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Closed paypal account do I owe a negative balance?

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  • Aug 15th, 2012 9:48 am
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[OP]
Sr. Member
Sep 24, 2006
721 posts
24 upvotes

Closed paypal account do I owe a negative balance?

so none of this has happened yet, however I sold and shipped with tracking number and insurance (shipping label bought through paypal) a set of used speakers. I had used them the day before shipping so they were in 100% working condition. I sold them for 60+39 shipping so total 99$. After the buyer received them a few days later he sent me an email saying the left speaker is broken, the right one is crackling and the subwoofer is humming.

So i said try reconnecting all the cables i think the problem is on your end. He hasn't responded since and the 21 days since sale has passed so the hold on the paypal funds has expired and the fund have been transferred to my bank account. I subsequently read so many horror stories online about ebay/paypal that i deleted all my listings and sold stuff through kijiji then I deleted my CC/bank of paypal and closed the account. If the buyer now responds to my message and then files a dispute (he has apparently 45 days to do so under ebays buyer protection policy) what is going to happen?

I've heard of people getting negative balances? can this happen to me? I want to close of all ties after this has happened I am NEVER using paypal ever again. They facilitate fraud if this guy responds (as i've heard they always rule in favor of buyer).
30 replies
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Apr 13, 2009
3874 posts
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I've had a negative balance when a buyer tried to pull a scam on me. I shipped a laptop and the person said he never purchased it and it must've been fraud. Yet, he signed for it at the post office and I have a copy of his signature. :facepalm:

Long story short, Paypal sided with the scammer and left me with a negative $800 balance in my Paypal account. They threatened legal action against me because I refuse to pay back the money to Paypal. I told them to go ahead. They have never bothered me since. This was about 6 years ago. Just forget your current account and open up a new one. They can't do anything to get money from you unless you have pre-authorized payments from your bank account to Paypal, which I recommend you never do.
Deal Fanatic
May 25, 2005
6166 posts
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Both these claims will go to a collection agency and leave marks on your credit rating. It's simple Pay Pal says you own a debt and it's unpaid.
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Apr 13, 2009
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mysticalinfluence wrote:
Aug 10th, 2012 11:20 am
Both these claims will go to a collection agency and leave marks on your credit rating. It's simple Pay Pal says you own a debt and it's unpaid.
Wrong. They don't have your SIN number. They can't do jack isht. You don't even need to put in a correct address or phone number to open a Paypal account. I owe them from 6 years ago and my credit score is fine.
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Nov 19, 2010
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diggler649 wrote:
Aug 10th, 2012 11:49 am
Wrong. They don't have your SIN number. They can't do jack isht. You don't even need to put in a correct address or phone number to open a Paypal account. I owe them from 6 years ago and my credit score is fine.
Well that's because of your ultra high net worth-ness. How could you possibly get a bad credit score.
Deal Fanatic
May 25, 2005
6166 posts
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diggler649 wrote:
Aug 10th, 2012 11:49 am
Wrong. They don't have your SIN number. They can't do jack isht. You don't even need to put in a correct address or phone number to open a Paypal account. I owe them from 6 years ago and my credit score is fine.
You wrong they don't need your SIN to give you bad mark on your credit. You have you head up your butt if you think you can just not pay a debt and have it not show up on your rating. :facepalm:
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mysticalinfluence wrote:
Aug 10th, 2012 5:56 pm
You wrong they don't need your SIN to give you bad mark on your credit. You have you head up your butt if you think you can just not pay a debt and have it not show up on your rating. :facepalm:
I'm living proof, yo.
Sr. Member
May 29, 2012
743 posts
40 upvotes
MAPLE RIDGE
I don't like giving such advice, but in the event you do get a neg. balance, just walk away from it if it's a moderate amount, especially if it's just 100

Neg. balance has happened to some people I know but they've been fine. Without your SIN AND because they're US based, it's a little more difficult for them to go after you. From their perspective it may be too costly to go after you for such an amount.

I've heard of plenty of horror stories of buyers making fake claims to purposely claim their funds back for a free item. Some of those sellers just decided to walk away from the Paypal realm with negative balances in the 1000 - 2000 and not deal with it ever again. Now if they had your SIN AND they were in Canada then I wouldn't be saying this..
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Dec 7, 2009
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I don't think Paypal should even have the legislative right to report credit information to the bureaus in Canada, since I'm sure just about every dispute is rife with controversy over who is to blame. Paypal might feel vindicated by marking up someone's credit score, but that doesn't mean that they are the party in the right.

Doesn't anyone care about justice anymore? Are we really a society that just tells people to "pay their debts" regardless of the circumstance?
forthewinwin wrote:I don't like giving such advice, but in the event you do get a neg. balance, just walk away from it.
Why even hesitate, your advice is spot on. If someone disputes that you owe them money, the burden is on them to prove why you owe them, and this should take place before they have any ability to affect your credit score.
Check out caRpetbomBer's picks in this thread.
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Apr 13, 2009
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Paypal can go f#@k themselves with a porcupine covered in bear poo for all I care. I will never pay back my negative balance.
[OP]
Sr. Member
Sep 24, 2006
721 posts
24 upvotes
so the dude contacted me after a long two week silence. In his email HE admits to trying to modify the speakers i sold him by replacing an RCA plug (which he wrote in the email) so technically he has already altered the product. its august 12th, 45 days isnt up until august 31st... Should i delay answering for a few days or should i just reply back saying if you wanted to file a claim against me you should have done so before modifying the speakers. I sold you working speakers or something along those lines... or will paypal STILL side with the buyer even though he will be sending me back an altered product.

either way I have all my money in another account now, so worst comes to worse i'll have the paypal negative balance now of 99.17$ on a closed account...
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Jan 30, 2011
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staffpro wrote:
Aug 12th, 2012 8:41 pm
so the dude contacted me after a long two week silence. In his email HE admits to trying to modify the speakers i sold him by replacing an RCA plug (which he wrote in the email) so technically he has already altered the product. its august 12th, 45 days isnt up until august 31st... Should i delay answering for a few days or should i just reply back saying if you wanted to file a claim against me you should have done so before modifying the speakers. I sold you working speakers or something along those lines... or will paypal STILL side with the buyer even though he will be sending me back an altered product.

either way I have all my money in another account now, so worst comes to worse i'll have the paypal negative balance now of 99.17$ on a closed account...
Did he say he modified the speakers to fix them? or he modified the speaker and broke them?
Deal Addict
Mar 21, 2010
3320 posts
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staffpro wrote:
Aug 12th, 2012 8:41 pm
so the dude contacted me after a long two week silence. In his email HE admits to trying to modify the speakers i sold him by replacing an RCA plug (which he wrote in the email) so technically he has already altered the product. its august 12th, 45 days isnt up until august 31st... Should i delay answering for a few days or should i just reply back saying if you wanted to file a claim against me you should have done so before modifying the speakers. I sold you working speakers or something along those lines... or will paypal STILL side with the buyer even though he will be sending me back an altered product.

either way I have all my money in another account now, so worst comes to worse i'll have the paypal negative balance now of 99.17$ on a closed account...
Could always delay a few days, then send back some vague but helpful-sounding advice (e.g. I know the speakers were working when I mailed them to you, but you could try asking on X audio/music forum to see if anyone knows how to fix them back, I'm sure it isn't too hard), see if you can get him running around a little and maybe forget about trying to get his money back for the moment. I don't think you should say "you altered them so don't even bother trying to start a claim" because you don't want to remind him/bring it to the forefront. I mean if he's waited 2 weeks for no real reason, he's clearly not urgently trying to get a refund out of you otherwise he'd have been on you from the start and trying to show that you were the one not responding/being slow/avoiding the issue. Maybe he doesn't know that much about ebay/paypal and doesn't know that they are likely to side with him if he complains, so don't give him any ideas.
Deal Addict
Mar 18, 2009
1098 posts
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Renous
Paypal sucks, and this is why ^^^

It doesn't matter what the buyer says, how many pieces of paper he signed as proof of receipt of the item, all he has to do is a chargeback on his credit card, and Paypal is screwed. They can even agree with the seller and it doesn't matter, Paypal has a negative balance, so therefore, the seller has a negative balance.

All that said, the answer to your question is 'No' Paypal can't report anything to your credit report. They will say they can, they can send your 'account' (it's not really an account - Paypal is a middleman) to a collection agency, but it can't legally be reported on your credit report. This is also why Paypal has a relatively new policy that you must link your bank account to your Paypal account. So, if you sell a pair of speakers, the buyer does a chargeback, a negative balance is created, all Paypal has to do is reach into the bank account and recover the funds. This is especially scary because most bank accounts have overdraft protection, so you don't even need to have the total amount, and Paypal doesn't care. They will leave you with a negative in your bank account and pray you don't bounce any cheques.

Follow the few and ditch Paypal. They will eventually screw you over
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