Personal Finance

Do PayPal Debts Appear On A Credit Report?

Penalty Box
Aug 11, 2005
4175 posts
1422 upvotes
My buddy sold a game account and the guy charged back which caused his account to go in the red. He ignored NCO calls and never paid back and it appeared under his credit when he checked a year later.
Deal Addict
User avatar
Sep 26, 2007
3960 posts
146 upvotes
SC
Check your credit report often then, good luck with this.
Member
Mar 31, 2010
380 posts
11 upvotes
GTA
Am I reading the title of this post correctly? :confused: ?? If this is a scam, OP why are you worried about your credit score?
Member
Dec 10, 2006
289 posts
3 upvotes
Jon Lai wrote: From Google and from experience, nothing appears on your credit report from Paypal/NCO. That said, I didn't owe them $8k... only a couple hundred
I can't comment about Paypal but trust me collection agencies can and do report to credit bureau's. i've requested the credit reports for many people and seen the collection agency debts listed with the credit bureau's.

But like many others have said the story is fishy simply because the OP isn't giving us the full story so I think people should stop trying to help him.
Deal Addict
Sep 1, 2005
1521 posts
491 upvotes
Vancouver
X360 wrote: I don't see how Paypal sucks here...

1) OPs is a seller... selling a service $8000 to a buyer through Paypal...

2) Buyer paid OPs $8000 through Paypal

3) OPs withdraw $8000 from Paypal

4) Buyer not satisfy with the service and submit a Paypal dispute

5) Paypal dispute protocol will let OPs seller a chance to response to the dispute... However, OPs went away and not response to the dispute...

6) As Paypal dispute protocol, after certain time if one party not response to the dispute... Paypal will credit the money back to the other party (buyer)...

7) As the result, OPs Paypal account now negative -$8000

Nothing wrong with Paypal in this case... This is OPs problem not response to his buyer... Just imagine, if you buy a product from anyone and they don't bother to response to you after sold the product to you if there is a problem... How do you feel?


Since this is the OPs fault... He should refund $8000 that he withdraw from Paypal then go after/begging the buyer to give him the money for his service...
+1

OP says this is all non-factual and assumptions, but from the info provided in the thread this is EXACTLY what happened. Although #4 is the point in question, but this is the claim made by the US person, and the avoidance of the complete story by the OP seems to back this point up.
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2968 upvotes
rocking23nf wrote: Give me a break, I was 19, in school, student loans had run out, what do you do. Summer job making 5 bucks an hour didnt go far.
Did somebody put a gun to your head to run up a big cell phone bill or otherwise cause you to mismanage your money? Didn't think so. How about taking some personal responsibility for your actions rather than stiffing others?

What goes around comes around.
Deal Guru
May 29, 2006
10163 posts
2735 upvotes
Well it may be hard for your comprehend since your such a better person and better member of society. But when I was 19, I was part of the group of kids that got lured into contracts without knowing what they were, only to find out theres no way out a few months later.


Im 32 now, and I pay my bills and taxes, so your comments mean nothing to me. Yes some of those bills are my fault, but the cell phone was completly misleading at the time, I was told there was no contract, I could cancel at any time, only to find out theres hundreds in fees to cancel early
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2968 upvotes
rocking23nf wrote: Well it may be hard for your comprehend since your such a better person and better member of society. But when I was 19, I was part of the group of kids that got lured into contracts without knowing what they were, only to find out theres no way out a few months later.


Im 32 now, and I pay my bills and taxes, so your comments mean nothing to me. Yes some of those bills are my fault, but the cell phone was completly misleading at the time, I was told there was no contract, I could cancel at any time, only to find out theres hundreds in fees to cancel early
Yup, it's always somebody else's fault....
Newbie
Mar 1, 2010
14 posts
Alberta
why didn't you send whatever you were sending by registered mail?
Deal Addict
Jun 7, 2005
4368 posts
205 upvotes
Shouldn't you be trying to go after the person to get your $8k to paypal?

Paypal is just the middle man in this case.

You can't just ignore a $8k debt and hope it goes away.


....wait...so the person sent you $8k thru paypal, you withdrew the $8k, then he had the payment revoked? So you have the $8k in cash to pay back paypal, right?
Newbie
Oct 19, 2009
40 posts
1 upvote
Thornhill
No one is dumb enough to Chargeback $8000, especially with the fees associated with the transactions.
Deal Addict
Apr 27, 2005
2088 posts
1109 upvotes
Montreal
X360 wrote: Since this is the OPs fault... He should refund $8000 that he withdraw from Paypal then go after/begging the buyer to give him the money for his service...
voodoo401 wrote: Don't think the op is going to tell (probably sold a illegal "service" wink,wink) :twisted:
slavka012 wrote: OP, just hint, what kind of service WORTH 8K people buy over the internet and pay for using PayPal?
qster wrote: Return the money you owe, minus the Paypal fees.

Lastly, who goes on vacation without checking their email?
kaycee8877 wrote: +1

OP says this is all non-factual and assumptions, but from the info provided in the thread this is EXACTLY what happened. Although #4 is the point in question, but this is the claim made by the US person, and the avoidance of the complete story by the OP seems to back this point up.
Conquistador wrote: Did somebody put a gun to your head to run up a big cell phone bill or otherwise cause you to mismanage your money? Didn't think so. How about taking some personal responsibility for your actions rather than stiffing others?

What goes around comes around.
y2ktrent wrote: Come on guys is obvious OP is trolling.
DebbieQ wrote: why didn't you send whatever you were sending by registered mail?
Let me preface this by stating that I'm not responding the controversial aspects of this thread, nor do I condone when RFDers get personal in their responses to the point of attacking a fellow RFDer. RFD is meant for the communal sharing of information for the betterment of all of us, not for the demeaning or assailing of posters by people who might not fully understand topics being discussed.

This thread is not here to discuss the etiology of the OP's situation. It is here because he needs our help with specific concrete answers. Frankly, given his story, I'm inclined to believe him. One has only to check the forums at www.paypalsucks.com to see that this kind of experience is fairly common. His only mistake was that he used PayPal.

I have worked in e-commerce for many years and I have seen a lot of PayPal nightmares from merchants and individuals who are completely innocent. The only kind of person who can help the OP is someone with "factual and real-world" experience with PayPal effects on credit reports.

A "troll" is someone who posts inflammatory, extraneous, or off-topic messages in an online community. That being said, most of the responses above are off-topic and from people who have never had any such experience with PayPal or PayPal on a credit report, haven't even read the OP's posts in this thread, and are simply cluttering up a thread that could otherwise be very useful.

I for one would also like to know if PayPal debts appear on credit reports. Let's hear from those who have truly have relevant information to contribute.
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Deal Addict
User avatar
Sep 26, 2007
3960 posts
146 upvotes
SC
deal_king wrote: I for one would also like to know if PayPal debts appear on credit reports. Let's hear from those who have truly have relevant information to contribute.

Can PayPal Ruin My Credit Score?


No. PayPal does not report to credit reporting agencies. If you owe PayPal money for any reason (such as you have a negative balance), PayPal will attempt to collect the debt from you.

Depending on the amount that is owed, PayPal will do one of two things. First it will write the debt off as a business loss (PayPal does this for tax purposes). Or two, PayPal will sell your debt at a discount to a collection agency such as NCO Systems or IC Systems. Collection agencies have the ability -- but NOT ALWAYS THE RIGHT -- to insert negative information into your credit report that might make it more difficult for you to obtain credit and obtain favorable credit rates.

In short, yes. you'll have the right to dispute it with the credit bureau but you'll lose because you agreed to the terms and conditions created by paypal. In OP's case he failed to dispute meaning he might as well have gave the money back himself.
Sr. Member
May 8, 2008
837 posts
17 upvotes
S5 wrote: +1. Don't think anyone should help him until he gives us HIS SIDE of the full story.

Title is misleading as well, OP isn't out one red cent. He's up 8k for providing a mystery "service".
It seems like a bunch of you are just nosey and can't provide help even if you wanted. If he doesn't want to share the story, it's nobody's business, especially if it has no relevance. Even if he did share it, people on here would make assumptions and criticize him like you're doing now. He's just asking for advice on his credit rating.

Life isn't black and white as you all make it out and you shouldn't judge someone or make negative assumptions, none of you would appreciate it if someone treated you the same way.
Deal Addict
Oct 4, 2009
2634 posts
1500 upvotes
Montreal
oceania wrote: It seems like a bunch of you are just nosey and can't provide help even if you wanted. If he doesn't want to share the story, it's nobody's business, especially if it has no relevance. Even if he did share it, people on here would make assumptions and criticize him like you're doing now. He's just asking for advice on his credit rating.
Why should we help someone who could very well be scamming folks? It's perfectly reasonable and even commendable to want to know more before deciding if we want to help him. The OP is being very shady in the entire thread. This is an open message board, don't post on one if you aren't willing to have others comment and ask you questions about the situation. Just because someone tries to dictate what the responders should restrict their replies to doesn't mean that's what is going to happen. This isn't communist China.

OP has made several claims which don't pass the smell test, put up a sensationalistic outright lie in his subject title and has repeatedly refused to clarify the incident which started this whole dispute. There are forums out there where he'd have been banned by now for his behaviour.
Life isn't black and white as you all make it out and you shouldn't judge someone or make negative assumptions, none of you would appreciate it if someone treated you the same way.
What is this, an after school special? Perhaps you should go back to learning how to drive stick and let the grownups post in this thread.
Deal Addict
Apr 27, 2005
2088 posts
1109 upvotes
Montreal
xlfe wrote:
Can PayPal Ruin My Credit Score?


No. PayPal does not report to credit reporting agencies. If you owe PayPal money for any reason (such as you have a negative balance), PayPal will attempt to collect the debt from you.

Depending on the amount that is owed, PayPal will do one of two things. First it will write the debt off as a business loss (PayPal does this for tax purposes). Or two, PayPal will sell your debt at a discount to a collection agency such as NCO Systems or IC Systems. Collection agencies have the ability -- but NOT ALWAYS THE RIGHT -- to insert negative information into your credit report that might make it more difficult for you to obtain credit and obtain favorable credit rates.

In short, yes. you'll have the right to dispute it with the credit bureau but you'll lose because you agreed to the terms and conditions created by paypal. In OP's case he failed to dispute meaning he might as well have gave the money back himself.
Wow this is helpful. Unfortunately it seem that this page is written for Americans and Canada has a totally different laws. I've been searching for info to help the OP as well, but haven't seen any relevant info for Canadian PayPal debts. I can understand the OP's confusion.

I've had several fraudulent PayPal chargebacks myself from transactions which were miscategorized as a "payment for goods" as opposed to "personal payments". I lost them and was not even offered any recourse. The problem with PayPal is that it is not government regulated and doesn't offer anywhere near the same merchant protection of regular payment processors (which require signed statements and more concrete evidence for chargebacks). Hence the numerous horror stories like this:

http://www.paypalsucks.com/newforums/ho ... ng-me.html

http://www.paypalsucks.com/newforums/ho ... -my-s.html

Most people don't realize that PayPal is not just a payment method for eBay. It is used for sending money between two people who owe each other money. It is used for buying a good or a service from a business OR an individual. It is even used as a substitute banking method.

That being said, any payment method that allows a buyer to buy a laptop, urinate on it, and return it for a full refund without offering any recourse to the seller...is in dire need of government intervention.
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Sr. Member
May 8, 2008
837 posts
17 upvotes
S5 wrote: What is this, an after school special? Perhaps you should go back to learning how to drive stick and let the grownups post in this thread.
Yes, because your posts are very mature and grownup :rolleyes:
Sr. Member
User avatar
Nov 7, 2004
783 posts
48 upvotes
Vancouver
deal_king wrote: Let me preface this by stating that I'm not responding the controversial aspects of this thread, nor do I condone when RFDers get personal in their responses to the point of attacking a fellow RFDer. RFD is meant for the communal sharing of information for the betterment of all of us, not for the demeaning or assailing of posters by people who might not fully understand topics being discussed.

This thread is not here to discuss the etiology of the OP's situation. It is here because he needs our help with specific concrete answers. Frankly, given his story, I'm inclined to believe him. One has only to check the forums at www.paypalsucks.com to see that this kind of experience is fairly common. His only mistake was that he used PayPal.

I have worked in e-commerce for many years and I have seen a lot of PayPal nightmares from merchants and individuals who are completely innocent. The only kind of person who can help the OP is someone with "factual and real-world" experience with PayPal effects on credit reports.

A "troll" is someone who posts inflammatory, extraneous, or off-topic messages in an online community. That being said, most of the responses above are off-topic and from people who have never had any such experience with PayPal or PayPal on a credit report, haven't even read the OP's posts in this thread, and are simply cluttering up a thread that could otherwise be very useful.

I for one would also like to know if PayPal debts appear on credit reports. Let's hear from those who have truly have relevant information to contribute.
My sentiments exactly...

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