
Community Updates
right when your not phoning them up and talking to indians your emailing them and getting no logical responses i had the same problem with PP and the effing useless

as with any debt solution they will put ou into default with the debt agency and if you dont pay them theres 2 options

1) if the debt company bought your debt off PP THEY can take you to court and seek possession of goods or arrange payment scheme to pay weekly/monthly etc

2) they give the claim back to PP and they ether take court action (which you can appeal) or let it drag on and risk incurring more fees

in your case take note of EVERYTHING you have done i.e pm's/e-mails to the buyer screenshots of your advert (to proove you listed what you sold) and evidence of the "broken item" then YOU take THEM to court and as your taking time off work and spending your money claim for that back

whats the return policy on the item you were selling surly as a seller you take a little responsibility in the item if its been a few days and the item broke (not taking sides its just a nice thing to do) i know its silly to say now but you have proof this item was fully working and in one piece before it was sent (what was it by the way) all in all i think this seems a little unfair on your half, i hope this info helps or enlightens you a little ust dont let it lie keep complaining and open disputes if you have to (i personally would annoy the **** out of them till i get a result)

best of luck

Thanks for reply.

I've sold a load of stuff on ebay and have accepted all sorts of returns but in this case I am 100% sure that the damage was caused by incorrect usage by the buyer.

It is a monitor with a probe for listening to unborn babies heart and the probe clips onto the side of the unit when not in use. The seller claims this clip was broken but i checked everything before packaging and due to the nature of the box it couldn't break in transit. The instructions say you need to be careful when removing the probe and slide it to the side rather than just pulling it straight out. The seller obviously hasn't read this and as a result damaged it.

I think what I'll have to do is just push it as far as I can with paypal, drag it out as much as possible before no doubt end up paying. Then resolve never to use ebay or paypal again and advise as many people as I know to do the same. The thing that bugs me though is that surely it can't be legal for paypal to act as judge, jury and executioner and just take your money without any evidence.

Erm don't do that, it's fraud:?

And what they did wasn't:thinking:?
Thanks for all replies. Think I'll just stick to my plan of dragging out at as long as possible.

With regards to the t&c's I still wonder at the legality of withholding your money in what is essentially a 3rd party dispute! I obviously agreed to their t&c's (without reading) but they can't hold you to any that are illegal. And if it isn't illegal it bloody should be :x
If it's NCO its just a paypal subsidary not a proper debt collector.

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