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Paypal nightmare

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Contributor

Paypal nightmare

I had a situation a few weeks ago where my ebay and paypal were hacked. There were several hight dollar purchases made using my paypal and the credit cards attached to that account. The last purchase made was for $29,000.00 using an insta transfer from my bank account linked to paypal. I contacted paypal figuring I would be fine because I have had a many year relationship with them. Initially when I put in the claims they were instantly approved and the stolen funds were to be returned as credits to my account. When I called back about an hour later I was told my paypal was closed due to the "high risk" associated with my account and all claims were denied. I immediately called all the credit cards associated with the purchases to start the claims processs with them and closed the bank account that was attached as well. The only problem is the insta transfere was returned unpaid. This eventutally is going to bring my paypal ballance negative and I have no way to stop it as paypal will not re open the fraud cases. My question here is will paypal put this negative ballance into collections? I am extreamly worried about my credit rating being affected here. 

Message 1 of 20
19 REPLIES 19
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Established Contributor

Re: Paypal nightmare

THis is a nightmare and I'm wishing you the best. If PayPal insists on not re-opening your claims and your account was indeed protected like nothing hacked in the past, file a complaint with the CFPB thats the starting point, also make sure you file a police report. Sadly I had to do that for $15 transactions that kept hitting my PP account from someone named Robert and PayPal argued it was coming from my IP. I changed my PP password, turned on auth, set my mobile number for alerts and texts, removed all but one throw away card from the account also, reset my wifi routers and made sure I didn't see any device logged into that wasn't inside my home. Because right after that someone tried $12k from my bank account. Lesson learned on my behalf.  In the end, I won the dispute but I only use my PayPal account to pay for MS Office 365 which they could see that was all it was ever used for in years.

Fico 8 starting scores 09/27/15 EQ: 646 TU: 622 EX: 668 5 collections 1 PR reporting across the board
Scores 06/30/16 EQ: 685 TU: 699 EX: 695 1 collection now reporting on EQ and EX and 1 PR on EQ
Current scores 11/4/2016 EQ 688 TU: 705 EX: 736 No collections no PR/Judgements Finally Clean
Message 2 of 20
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Contributor

Re: Paypal nightmare

I appreciate the info and yes there seems to be real issues in the way paypal tries to protect its clients. There was almost $90K worth of transactions processed thru my paypal in a few day period. Most of the trasactions drawing directly off my credit cards. Whats amazing here is that my paypal has at the max never seen more that $2-3k in transactions at any time. How they would let the language,phone number & mailing address be changed all from different IP's is beyond me. Not to mention the fact that they allowed a $29k insta transfer be completed without verifying the activity or funds availability seems extreamly lax on their part. I have no idea what they are thinking

Message 3 of 20
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Moderator Emeritus

Re: Paypal nightmare

If you file a police report of identity theft your credit rating will not be affected by any adverse actions by any creditor.  The CRAs are required bunder the FCRA to delete any negative entries arising from identity theft  You must file the police report though to protect yourself.

Message 4 of 20
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Legendary Contributor

Re: Paypal nightmare

Billing related issues on revolving accounts are also subject to the much more comprehensive dispute process offered under the Fair Credit Billing Act.

I would consider filing an FCBA dispute.

Message 5 of 20
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Established Contributor

Re: Paypal nightmare

Best of luck with Paypal...They are beyond screwed up in who they protect. That's why I will never open a paypal credit account.

I had been on eBay for 10+ years and sold a set of JBL studio monitor speakers (very rare). Sold them for $1700 and the buyer was in NYC and paid via paypal.

I waited till funds cleared into my bank account to ship. I boxed them and paid $100 extra for them to be packaged correctly and shipped them to the buyer.

So the buyer claims a week a later HE never got them. Yet I had proof they were delivered to the verified address. The instant I got the email from paypal stating they were pulling the $ back till the claim was investigated I called my bank to freeze my account. So I kept the $ but they sent me to collections and I have never been able to use Paypal again in my own name. Sad thing was I kept the money rightfully so and the speakers were delivered to the verified address and no I never got the speakers back.

Not only did Paypal tack on attorney fees and some other BS but they came after for about $2300 when all was said and done. 

Good luck !

Discharged BK7 - 7.16.15
Current Fico8 - (09.15.20) EX - 676/EQ - 669/TU - 671
Total CL - $250,862.
Message 6 of 20
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Contributor

Re: Paypal nightmare

Thanks for the info 

Message 7 of 20
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Contributor

Re: Paypal nightmare

Message 8 of 20
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Contributor

Re: Paypal nightmare

Soory to hear that 

Message 9 of 20
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Legendary Contributor

Re: Paypal nightmare

The FTC web page has a good discussion of how to file a dispute under the FCBA.

Message 10 of 20
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