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PayPal Credit - Credit Reporting

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Anonymous
Not applicable

PayPal Credit - Credit Reporting

I fell into the trap of PayPal credit's sneaky game. I bought an item I thought was through Paypal.  Six months later, I get a nasty letter from PayPal credit stating my $56 purchase is now a $200 debt. I fought with them, reported to the AG in my state. But nothing.

 

I paid the balance for the item - which I never paid because I thought everything had been paid through Pay Pal. So I paid the $60.00. I've been VERY stubborn to pay the rest.

 

They have now turned over the remaining about to a collection agency - RGS.  So, I was curious to know if PayPal Credit will report me to a credit agency or RGS?  I check my credit via all the free sites and trial accounts with the credit agencies. I don't see anything showing up as of yet.

 

I read somewhere on these forums Paypal Credit doesn't report.  Curious if that's true and if RGS might.

 

I know Paypal credit is being sued via class action brought by the Government for the exact practices that occured to me. I'm wondering if they are taking another approach.

 

I have the letter in front of me from the credit agency and about to pay the minimum monthly to resolve because I fear a drop of my score if they report. BUT - I'm stubborn and if they don't report, I refuse to pay anything but the original balance (which I alreayd paid).

 

Thanks - hope to get an answer soon so I can close this tonight..either way.

Message 1 of 17
16 REPLIES 16
Luscher
Valued Contributor

Re: PayPal Credit - Credit Reporting

the paypal credit account its self does not report to the credit agencies but the collection or any negatives will!
CHASE FREEDOM | AMEX BCE | | BOFA REWARDS | CITI TYP | Quicksilver | DISCOVER IT | Sallie Mae | CHASE CSP
--------$32,000-------------$30,000-----------$30,000-----------$30,000-----$13,000---------$18,200----------$15,000---------$6,500----

FICO - TU: 780 EX: 784 EQ: 781
Message 2 of 17
takeshi74
Senior Contributor

Re: PayPal Credit - Credit Reporting


@Anonymous wrote:

I fell into the trap of PayPal credit's sneaky game.


Failure to read the terms on your part and/or not notcing which payment method was selected for a Paypal transaction is not a "sneaky game" on the creditor's part.  Always read and understand the terms.

 


@Anonymous wrote:

I have the letter in front of me from the credit agency and about to pay the minimum monthly to resolve because I fear a drop of my score if they report. BUT - I'm stubborn and if they don't report, I refuse to pay anything but the original balance (which I alreayd paid).

 


If it reports then paying probably won't help.  Carefully research in the Rebuilding subforum before taking action.

Message 3 of 17
Anonymous
Not applicable

Re: PayPal Credit - Credit Reporting

Yes it is sneaky. Not sure of your angle. They are being sued for that reason. But that isn't my question. Awfully defensive about PayPal.

Message 4 of 17
Anonymous
Not applicable

Re: PayPal Credit - Credit Reporting

1. PayPal Credit involves a separate, though very short, credit application. Do you recall filling that out?

 

2. PayPal Credit sends statements via email and, possibly, regular mail too. You receive no statements?

 

Trying to understand how you didn't know for six months. Surely, PayPal Credit would have sent emails asking for payment many times in that span.

 

As for what to do. That depends in part on whether PayPal Credit has sold the debt. RGS may be a collector acting on PayPal Credit's behalf. If you can still pay through PayPal Credit, then it would be wise to pay the fulll amount due straight away. However, if PayPal Credit has sold the debt, it may still be worthwhile to pay RGS in full in hopes they don't report it to the credit bureaus.

 

Finally, from what I've read, there's a decent possibility such debt may never be reported regardless of what you do, but if it is, your credit scores will likely drop a lot. It's a roll of the dice.

Message 5 of 17
Anonymous
Not applicable

Re: PayPal Credit - Credit Reporting

 No - I do not remember filling anything out. HOWEVER - I will be honest, during my discussions with PayPal credit...apparently I used their credit service about 10 years ago, so I had an account.

 

As for the statements - that was my whole issue. I never received and email OR snail mail statement until five months later.  I only found out when I got the 'warning' letter through the mail.  I don't delete my spam or regular email..so if it was there, I would have found it in a search. I've asked them to verify they sent me the emails - they've never confirmed. THAT is my issue and THAT is why I have problem.  I have zero problem (and already have) paid my original balance. But without any statements, it's a little sly on their part to then ask for $200.

 

I've go to wait to Monday to talk to RGS.  Your approach is what I've already considered. But I don't want to pay anything until I determine if they've already reported me. If they have, I want to try and negotiate it off with them OR go through the formal process of them validating the debt.  I feel I lose all my leverage if I've paid already.

 

Thanks.

Message 6 of 17
Anonymous
Not applicable

Re: PayPal Credit - Credit Reporting

Just a thought. Have you changed your email address since you opened that PayPal account years ago?

Message 7 of 17
Anonymous
Not applicable

Re: PayPal Credit - Credit Reporting

Thanks for the info. Makes sense you wouldn't recall the application, since BillMeLater, which has been around for many years, morphed into PayPal Credit.

 

However, as for no emails. Musiclover brings up a good point - have you changed your email in the past 10 years?

 

On a related note, PayPal tends to retain old email addresses indefinitely even after one changes it. Not something many are aware of. Any email address one has ever used for PayPal, which now includes BillMeLater / PayPal Credit, should be kept active indefinitely, because sometimes, especially for those actively selling on eBay, those old email address(es) can come back. Likewise with old street addresses, but that's a whole topic in itself, and mostly an issue for eBay users.

 

If you're able, log into your BillMeLater account (even though PayPal Credit and BML are now the same, the account management may not be for all) to see what's shown there, paying special attention to what email address(es) it's associated with.

 

RGS is not likely to be understanding, and even less so, if they've bought the debt. Sure, they may offer a discount or whatever, but they're still going to want a payment of some sort. Paying anything less than full could result in credit reporting and/or additional collection action for the remainder plus interest, etc.

 

Debt collectors are natorious for making all sorts of claims and promises - don't trust any of it, be very skeptical. Don't bring up reporting at all. That will open a can of worms. Simply check your reports prior to calling. Debt collectors generally don't report after paying in full. They can, but most won't - doesn't make sense for them to spend money to report a paid-in-full debt.

Message 8 of 17
Anonymous
Not applicable

Re: PayPal Credit - Credit Reporting

Very helpful! Thanks Ronpa:

 

1) I've never ever changed my email. I've used the same account for almost everything for literally 19-20 years now.

 

2) So what is the best reccomendation? Look, I've tried to fight this. The AG claims to be on it, but who knows.  So, at this point - for $150.00 it's not worth screwing up my credit (my pride has pushed me this far).  Should I pay RGS or PayPal Credit (if that option is still available).  It moved to RGS on 9/16 - so would this be showing up on my credit report yet...IF they reported. I guess, how long before they typically report or it shows up.

Message 9 of 17
Anonymous
Not applicable

Re: PayPal Credit - Credit Reporting

Oh - the even more lovely problem - and one of my issues from the beginning - they sent an email to my email address.  But when I try to log in, I can't. When I ask for a password reset via email, they state my email account (which they had just emailed me) doesn't exist in their system.  See how screwy this all is?

Message 10 of 17
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