I have -$700 in my PayPal, what can they do if I don't pay it?

Back in December I sold an item that was obviously real and legit, due to it being a virtual item I was not able to back up my proof against a charge back filed against me (no tracking number or anything), the money that was sent to my account isn't in there anymore and is now -$700, I don't see myself ever paying back debt that wasn't my problem, I saw it coming and removed my bank and card before I was CB'ed, will paypal be able to do anything if there's not a linked bank or card? I'm not in the wrong at all and was falsely CB'ed and now charged for something I never had anything to do with, opinions would be awesome, or if anyone has ever been in the same situation in the past how did it go? I don't mind ever using PayPal again it's a horrible site that doesn't protect the seller at all, what are the consequences?

I'm aware that collectors may come after me, say I pay half back will I still have people on my ass? Should I just ignore the collectors?

 

You will pay 3x more on collection firms. Contact paypal and ask them to pay the negative balance in one year like $50-60 monthly.

 

That's the cost of using Paypal.... I don't accept large payments thru them, just Western Union, etc.

 

Not sure where you are based, but in the U.S., once PP turns it over to a debt collector and they try and fail to collect, they will be able to hurt your credit score with the bad debt information. This will hurt you if you try to get a mortgage or any other type of loan in the future. Some hiring companies also do a credit check before hiring certain employees, so it could hurt you there, as well. As you now know, Paypal is not a good solution for many sellers because it enables scammers in a big way.

 

It really depends on where you are. In the US they have your social security number. The right to collect will likely get sold and maybe resold and a collection agency will come after you. Once you approach the statute of limitations, they will likely file a lawsuit and if you move they will serve you by publication and you might not know about it until you try to buy something on credit. Then you will discover you have a judgment against you for not not $700, but for $4,000 or something in the neighborhood. They don't expect to get paid in most cases, but they know they can screw up your life and they do it to make an example out of you or anyone else, so you will fear them. That is just the way it is. If you file bankruptcy then poof all liability is gone, but then you will be unable to buy on credit for 7 years or more. If you live in a third world country where there are no clear cut ways of tracking you, where your name is as common as the stars then you are probably safe.