Actually I think I mispoke. Now, I'm not a financial wizard at all, or else I wouldn't be here. But maybe the company is not the new owner of the debt, but they are trying to collect for paypal as a client? The last time I talked to them on the phone, that's what they called paypal, a client.
I found plenty of articles and customers explaining that paypal does not send reports to the 3B, so if this company does not own the debt, just trying to work for paypal, does that change anything? this account is so old I dont even remember the balance. Like I said, its been a year since they contacted me last.
I've had a PayPal Credit account since they started it. Always in good standing and they don't report the tradeline, CL, or balance. I routinely use it for their 6 month same as cash deal and it never affects my overall utilization.
That being said, it's entirely possible an agency WOULD report it under the agency name as a collection. I had an ambulance bill for a $1k 15 minute ride to the hospital after a fainting spell in a restaurant that was turned over to an agency while I was working with insurance, etc. The agency did put it on my CR under their name, but removed as a pay for delete agreement.
It is probably still being handled in-house at PP. The amount is probably not a lot or the CA would be hounding you. If the amount was somewhat substantial the CA would assign the collection to an attorney local to you to file suit in Small Claims Court. I would not contact PP.