What Happens When You Don't Pay Off Loans From Banks?
When you take out a loan, the bank puts a lot of trust in you. Without really knowing your or some of your financial habits, it lends money based on the hope that you'll keep your promise and pay it back. If you don't, the bank has many ways to get its money back from you. These tools include the ability to report that you didn't pay back your loan, making it hard for you to borrow from anyone else.
When you miss a loan payment, your lender will report it to the credit bureaus. Typically, this happens when you become 30 days late. Having a late payment on your credit will probably make your score go down. If you have very good credit, it could easily drop by 100 points or more. This can make it harder, more expensive or both to get more credit in the future. While it will usually take seven years for the late payment to drop off your credit report, you can fix the problem and bring the loan up to good standing by making your missed payment.
Eventually, the bank will give up on your loan. When it does that, it usually turns your loan over to a collection agency. This does more damage to your credit report. In addition, while your bank was probably calling you and sending you letters, the collection agency may be even more aggressive in pursuing payment from you.
Collateral is Subject to Repossession
When your bank loan has collateral -- like a car loan that is backed by your car -- the bank can eventually seize the collateral. The time frame that the lender has to take the collateral varies based on your loan agreement and your state's laws. Unsecured loans, like student loans or credit cards, don't have any collateral, so the bank can't seize anything directly.
Eventually, either the lender or the collection agency may decide to sue you in court. If it is able to win its case and get a judgment entered in its favor, the court will get involved in helping it collect the debt. The court can make your employer divert wages to pay off the judgment, pull money out of your bank accounts or sell your property even if it wasn't pledged as collateral. If you don't comply with the court's requirements or show up when you're supposed to, it could even issue a warrant against you and potentially have you arrested.
When you owe money to a bank where you also have a checking or savings account, it can seize that account. This power is referred to as the bank's right of set off, because it can use your money to offset the money that you got from the bank and didn't pay off. The right of setoff can put you in a tough situation, because the bank can simply grab your balance, making any checks that you have written against it bounce.
Steve Lander has been a writer since 1996, with experience in the fields of financial services, real estate and technology. His work has appeared in trade publications such as the "Minnesota Real Estate Journal" and "Minnesota Multi-Housing Association Advocate." Lander holds a Bachelor of Arts in political science from Columbia University.
What happens If I do not pay PayPal negative balance?
I use to own a Minecraft server, this kid use to play every day. He donated $100. I asked if it was his mums paypal / credit card and he said no. 1 months later he chargedback for "unauthorised payment" Currently its at $340. I can't sleep or think. I need to know what happens, if my parents find out and they need to pay for one I'll feel very guilty. Please, I need answers.
So he paid you 100 so that he can play your server? But then he charged you money because he thought that your charging him 100 was unauthorized? I'm not sure if this is what you mean but if you both agreed that he pay 100. Then you need to meet him again face to face. During your meet up face to face, MUST call paypal company and speak to an agent and resolve all of this out. Of course if you know hes hiding something, don't tell him that you're gonna call paypal when you both meet.
If he was not supposed to charge you 340, then tell paypal that. Or if you can't resolve it, tell your parents. They should be able to know what to do
You can ruin your parents credit if it is attached to their PayPal account. Tell them now instead of lying through your teeth when confronted.
PayPal Credit (formerly Bill Me Later)
Based on 52 ratings out of 446 reviews
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A transaction on my credit account triggered security and therefore did not go through. When I called in to see what the problem was, I answered a number of security questions to prove that I indeed was the account holder. I was told the transaction would now go through. It did not. I called back again and was told that due to the trigger, I would not be able to complete the transaction, and I could not be told when my credit would be available again. This put me in a terrible position since I was already in possession of the item, based on being told I could now complete the transaction, and now had no way of delivering the funds. When I spoke to a supervisor I was told there is no way to override the security trigger. This is unacceptable. To not have a solution to this problem is lazy and shows little effort to consider the customer's situation.
The one solution I was given was that I could cancel the transaction. Cancel the transaction on an item I had been searching for 6 months, and drove 3 hours to get? Not to mention the security trigger was due to my lack of PayPal credit history. I have "Excellent" credit. My credit history is exactly what was checked prior to giving me the account. Why do you need your own set of data to determine if you can loan me money? Like I'm going to blow two decades of building credit for $3k on a PayPal account. I don't know how I could ever use PayPal credit in the future or recommend it to anyone else, especially when there are so many other outlets available now. Not only do I not understand why a resolution could not be reached, but this entire situation made my life unnecessarily much more complicated in the short-term.
This is a huge scam and something needs to be done. I tried to purchase items and had to call their customer service account 4 times. One Rep hung up and couldnt explain if I was approved for $2500. Why couldnt I use this "card" all Reps said we have to build a relationship. After finally speaking with someone in the USA I canceled the account! This is a complete SCAM.
This doesn't even deserve 1 star! I have been on the phone with them every day because I have been approved with PayPal Credit, after going through all the security and finally getting my credit line released. They told me I can now start using it. Now I have been trying to purchase off of my credit line and it will not let me. Everything I try declines. From $5 to more expensive. They said add a bank account. Did that still nothing! They said add a debit card. Did that still nothing! Now I have to find a different way to purchase my merchandise. I would have not applied for credit if I had the whole amount in my account! This is ridiculous. PayPal Credit workers are amazing but PayPal staff that you have to deal with for customer service is horrible and NO help.
After more than 8 years with this bank off, and on, I reopened an account under Paypal Credit. During any promotional purchase which is billed with interest after 6 months - to 2 years; just say if the item you purchase is returned, Comenity Bank does not refund your money, it stays on your account as promotion; which means you still pay the interest even though you don't have that item anymore. Isn't that illegal?
Another consumer unknowing travesty they commit is once you setup your Paypal account they do not allow you to change your payment date at all. Not even to change it from the first of the month to the middle for the necessity to those who get a paycheck once a month from their jobs.Therefore if you think you will start an account with Paypal Credit then change the date you are to pay them - don't get involved. Stay away. I sell quite a bit online, and I purchase online therefore PP line of credit is convenient for most transactions. However this bank is doing some shady stuff; believe me!
I opened a PayPal Credit account when I was just starting out around 18 years old. I've had it for about 5 years and I've never had problems with being able to make transactions. That said, I've never really tried to use PayPal credit outside of online purchases. I primarily used it for eBay and certain other online retailers. The PROBLEM with PayPal Credit, aside from a steep interest rate, is the "Bill Me Later" option. In other words, when you use credit rather than your PayPal balance. ESPECIALLY on those "no interest for 6 months" charges. Because what they don't tell you is that, when you pay your balance, the first thing your payment goes toward is the no interest charges. That is, you're NOT paying off the balance that DOES have interest. Thus, the interest on the rest of your balance continues to climb.
Now, that's not an issue if the only charges you make are the interest-free ones. But if you make some small purchases here and there with the credit, then you can get into trouble that way. And it's hard to get out once you do that. It would be a very different experience if the payments went toward the part of the balance that is gaining interest. But that's not the case. So be wary.
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I feel that I not satisfy with your billing system. I feel that I have been overcharge on items and charge when I did not receive everything. Also every time I try to call customer service I online for at least 10 to 30 minutes in waiting time. I deeply appreciate if this company can contact me by telephone or mail in looking into this matter.
SO. A resort timeshare highly recommended PayPal Credit (Wyndham Resort Development Corporation out of Orlando, FL) for a purchase. I received a generous credit line, only to find out that they (PayPal Credit) can pick and chose who you can use this credit with, it is truly NOT a credit line at all. After reading the reviews on this merchant I will be cancelling all accounts with both companies, as something simply does not appear to be on the up and up. Who grants credit and then tells you who you can and cannot use the credit with? Also they NEVER directly spoke with me personally at all, yet allowed Wyndham to setup and make a high dollar purchase on my account. Crazy.
Applied and was approved for a credit limit solely to use to purchase a mattress via an online mattress company, credit limit was OVER the amount of my purchase price of the mattress and was declined- PayPal said since I was not an established customer with purchase history I would need to me "multiple small purchases over the next months" before I can use MY OWN LINE OF CREDIT for a larger $ purchase like the mattress purchase. I called the mattress company and made a complaint stating that should not be advertising a credit company on their site that won't even let customers purchase their product if they are not established customers.
I quickly closed my line of credit because what is the point if I have to buy things I don't want just to be able to use it for a 1800$ mattress. Before you apply thinking you will use it for a large purchase beware the customer service rep will say "we reserve the right to approve or decline any purchases per the credit agreement." I don't need a credit limit with these type of stipulations.
I responded to a PayPal email promotion of 2 yrs 0% minimum payments. even went through the email to shop. Looked my statement up. It kept saying 6 month 0% so I called PayPal. They kept saying wait 48 hrs. After 3 days I passed time I could return the item and PayPal says I don't qualify for promotion because at checkout I didn't hit 2 yrs 0% box. I never saw that box and I went through they email promotional box that said let's shop!! Customer service says they can't help. Their manager says they can't help. What could is being a manager if you change something one of your subordinates did. So now I'm writing letters for arbitration. wish me luck!!
Problem 1. The PayPal Credit account was set up without my knowledge or agreement. Problem 2. A charge was made. No one at PayPal could ever tell me what the charge was for. Problem 3. They continued to send bills and denied my dispute of charges claim, when they still couldn't tell me what it was for. Problem 4. They referred it to collection, where they also could not tell me what the charge was for. Problem 5. Over the course of a year I had to call them multiple times, and call a collection agency, and call them again before I reached someone competent to tell me exactly what the charge was. Though I never authorized them to do so a purchase that should have gone through my bank account was instead paid by PayPal Credit. That's where it all came from. In the end I paid twice the value of a minor purchase to end the business once and for all, the time and energy wasted on their incompetence and shady practices: PRICELESS.
I received a letter in the mail from collections for $147. In investigating it turns out that my PayPal account which is linked to my checking account was switched to using PayPal Credit. I never switched that. I called PayPal and asked them how that happened, and why PayPal Credit statements were not being sent to my preferred email address. They could not answer. So PayPal Credit changed my preferred payment method, failed to send their statement to my preferred email address, and then assessed my account late fees and interest of $48 (on $99 purchase). It's worth noting that I also never opened a PayPal Credit account and only ever used my PayPal account which was maintained in good standing since 2006.
I immediately called PayPal Credit and paid the outstanding balance and closed the account (the letter I received said my account was closed already but apparently that was false information as well.) Once I closed that account I called regular PayPal to close that account too because at this point I don't trust either company's business practices. PayPal said they can't close my account because I have an open PayPal Credit account. I spent 2.5 hours calling back and forth and escalating the issue with no success. PayPal finally told me to try back in a couple days and see if I can close the account then. That is where I stand, waiting 3 days to try again to close an account which should be as easy as a mouse click. I feel cheated out of $48 dollars and so far 2.5 hours of my time. I feel like a financial company like PayPal and/or PayPal Credit should be regulated a little tighter than this.
So I have been had an account with PayPal for years. And has always made my payments on time. This one time on the due date I call them up to discuss something that I never received. So after the lady was done with assistancing me with that I asked could she take a payment for me and she stated yes. So I promptly given her my acct. info and noticed that it wasn't showing an pending payment. So as hrs. went past I called back to check on the previous payment that I had made over the phone with someone. They told me that it would take about 2 business days since it was coming through my checking acct. I informed them at that time I have never encountered this procedure to perform like this before. But, I rarely wait till the due date to pay and generally pay it online, with my PayPal acct.
I feel that this was done intentionally especially, when days went by for me to discover that I had an late fee. I was so upset especially when I know I set up a payment over the phone with an agent. So I was told that the info that she had gotten was rejected. However, I have always used my prior billing info in the system. They then sent me through different channels of speaking to different people. Until, I finally gotten an supervisor after 2 hrs. later. Telling me that she does see the payment information not to be matching mines prior. But, to allow her to listen to the call and contact me after 2/4 business days or they will call me. What some B.S.
So I made a payment myself through the Paypal app. I'm still pissed because I should of never had this outcome especially with a PayPal representative. Although I realize mistakes do happen. I feel this is ridiculous especially when I'm telling the representative that my payment method is the same and is in your systems. And I verified the info twice. I'm just not satisfied with how I was treated as a number vs. An consumer.
I am very dissatisfied with PayPal. Every month when I try to pay the bill there is always a problem e.g. I can't log into the website, they try to debit from the wrong account and so on. this has to stop.
I appreciate companies that use solid security practices, but PayPal Credit (Comenity Capital Bank) and PayPal itself have made my credit account useless due to it being flagged every time I attempt a transaction. Every time I go to make a purchase online using my account, or send someone money, it is denied. This in turn requires a phone call to them, which typically involves a wait, for a total of 30 minutes on average. Every time they say it is due to a security flag on my account. Half the time they verify my identity using public record, at which point I can re-attempt the transaction and it might goes through. The other half of the time there is literally nothing they can do because they cannot override their computer system when the risk level is high. They just say I have to "wait", with no time specified. This is not OK.
This has now required 9 phone calls to them. It often ends up in a finger pointing match between PayPal Credit and PayPal. No one can tell me why my account keeps getting flagged, and no one can fix it permanently. I appreciate security but they have verified my identity so many times now, they know my life story. So essentially, my credit line is useless because it's a shot in the dark each time I try to use it, whether it will work or not. What use is a credit line if it doesn't work regularly, despite having thousands of dollars in available credit? Mind you, these are allowed transactions I'm attempting to make - nothing shady - things like booking hotels on Priceline, or repaying a friend by sending them money.
I would not recommend applying for or using PayPal Credit through Comenity Capital Bank at all. It has become too much work, and I have wasted too much time trying to resolve these issues, and no one can permanently fix the problem. On the other hand, the PayPal Extras credit card issued through Synchrony Bank is excellent (not to get the two products confused).
My PayPal statement are wirelessly sent to me and immediately paid ahead of the due date. The last half of 2016 I made two purchases from two different vendors. Products arrived. I believed I had used PayPal (the real one). Around the first of 2017 I started getting robotic calls which merely stated on my phone as wireless caller. I began to notice that they came every day at the exact same time. So I decided to call back to stop the annoying calls. When I listened to the message it stated my name, that this was a call to collect a debt, and that I could pay on the phone. No way would I ever do that.
Several weeks later I figured out a way to get past the robo call and talk to an actual person. I found out that it was PayPal credit and that I owed a couple hundred dollars. I explained that I had never received a bill from them. When I asked where were they sending the bill, they said it was to my physical address. I told them that I don't get mail at that address and that my mail always comes to a PO box. I live in a rural area and don't get mail delivery at my farm. I told them I would be happy to pay for the items if they sent me proof of what the items were and the charges. I gave them my PO box. Within a week they sent me the charges for two items plus a pile of interest charges and late fees. I called and told them I am glad to pay for the goods, but "no" on the other charges. I told them I had no notice previous to the robo calls. They said that I owed the money. I stated that I didn't.
Now three months later I keep getting the same bills less the items for which I sent the money to them. They finally sent the next bill less the charges for the items, but still want the rest. I said I wouldn't pay and have their legal dept. call me. So far no call, but I got another bill. Please note that every time I call I have to keep going through the same story and no matter how many people I'm transferred to I have to state the same story over and over. I would have given PayPal credit no stars, but that wasn't an option. I WOULD NEVER RECOMMEND PAYPAL CREDIT TO ANYONE.
I called and asked to set up a payment arrangement to get caught up over the next couple months as I unfortunately fell two months behind. In the past any credit company has always been able to assist. Their responses was "You aren't eligible." I asked, "Well how do I become eligible?" and they said they don't know but their computer will tell them and it could be 72 hours to 3 months but they have no idea. meaning there is zero company policy nor help. The guy advised to keep calling every 3 days. Who has 25 minutes to wait on hold every 3 days to check and see if their computer has told them I am eligible?
I opened a PayPal credit line and was given a $500 limit. Each month I would access PayPal directly and check out my statement to make the payment directly via my checking account which I had attached to my PayPal account. Upon opening the credit line, I had to give my physical address which I do not receive mail at, but I receive mail at a PO box instead. I had always received correspondence via email and during the time that is in question, 2.5 months to be exact, I received 98 emails from PayPal.
I paid my account each month before the due date for my minimum payment but usually paid over the minimum requirement. In February 23, 2017 I paid my account in full. March 2nd 2017, I attempted to make an online purchase utilizing my PayPal credit line in which I was denied stating my account had been closed due to a returned account statement. Upon calling and speaking with customer care I was notified that they had been sending statements to my physical address because their computerized system had opted to change my automated billing statements to mailing statements because I had not opened their statements via email according to their computer records.
I asked the manager whom I asked to speak with if I'd ever missed a payment which he replied no. I asked him to clarify that he was telling me he was informing me that even though I was an active customer who had made timely payments, and paid my account in full, but because of not accessing a statement sent by a computerized system they had closed my account without notifying me. He responded this was accurate and there was nothing he could do. Basically being proactive and seeking out my account statements on my own has caused PayPal to punish their customers because they have no level of personal connection.
PayPal Credit is the worst credit line you can ever get mixed up with. Jan 2017, I make my payment as usual. Well as February approaches I realize I have enough money to go ahead and pay my PayPal bill 2 days early. So I go ahead and pay the $304 to get that bill out the way. So here we are in March. Bill is due I log in to see what the minimum payment is, it shows $608 is due. So I call to find out how this is because their website sucks. You can't get details. I'm told that they never got a payment in February. So wait. They really thought I wanted to just give them an extra $304 two days from when my bill is due.
The customer service rep tells me "since you paid before the interest cycle was up that money went to the principal." Nobody ever gave me an option of if I want this on the principal or to go towards my normal payment. So you mean to tell me I have to wait the entire interest cycle so PayPal Credit can rip me off charging 20% for 30 days. It's bad enough they already got me like that but to take the $304 I gave them two days earlier put it on the principal with no notification just confirmation that the bill was paid. Now March comes and you're telling me I didn't pay you in Feb so now I owe you $608. What the. How is this even allowed? The best part is the customer service rep tells me well "it's good you paid early cause it made your principal go down." I told her that only dropped my bill $3.
I've been receiving someone else's PayPal Credit billing information in my emails for about a year now. Every time I call PayPal Credit they ask me for my personal information but my information doesn't match this other person's information so they will not remove my email from her account. Please help!
I have a PayPal credit account. It started when I got a 300.00 credit limit. It said you can purchase goods, services, or send money to family or friends. Please be aware the webpage setup is designed where one may easily lose double what they may use from the available credit. We know, as sellers they already have your bank info, and automatically, funds come from this when due. I wanted to send money to my family member and went to credit section and clicked for the transaction and it acknowledged the action. “This is the first red flag,” the section above credit is to use your bank account funds to process the same type transaction. If a person knows they do not have available funds in their bank why risk an overdraft? The site will automatically take you to a page to reconfirm your initial transaction but not acknowledge whether or not it was your first choice. If you were sure you said from credit it should process but the "final red flag."
Maybe it said you chose an irreversible transaction, which is withdrawn from your bank. The next day I saw PayPal took money from my checking account. I called bank and reported this was an error and bank stopped transaction. PayPal said, "Have person send you the money back," and I did and deposited it to my checking account as a result of the error and my bank refunded me overdraft fees. At this point the credit I had available has never been used and PayPal tells me, "You owe us the money for your checking account." They refuse to withdraw the amount.
I initially requested from the credit account, this I am told cannot be reversed. They are trying to get double when in reality I only got the initial amount $125.00 plus the fee and will have to go to small claims court on this one. I sent all documentation requested. Their webpages have problems too, seems preprogrammed and will fail to load sensitive information you need and send you back to login numerous times. Forget passcode to speak with specialist, you may be on phone over an hour or sent person to person with little headway. I was not behind in my monthly credit payments. Anyone out there have a similar problem?