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Hello, I’m Jim, a dual-qualified lawyer (UK & Republic of Ireland) and happy to help you today.
No, it will not be affected but if it remains unpaid they will pass it to debt collectors. If still not paid they will issue a small claim and only if the court judgment is then unpaid for 30 days will the credit rating be affected. But having a negative balance with PayPal does not affect your credit records (it is not a credit facility).
I hope this helps? If I have answered the question would you kindly leave me a 5 star rating (at the top of your screen), any follow up questions are welcomed.
They can do yes as you owe them money. It can happen occasionally - the debt collectors have no powers as such, they are not bailiffs. You could defend it on the basis you did not sign up to an overdraft facility. If they did sue then it would be 6-12 months from now where they get a court judgment (and you then get 14 days to pay that)
it's be the negative balance plus court fee (which depends on the size of their claim - see page 5 here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/789201/ex50-eng.pdf), plus interest at 8%, plus a hearing fee if there has to be a hearing (page 7).
Hi, if you let it get to the stage they issue a claim in court, you are then liable to pay that court fee if they win. I am not familiar with any other case like that. It's possible the overdraft is in PayPal's terms and conditions. But you could argue they misled you, so breached your consumer rights (under the Consumer Rights Act 2015).
No, as the 8% is claimable from the date the debt becomes due, so they can charge interest from now if they choose to.
I'm unsure of other cases - most are small claims so ones under £10,000 and as such these cases are generally not reported. Perhaps another expert may have the details. If you post another question about paypal case law, hopefully someone else will come along.
But I think you have an argument to defend the case anyway.
Here is some useful commentary which talks about unfair contract terms and paypal's negative balance situation :
I haven't seen any reporting ones online, no. That's not to say none have gone through the courts though. Generally the larger cases get reported, not ones for a few hundred pounds in dispute.
Just a Google search should throw up some results, e.g. "paypal negative balance small claims", or that sort of search criteria
Hi, i'm unsure of EU sites, I am a UK lawyer (and republic of ireland too). Perhaps a Google.com search?
Hi, I wouldn't worry, you could also try the Financial Conduct Authority on 0800(###) ###-####- they may know of some cases (they regulate financial institutions)
Thanks very much for the feedback - much appreciated!
My pleasure, have a good day