topic PayPal Credit - Credit Reporting in General Credit Topics

PayPal Credit - Credit Reporting

Anonymous — Sat, 03 Oct 2015 22:13:35 GMT

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.

Re: PayPal Credit - Credit Reporting

Luscher — Sat, 03 Oct 2015 22:27:42 GMT

the paypal credit account its self does not report to the credit agencies but the collection or any negatives will!

Re: PayPal Credit - Credit Reporting

takeshi74 — Sat, 03 Oct 2015 23:49:42 GMT

@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.

Re: PayPal Credit - Credit Reporting

Anonymous — Sun, 04 Oct 2015 03:31:01 GMT

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.

Re: PayPal Credit - Credit Reporting

Anonymous — Sun, 04 Oct 2015 13:40:39 GMT

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.

Re: PayPal Credit - Credit Reporting

Anonymous — Sun, 04 Oct 2015 14:02:42 GMT

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.

Re: PayPal Credit - Credit Reporting

Anonymous — Sun, 04 Oct 2015 14:10:52 GMT

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

Re: PayPal Credit - Credit Reporting

Anonymous — Sun, 04 Oct 2015 14:48:44 GMT

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.

Re: PayPal Credit - Credit Reporting

Anonymous — Sun, 04 Oct 2015 15:38:50 GMT

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.

Re: PayPal Credit - Credit Reporting

Anonymous — Sun, 04 Oct 2015 15:43:04 GMT

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?

Re: PayPal Credit - Credit Reporting

Anonymous — Sun, 04 Oct 2015 19:08:29 GMT

PayPal is a fundamentally evil company. I use them to pay on eBay but I wish I didn't have to.

Re: PayPal Credit - Credit Reporting

Anonymous — Sun, 04 Oct 2015 21:36:23 GMT

PayPal / BML "losing" your email would explain the lack of billing notices. Contact PayPal Credit / BillMeLater to recover your password. Recovery process may be a hassle, but getting back in will allow you to see detailed account activity and user settings, plus may allow you to pay the remainder on-line, if you choose to do that.

It's very wrong for PayPal Credit / BML to charge you late fees, etc without sending you monthly statements. The lack of ability to recover password through email suggests they weren't sending you email statements to your on-file email address. It's definitely something you could pursue. However, it may take a lot of effort (though likely less, if PayPal Credit / BML still owns it), and possibly involve credit report disputes. You would likely prevail eventually, but is it worth the time and effort to fight over $150. Maybe it is depending on how strongly you feel about this.

If PayPal / BML still owns the debt with RGS contracted to collect, it might not report for ages, if ever. However, if RGS bought the debt, RGS could report soon as 30 or so days after they acquired it; early as mid October.

Re: PayPal Credit - Credit Reporting

Anonymous — Mon, 05 Oct 2015 03:29:32 GMT

At this point I'd paid 150 to keep it off my credit report. With all the gardening I'm doing these days, I can't afford it. I'm simply worried about the best angle to keep it off my report and figure not paying yet and talking to them may give me some leverage...not to negotiate it down but to keep it off the report. But sounds like whatever I do, should do it before 30 days.

paypal credit is evil. The horror stories I hear are shocking. I know one op suggested for me to be more careful. True. But doesn't change the sneaky way they get you hooked in and I'm. To sure the lack of statements isn't intentional.

Re: PayPal Credit - Credit Reporting

Anonymous — Mon, 05 Oct 2015 17:36:19 GMT

So I talked to RGS and they told me several things:

1) They will settle for 90 of the 150 (I didn't even ask for that) - I told them (which is true) I'm working this through the AG of Maryland right now.

2) Asked if they report to the Credit Agency - they said PayPal credit does NOT and they do not ever report to the credit agency. Is that to be believed? It's on a 'recorded line' does that do me any good?

I asked about this would be closed out on a credit report (which they claim they don't report to) and asked if it would be balance paid in full (for the 90). They said 'no' and my account would say 'settled and paid'. Thoughts?

I'm also wondering - for $150 and if they really don't report...what is the ramfications is I don't pay? Lawsuit for $150? I'd end up paying at that point.

Thanks. I have very clean credit (750ish) and except for laziness I've never had anything but the occassional 30 days late and I always pay my balances in full - this is infuriating.

Re: PayPal Credit - Credit Reporting

Anonymous — Mon, 05 Oct 2015 21:14:55 GMT

Their comment regarding PayPal Credit does not report strongly suggests PayPal Credit / BML still owns the debt.

Have you logged into your PayPal Credit / BML account yet? See if you can pay from there - if so, that's a near sure sign PayPal Credit / BML still owns it.

Lawsuit for $150 is highly unlikely due to the nature of the debt. However, a derogatory entry on your credit reports, while unlikely long as PayPal Credit / BML owns it, is possible, especially, if and when, the debt is sold to a debt collector.

A collection could drop your credit FICO 8 scores a lot. Paying it off will boost those scores, but the entry would still be there; visible to other creditors who may check. While FICO 8 may not penalize paid collections much, if at all (don't recall), many creditors also utilize other FICO scoring systems and/or others unrelated to FICO, including their own custom in-house scores that may view collections differently. In short, a reported collection, while not the end of the world, will hurt your credit profile to some degree.

Re: PayPal Credit - Credit Reporting

Anonymous — Mon, 05 Oct 2015 21:52:55 GMT

It's definitely still under BML - which is the other ODD issue.

BML - I can log into and see the debt. However, all correspondence has come from PayPal Credit. Very odd. I know they are one in the same, but it's interesting none the less.

I'll probably pay it. But if they aren't reporting, I'm waivering until the AG at least is done. But, is it worth the chance for $150? Need to work on SWA companion pass. Lol.

Re: PayPal Credit - Credit Reporting

Anonymous — Tue, 06 Oct 2015 16:54:52 GMT

PayPal acquired BML and later rebranded it as PayPal Credit, but it still runs somewhat separate. Comenity bank handles the issuance of credit.

Not sure what the AG will do, but long as PayPal Credit / BML holds the debt, waiting on the AG and/or other avenues, such as BBB complaint (BML doesn't appear to be BBB accredited, so they might never respond) to pan out is worthwhile. PayPal often doesn't report to the bureaus, and seemingly isn't that agressive pursuing debt under high 4-figures. $150 is nothing to them.

Here's a link regarding relatively recent CFPB action against PayPal Credit / BML ... may be helpful in your correspondence with your state AG:

http://www.consumerfinance.gov/newsroom/cfpb-takes-action-against-paypal-for-illegally-signing-up-consumers-for-unwanted-online-credit/