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Unknown collection account until last night

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Unknown collection account until last night

Short story, last night I couldn't log into my PayPal account, so I called my sister to find out why.  I allowed her to use my PayPal and eBay account for almost two years.  She likes to buy and sell stuff on eBay.  Anyway, I found out that I have a negative balance with Paypal, $ 1,377.54 to be exact, due to some dispute by buyer and eBay took the buyer's side.  It has been transferred sold to (unsure at this time) to Mrs. BPO, L.L.C.  I got a copy of the collection letter from my sister just now.  It was mailed out to my old address where I used to live with my family.  The letter dated April 26, 2017.  

My question is this collection account is not listed on my credit report, hence my lack of knowledge about it.  I don't want to DV it since it is confirmed that I, well at least my sister, owe this amount to Paypal.  I also don't want to wake up a giant bear that has been hibernating for the past eight months.  What would be the best course of action for me in dealing with this collection account?  Do I contact them by phone or in writing to negotiate and pay it off before they decide to post it onto my credit report, or should I draft an agreement that I agree to pay it off if this collection account stays off my credit report?  I don't want to provoke them since there has been no other mail since this letter,  according to my sister.  I'm currently in the process of rebuilding and do not want another negative on my report as I already have one remaining with PRA that is due to fall off at the end of next year. 

Thank you in advance.

Message 1 of 23
22 REPLIES 22
Senior Contributor

Re: Unknown collection account until last night

I personally would write them a letter saying you can't acknowledge ownership of any debt but you would be willing to pay $X in order to settle it now, as long as they agree to not report it to any credit bureaus now or ever, and agree to never sell, assign or transfer any portion of the debt to anyone else upon payment.

 

Feel free to pay it all or negotiate a smaller balance.

 

One downside is Paypal tends to blacklist forever for some folks.  I know a LOT of small business owners who can't open a Paypal account now because they were blacklisted 10 years ago!  

Message 2 of 23
Contributor

Re: Unknown collection account until last night

Also, is the reason why Mrs. BPO hasn't posted this account onto my credit report is because they do not have my S.S. #?  I'm just wondering why because I had collection posted with amount much less than this. 

Message 3 of 23
Contributor

Re: Unknown collection account until last night


@ABCD2199 wrote:

I personally would write them a letter saying you can't acknowledge ownership of any debt but you would be willing to pay $X in order to settle it now, as long as they agree to not report it to any credit bureaus now or ever, and agree to never sell, assign or transfer any portion of the debt to anyone else upon payment.

 

Feel free to pay it all or negotiate a smaller balance.

 

One downside is Paypal tends to blacklist forever for some folks.  I know a LOT of small business owners who can't open a Paypal account now because they were blacklisted 10 years ago!  


Thanks for the quick reply.  I'll probably do that later on tonight.  Maybe I'll offer them 75% of the total balance first to see if they agree.  What I'm concerned is that if they do not agree to it and decide to report the collection anyway since they have the advantage over me at this time.  It is also still within the SOL for California. 

Message 4 of 23
Senior Contributor

Re: Unknown collection account until last night


@RebuildisaPITA wrote:


Thanks for the quick reply.  I'll probably do that later on tonight.  Maybe I'll offer them 75% of the total balance first to see if they agree.  What I'm concerned is that if they do not agree to it and decide to report the collection anyway since they have the advantage over me at this time.  It is also still within the SOL for California. 


Yep, that's why it's tough to know what to do here.  I had a debt within SOL until April so I didn't touch it -- wasn't reporting.  Once out of SOL I offered then $5 to not report it, not reassign or sell it, and to make it go away.  It was a $700 debt.  They countered with $600, I offered them $6 (this was all in writing) and we went back and forth until we met at $112 or something like that, haha.  They never did report it, but I assumed they would have, although I did put in writing that "This debt is outside SOL and if you report it to the credit bureaus during my attempts to pay it, I will withdraw all settlement offers forevermore and if you assign or sell it to anyone else, I'll send them our letter history."

 

I love FOAD letters, but in your case, they're the ones holding the cards.

 

Might just make sense to be ready to PIF if needed.

Message 5 of 23
Established Contributor

Re: Unknown collection account until last night

AND you just have me an idea!!
I sent you a private message.
Message 6 of 23
Frequent Contributor

Re: Unknown collection account until last night

Your SS Number is not needed for collection account reporting.  Mrs BPO must not have a current address for you because its usually name and address a collection company reports with when a SS# is not provided.

 

I can gurantee you if anyone at your sister's address with the same last name as you pulls their reports, they will see Mrs BPO pulling a soft report on one of their reports.

 


@RebuildisaPITA wrote:

Also, is the reason why Mrs. BPO hasn't posted this account onto my credit report is because they do not have my S.S. #?  I'm just wondering why because I had collection posted with amount much less than this. 



credit reports




Starting Score: May 23, 2016 EQ 537 TU 518 EX 548
Recent Scores: May 04 2018 EQ 724 TU 713 EX 722
Goal Score: 720
Current Vantage 3.0: 785
Mortgage Scores August 18 2017: EQ5 684 TU4 692 EX2 690
Message 7 of 23
Valued Contributor

Re: Unknown collection account until last night

Since this is your sisters mess am wondering why she hasn’t cleaned up something she obviously knew about??? Tell her to write you a check!
Message 8 of 23
Frequent Contributor

Re: Unknown collection account until last night

 


@gdtobefree wrote:
AND you just have me an idea!!
I sent you a private message.

Oh boy, I have an idea now too.  What are the odds it's the same one?  

Message 9 of 23
Valued Contributor

Re: Unknown collection account until last night

?? Nosy posters want to know!
Message 10 of 23
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