Is my Paypal debt going to appear on my credit report?

JupiterRising

Member
Jul 13, 2008
157
0
SF Bay Area
I searched and couldn't find another thread about this.

I used to sell makeup and skincare on Ebay. Nothing major, but I did about $500-$1000 a month in sales. I've ended the business about six months ago because of too many bad buyers, shipping problems, ridiculous fees and the new Ebay rules. I got fed up with Paypal always siding with the buyer in disputes and after the last one decided to take a (mini) stand.

I had a buyer that purchased a Peter Thomas Roth Unwrinkle serum, which I sold for $60 BIN. I shipped it promptly and well-packaged, like always, and the serum was factory sealed in plastic.

About one month later the buyer sends me an email saying the bottle was empty. That she had cut it open to find out there was no product in there and that I had sold her an almost empty container. This was total crap since the bottle was factory sealed! I had sold another at the same time with no problems. I refused to issue a refund and she filed a SNAD paypal claim. I fought the claim with paypal, and I had pictures of the factory sealed bottle. I brought up that it took her a month to file her claim, presumably after she used the entire product and then decided she wanted her money back. But, of course, Paypal didn't care and sided with the buyer.

However, I had already closed the bank account associated with Paypal and my paypal balance was almost zero which went to negative after the reversal. I refused to replenish the account since I didn't think I was in the wrong. Unfortunately I've now received an evil letter from their collection agency, so I guess I will pay the damn thing.

My question is this: Is this going to appear on my credit report and trash my credit over $60? I certainly hope not, but I have no idea and I hope someone will! TIA!
 

pot_luck

O.G.
Nov 25, 2007
1,674
34
On The Iron Horse
I doubt it will be on your credit report unless you gave them your SS#. I had a similar situation and it was never reported on my credit report. I also never gave PP a dime.
 

JupiterRising

Member
Jul 13, 2008
157
0
SF Bay Area
I doubt it will be on your credit report unless you gave them your SS#. I had a similar situation and it was never reported on my credit report. I also never gave PP a dime.

I didn't give them my social security number, wasn't about to even go there with all the problems I've had. Thanks so much for your answer!
 

JupiterRising

Member
Jul 13, 2008
157
0
SF Bay Area
YIKES! I can't believe they sided with her! That is such bs
Good luck
Ha! That's paypal for ya, I've had horror story after horror story. I had woman in the UK purchase 9 NARS blushes from me. I was a little frazzled at the time due to some personal issues and forgot to include one of the blushes in her order, totally my fault. But, instead of contacting me about it, she immediately filed a paypal claim. I listed in the dispute that I would either refund her $25 (which is far more than she paid, plus shipping) or that I would send her the blush that was missing immediately. Paypal decided that neither of these options were good enough and refunded her the ENTIRE PURCHASE AMOUNT. So, that lovely buyer got 8 blushes for free. And no, she didn't send the money for the 8 blushes. She kept it and I was out nearly $200. Thanks Paypal!
 

moi et mes sacs

Science Geek!
O.G.
Sep 22, 2007
8,730
282
These Paypal stories are terrible.
In Uk we can get a credit report for a small amount, I am sure this service exists in US too. You could ask for a print out. If Paypal have compromised your rating you should be able to have the comment removed.

Good luck.
 

coachfreak

Looking for LVOE
I doubt it will be on your credit report unless you gave them your SS#. I had a similar situation and it was never reported on my credit report. I also never gave PP a dime.
Yes, but I had a claim from a book club (we moved and they continued to send books even after I cancelled it) and they sent me collection notices to my NEW address months/years later and I believe they put it on my credit report and I NEVER gave them my SS.

Because Paypal was tied to a CC or bank account and they have your name and address I am sure they can find your credit report.
 

authenticplease

Moderator
O.G.
Jul 31, 2008
12,084
249
In My Own Little World
I would definetly query into my credit files. You get a free credit report from all three reporting agencies. Look at freecreditreport.com. Make sure you monitor your reports if you don't intend to pay the PP dispute amount.

Also, the collection agency letter should have said that you have 30 days to respond to the validity of the debt. After those 30 days, they will deem it valid if you have not disputed and hassle you endlessly before reporting to credit bureau.
 

authenticplease

Moderator
O.G.
Jul 31, 2008
12,084
249
In My Own Little World
I know it is the principle of the original matter but it is only $60. Is it worth the stress, time, aggravation and potential damage to your good credit?

Sometimes you have to decide, is this the mountain I want to die on?
 

tadpolenyc

O.G.
Sep 9, 2006
27,979
2
no, it will not appear on your credit report. if you visit paypalsucks.com, they have a lot of information regarding this scenario. the collection companies might hound you, but you can get them to stop by sending them a certified letter disputing the amount owed.

my friend was in the same exact situation as you are a year ago. she sold a bag about a year ago. after leaving her positive feedback, about two weeks later, the buyer sent her an email claiming the bag was fake and demanded a refund. she gave paypal all evidence during the dispute including the eluxury receipt, but they still sided with the buyer. after paypal refunded the money to the buyer, she was out both the bag and $600. she refused pay back the negative balance, and they ended up sending her info to a collection agency. the worst thing that happened was that they would call her four or fives times a day, but after they received the cease and desist letter, the calls stopped. she still gets collection letters from them every now and then. it never affected her credit score though.
 

allie06nd

Member
Mar 18, 2008
135
0
I had a debt (that I didn't know I had, no less) appear three years later on my credit report. It was from when I got sick in college and had to have some bloodwork done. My parents paid for college, so everything went through the university and was billed directly to them, and my dad got it but just forgot to pay it. Yet I was the one who ended up getting harrassed daily by the creditors, and my credit report is the one it turned up on (after I had moved THREE TIMES).

So yes. I'm pretty sure they can find you, and even though I think it's totally unfair that they sided with the buyer, don't let a stupid $60 scar your credit report (BTW, once the debt was paid off and the collection account was closed, my credit score rose by 140 points). Plus, you had to give paypal a bank account or credit card number when you had an account with them, so they can probably pretty easily use that to find out your SSN.

Unfortunately it look like you're stuck.
 

pot_luck

O.G.
Nov 25, 2007
1,674
34
On The Iron Horse
If PP finds op ss#, they would have to do it illegally. They have no legal right to that info unless op gives it to them. That is why they try to get your SS# for verification purposes. OP credit card co or bank will not release their ss# to anyone under no circumstances.

In response to allie06: the school already had your info so it wasnt as hard.
 

uwhuskygirl

I need a cupcake.
O.G.
Oct 25, 2007
542
0
I think I'm going to have to go through this soon.

Does anyone have any info on a "cease and desist" letter to PP that I may need to write?

And I was a dum@$$ and gave them my SS# to have the $500 limit lifted from my account. Ugh.

I'm on my way to paypalsucks.com right now, but was just curious.

Thanks!
 

cutiek1t

O.G.
Oct 5, 2006
958
2
My husband and i found out the hard way when we were about to close our loan for our new condo, there was a debt from collection agency and it did ruin his credit score we ended up paying the amount plus interest.