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Question By
aik3

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PayPal bill went into collections
I received payment for a service via PayPal, however, the purchaser chargedback the transaction so PayPal was requesting that I provide documents to prove the sale and receipt of the "items". I failed to see that i only had 10 days to dispute this charge so my account went into negatives and I could no longer dispute it. Recently I received a card from their collection agency, "ACI", asking me to pay the balance. I called PayPal and they told me I could pay/deal with PayPal instead of the collection agency and that any record of it being sent to collections (possibly affecting my credit score) would not be linked to me.

I just want to see if anyone has had any experience like this (with PayPal or other debt) and if it's true that it will not affect my credit report at all?

I'm in the early stages of purchasing a home so I would not want this to show up on my credit report or bring down my score when it comes time to closing.

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It sounds like Paypal will pull the account back from the debt collector if you pay it. I would do this ASAP as you do not want a collection popping up on your reports. When using paypal to invoice a customer, you must set terms and conditions favorable to you on the invoice that the customer agrees to. Things such as: no warranty, no refunds, customer agrees to not chargeback the payment, etc. Customer agrees to terms by making payment, customer should not make payment if terms are not agreed to, etc.

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