There is a negative balance on my friend's Paypal account. He's worried because he has heard that Paypal can pursue legal action against him, as he doesn't have a method to pay his debts. Apparently his initial transaction using a debit card was approved and Paypal updated his account with funds to transfer to the recipient, but then Paypal realized that my friend definitely didn't have enough money. He then proceeded to cancel his debit card. We're talking a couple grand here, so is it time for him to get a lawyer? Or since there is no way for Paypal to charge him without confronting him, will he just fly under the radar? Is there some kind of point at which it becomes worth it to pursue him? Thanks for reading, and sorry for this being the first thing I post.
Sounds like he defrauded them to me. Yes, they will pursue him legally, and maybe criminally if they can prove fraud.
ok... let me see if I got this right. 1. so your friend wanted to put some of his own money into paypal to pay someone else? ok that sounds fine to me 2. he didnt have enough money? ok, so why was he trying to transfer more then he had? ok but fair enough, mistakes do happen, as well as sometimes bills go in on odd days etc. 3. when it was discovered he didnt have enough, why doesnt he just fix up the mess? doesnt matter if its a couple of grand or not, he hasnt lost anything at all as they are only chasing him for he amount that he already agreed to. Doesnt matter if they can chase him or not. the right thing to do is to fix up the mess. Besides, wont 'your friend' ever need a paypal account in the future?
I don't even understand how this happened, because they won't transfer money from my bank into my account that isn't there. The only way I can see it happening is if he had outstanding checks that overdrew his account before the transfer went through. The whole scenario sounds fishy.
How much are we talking here? I don't think paypal will sue him. Did he receive an email or a message from paypal regarding filing a case?
PayPal is not going to sue him for two grand so easily and quickly except if he defrauded them and even at that, he will be given some grace period. He should start paying as little as he can.