Can Paypal effect your credit?

[liveforthefunk]

Ill summarize

-I sold a watch i no longer wore on Ebay
-I was paid via Paypal
-Three weeks later i receive a "item not as described" dispute and the buyer is claiming the watch is a fake, when it clearly is not. I tell him to send the watch back and ill return his money.
- I never receive the watch, he posts up a fake tracking number saying he sent it back, and paypal refunds his money


Now the watch is gone, PLUS my paypal account is -$6900.

Fast forward 4 months to now, and i have creditors calling me telling me i need to put money into my paypal account so i no longer have a negative balance.

At this point, im fine with losing the watch, lesson learned. But id rather NOT have to put another $6900 into my account. Theres no way i want to be down $13000 after this. I dont want to get involved with the police or anything like that because the guy was just a scammer, i got scammed, and they'll never find him. Its just too much work.

Can i get away without transferring the money into my paypal account without it effecting my credit?

thanks!

 

[bcneil]

I had a similar thing happend to me about 6 years ago.
I am a Canucks season ticket holder and sold about 5 pairs to a guy off ebay.
Think it was $1300 or around there.

Sent them to the confirmed buyers address.

Couple months later paypal finds out the buyers used a fake mastercard, and I am on the hook.

Now since they are the ones who let the buyer register a fake card on their service, how it's my problem, I have no idea.

I got some nasty letters and whatnot. That I ignored.
I figured I followed their instructions exactly in sending the tickets to the confirmed address of a member in good standing with them.
With postal tracking and the works.
The fact that they don't check out people registering credit cards on their service in not my problem, and I am certainly not paying for it.

My credit rating has not been effected, and they seem to have given up bothering me. However I am banned from their service

 

[liveforthefunk]

Im not worried about ever being able to use their system again because after this nasty experience i dont ever plan to. However i noticed that the debt has not been sold to a credit agency yet because i transfered $1000 to the creditors account to see what would happen and to get the creditors to stop hounding me for a while. The $1000 was then transfered into my paypal account. Im still very young and i assume will eventually need a loan. Im not exactly strapped for cash at the moment, but you never know when it all might go down the shitter.

Is there anyway to to check for sure if this has impacted my credit? Should i just buy a copy of my credit report(if this is even possible)?


Thanks for your help guys

 

[FunSugarDaddy]

Im not worried about ever being able to use their system again because after this nasty experience i dont ever plan to. However i noticed that the debt has not been sold to a credit agency yet because i transfered $1000 to the creditors account to see what would happen and to get the creditors to stop hounding me for a while. The $1000 was then transfered into my paypal account. Im still very young and i assume will eventually need a loan. Im not exactly strapped for cash at the moment, but you never know when it all might go down the shitter.

Is there anyway to to check for sure if this has impacted my credit? Should i just buy a copy of my credit report(if this is even possible)?


Thanks for your help guys

The answer to the last part is a define yes. Either Equifax or Transunion can send you a credit check. On-line it cost about $20 and if you want a hard copy and send the required info, it's free. FWIW, I personally run a credit check on myself about once a year to ensure everything is in good order, it's well worth the money. Also if you disagree with someone's debt posting, you have the write to provide a written response. Not to sure how companies respond to this, but I know you can do it. Best thing to do is check your rating ASAP, it may even be high enough that this doesn't affect you as much as you think, since the vast majority of loans are secured either via a mortgage, or a vehicle or whatever else you're buying.

 

[Thatotherguy]

OK, first off:

Best thing to do is check your rating ASAP, it may even be high enough that this doesn't affect you as much as you think,

Hooray! Somebody in this thread correctly used "affect" instead of incorrectly using "effect!" Sorry, I know it's an easy mistake to make, but people saying (writing actually) effect when they should have used affect is a pet peeve of mine, and it's nice to see somebody get it right when everyone else was getting it wrong.

Also if you disagree with someone's debt posting, you have the write to provide a written response.

But I'm afraid, FunSugarDaddy, that you have disappointed me here. I believe you mean "right" rather than "write." I'll admit that in this case, since you were writing about a written response, it's somewhat understandable that you might accidentally write "write" when you meant to write "right."

Not to sure how companies respond to this, but I know you can do it.

Honestly, if you write something on your bureau in response to a debt or collection item, companies usually think that you're the type of person who makes excuses and tries to get out of paying their debts. That's not a good thing for a company to think about you if you're trying to get credit from them. You certainly have the right to provide a written response, but unless you've got a really fantastic reason for not paying the debt (and yes, if you've got a really good reason, the company you're trying to get credit from may take it into account), I wouldn't bother.

 

[Thatotherguy]

I think you meant "write to your bureau", not "on". Sorry, but that's a pet peeve of mine when people make simple errors such as this and not being able to type what they were thinking.

Damn! You bastard! How dare you correct me about a minor grammatical error when I'm in the middle of correcting other people about other minor grammatical errors! LOL!

 

[FunSugarDaddy]

Honestly, if you write something on your bureau in response to a debt or collection item, companies usually think that you're the type of person who makes excuses and tries to get out of paying their debts. That's not a good thing for a company to think about you if you're trying to get credit from them. You certainly have the right to provide a written response, but unless you've got a really fantastic reason for not paying the debt (and yes, if you've got a really good reason, the company you're trying to get credit from may take it into account), I wouldn't bother.

I believe that's speculation.

How else do you respond to those companies who simply may have delivered shotty service and/or charged too much for what they promised, or a host of honest disputes?

I believe lenders would be looking for a track record of some kind to determine if "you're the type of person who makes excusses" but I must admit, I've never contacted either of these companies to enquire about this, and if I were in the shoes of the original poster, that's what I would likely do if this debt did end up showing on my credit rating.

 

[HB40]

Okay, I'm sure Thatotherguy will be disappointed again, but he must be busy editing another thread so I'll lend a hand here.

I believe that's speculation.

How else do you respond to those companies who simply may have delivered shotty service and/or charged too much for what they promised, or a host of honest disputes?

I believe you meant shoddy, but if you were going for shitty you just missed the key, they are awfully close together so that one can be overlooked.

I believe lenders would be looking for a track record of some kind to determine if "you're the type of person who makes excusses"

excusses, there's no excuse for that one, Thatotherguy used it in a post just above and had it right.

but I must admit, I've never contacted either of these companies to enquire about this, and if I were in the shoes of the original poster, that's what I would likely do if this debt did end up showing on my credit rating.

This one is a little more tricky, although inquire is the proper word here, it is accepted vernacular for our somewhat illiterate country, kind of like irregardless...regardless means exactly the same thing, irregardless of the usage.
BTW, my biggest pet peeve word of them all.

 

[Thatotherguy]

I believe that's speculation.

Yes, but it's from the point of view of somebody who has been in the retail banking industry for 10+ years (me!).

How else do you respond to those companies who simply may have delivered shotty service and/or charged too much for what they promised, or a host of honest disputes?

You take legal action. Or you take it to the media. Or you threaten to do either unless they remove the item from your credit bureau.

If you really do have a good explanation, by all means get Equifax and Transunion to put in on your bureau, but be prepared to go into more detail about it with anyone you want to get credit with, and be prepared to provide proof of your explanation. If your explanation is something along the lines of: "it was a joint account and my girlfriend ran it up and then ran out on me," then don't bother, because that's not a good excuse.

Okay, I'm sure Thatotherguy will be disappointed again, but he must be busy editing another thread so I'll lend a hand here.

Thanks for the assist! I think we've got the makings of a pretty impressive Grammar Police Force going on here!

This one is a little more tricky, although inquire is the proper word here, it is accepted vernacular for our somewhat illiterate country, kind of like irregardless...regardless means exactly the same thing, irregardless of the usage.
BTW, my biggest pet peeve word of them all.

Yes, unfortunately we have to make allowances for the accepted vernacular.
I'm with you on irregardless, though. I mean, doesn't that just mean regardful? I hate it when people say that...

 

[Lady Companion]

Paypal plays by their own rules

I would call up paypal (expect to be on hold for an hour or 2) and explain the situation. If you haven't received the watch back, the tracking number will show that, and you can prove you didn't get it back. You may have to bite the bullet for the watch loss (though I'm sure that can be fought).....but if they didn't send it back, there is no way you should have to pay for it twice.

No, it won't affect your credit rating, but they have been known to do some dodgy things - like withdraw the funds out of your linked bank account. You may want to close down your account linked with paypal, and just open up another.

It's a huge hasstle, and they are no longer a user friendly processor. However, I would definatley call and email them to share your side of the story. They may even put the payment back into your account.


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[liveforthefunk]

No, it won't affect your credit rating, but they have been known to do some dodgy things - like withdraw the funds out of your linked bank account. You may want to close down your account linked with paypal, and just open up another.

Ive already done this, and ive changed my credit cards linked to the paypal account as well. Thanks!

 

[liveforthefunk]

Good luck man. Paypal is an easy to use service with a "hard to resolve" problem team. It just plain sucks and be prepared for a nightmare on your hands and alot of time.

I'm going to do some more research and see if it does affect my credit or not. If it doesn't, then a lost watch and the inability to use paypal ever again is well worth it. If it does, then ill try to fight it, and if it becomes too much of a hassle ill just suck it up and pay the damn money.

I'm pretty sure that i have good credit though because to this day I have not been declined for any type of credit(credit cards, margin trading accounts, etc). Which is odd, because im only 20. Perhaps waking up on my 18th birthday and applying for a credit card was the best move ive ever made haha. But then again, im not really applying for Centurion cards or anything...just yet anyway ha!

Thanks for your help though guys!