Paypal Collections on Your Credit Report? Fight Back and Win

Last Updated:
April 15, 2023

Has Paypal Collections suddenly appeared on your credit report? Don’t be alarmed. You’re among thousands facing ruthless intimidation tactics and potential harassment at the hands of the Paypal Collection Department. Although Paypal is among one of the largest money-transfer platforms globally, many consumers have run into issues with debt collection from them.
Debt collection companies target unwitting individuals, and their communication methods are often relentless. Confronting a debt collector is often stressful, confusing, and overwhelming. If you’re wondering how to remove Paypal Collections from your report, here’s what you need to know.

What is Paypal Collections and What Do They Do?

Millions of users enjoy Paypal’s seamless money-transfer services with ease. However, many people don’t realize that they can, in fact, go into debt on Paypal. Their collections branch focuses on hunting down unsuspecting consumers who owe a large sum of money to a lending company. In many cases, Paypal Collections purchases debt from major creditors or businesses at a fraction of the cost. 

Then, in turn, they take it upon themselves to collect the debt on behalf of larger lending institutions.
Paypal was first established in 1998, and is now one of the biggest financial companies in the world. Many users pay for various services or products through Paypal, and can even lend money to friends and family through their platform. With over 325 million users to date, Paypal’s convenient services have paved a new pathway for money transfer, but their collection services can be intimidating.
Once users sign onto their credit services, or pay-as-you-go services, it is immediately reported to credit agencies. This can lead to several issues for consumers, including incessant contact via their collections department. Additionally, businesses that use Paypal can file a claim to Collections if they aren’t happy with a customer’s payment history. 

Is Paypal Collections a Legitimate Company?

Though it may not appear so initially, Paypal Collections is a real company, not a scam. However, they may use problematic communication methods when interacting with their customers in collections. This can include relentless phone calls, messages, emails, letters, and more.

Although it’s tempting to ignore their phone calls, it’s imperative that you take all communications seriously. Their debt collection reports will adversely affect your credit score and they can be aggressive in pursuing payments.

Company Information

Paypal Collections may contact you from a wide range of different phone numbers. While their Collection department’s information remains vague, Paypal’s company information is as follows:

Does Paypal Collections Spam Their Recipients?

Yes, Paypal Collections is known for spamming their recipients with multiple phone calls a day. All debt collectors must oblige by the Fair Debt Collection Practices Act, or the FDCPA. Therefore, if you suspect any oppressive or discriminatory behavior, it’s essential that you report this to a trusted source immediately.

Noteworthy Signs of Harassment

Any behaviors or actions that are threatening, oppressive, degrading, or abusive are a violation of several FDCPA laws and regulations. There are a few noteworthy signs of debt-collection harassment. If you’re experiencing any number of these behaviors via Paypal Collections, you reserve the right to take action.

  • Bullying, coercion, or generally intimidating behavior toward a recipient or consumer
  • Spamming your phone with multiple phone calls a day, or during early morning hours or late evening hours
  • False accusations and making untrue statements
  • Empty threats of a lawsuit, violence, arrest, and more
  • Attempts to communicate with you after an attorney has agreed to represent you

Although this list is far from complete, these behaviors are considered harassment and you have consumer rights protected by law.

What Does Paypal Collections Collect For?

It’s unclear what Paypal Collections collects for since they do not disclose a complete list of their clients. As mentioned previously, this debt-collection agency purchases from a few different businesses and creditors. Paypal Collections largely keeps this list private. Therefore if you are receiving calls, texts, or emails from them it is best to order your full credit report and review it carefully for delinquent debts.

How This Affects Your Credit

Any collection agency appearing on your credit report affects your credit score. This can affect your ability to secure a loan, your ability to get approved for housing, and more. However, many debt collection companies make false reports, such as the following:

  • The debt may have been accrued as a result of identity theft
  • The debt is over 7 years old
  • The debt may have already been paid off
  • The debt belongs to someone with a similar name, and your name is under the same file
  • The debt is mistakenly being reported twice under differing business entities 

If you suspect that the debt has been misreported seek legal advice for the best next step. 

Remove Paypal Collections from Your Credit For Good: Here’s How

It’s more than possible to effectively remove Paypal Collections from your credit report. Take these viable steps to secure your financial health for the years to come:

Review Your Report for Accuracy

As stated before, Paypal Collections and other collection agencies often make mistakes. Request copies of your credit report from multiple credit bureaus to review discrepancies and errors. This could save you endless time and stress in the long haul.

Send a Cease & Desist Letter

You reserve the right to terminate contact with Paypal Collections. A cease and desist letter allows you time to research and verify the debt being pursued. If you are unsure how to form a cease and desist letter, or want to ensure accuracy and efficiency, seek professional guidance.

Hire the Right Support

Many consumers are seeking the aid of unbiased third-party debt collection attorneys. They can help you determine if the debt being pursued is valid, check for errors or misdirected reporting, and advise you on the best route to protect your credit score. 

Receive Support from an FCRA Attorney

Restoring your financial freedom doesn’t have to be stressful. If Paypal Collections or another debt-collection agency is hindering your credit score, support is available. Our reliable FCRA attorneys are here to provide the necessary resources to pave a new pathway. Together, we can rebuild your credit and review your case to ensure the best possible outcome.

Contact us today to request your free case review!

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