Heres a example showing why you should not leave PayPal with any valid bank details if you have a issue with them. In this example the problem is basically the user had a $4 subscription with PayPal for some online service or other, but the user had a list of disputes on going and when was all said and done owed PayPal $1,120 which they could not get at until they went to debit the $4 sub… you can see what happens next PayPal not only take that $4 but the whole $1,120 on the back of it. So beware.
Source : redd.it/3794qs
So yeah, this built up over a bit of time, but culminated today.
I had a loan running through PayPal. It was supposed to be paid back a while ago, but due to a couple of disputes running my account was pretty far in the red. After the disputes were done and PayPal had done their things with them, I won one and lost one, so my account was in total just over $700 in the red.
To settle the loan that I was late for, it was agreed that the lender would recover his funds through a dispute, where I would simply stay quiet so he’d win it. Easy enough, and he won as expected. This left my account in total of $1,120 in the red. This is of course not good, but it’s possible to work with PayPal when they send this to their “collections”, and I budgeted a nice $100 per month for paying it off.
So here comes the major FU…
I have a Spotify, WWE Network and Stardock Software Object Desktop subscription. Spotify and WWE Network goes through my Visa debit card, so no problems there. The subscription to Object Desktop however, was set up through PayPal for a reasonably low $3.99 per month. Today was the day that it was time to get paid, as it was set up to be the same as my salary day. I’m guessing some of you see where this is going….
Apparently, since my Visa card was connected to my PayPal, it’s set as alternative funding automatically. Now, when my PayPal was in the red for the last payment, it was over $2,000 in the red. Even though my salary had come in, my rent, electricity and Internet bills were paid, so there wasn’t that much in my checking account. So the payment last time was rejected, I went in and paid a once-off by Visa and problem solved, the subscription continued.
Today however, with my PayPal $1,120 in the red, and Stardock doing as they should and tried to use automatic PayPal payment, there was enough.
My Object Desktop subscription for this month took $1,123.99 from my bank account.
My PayPal balance is now 0.00.
I, however, need to figure out a way to both pay my rent and eat for the next 30 days.
So, dear Reddit, TIFU.
TL;DR: I didn’t do my thing, PayPal disputes did their thing, Stardock did their thing, $1,100 later I’m looking for discount Ramen.
Edit: Well this blew up way more than I expected.
Look, I’m not looking for any sympathy here. I fucked up, and I know full well it’s all my fault. Not much to do with that at this point.
I also appreciate the advices posted. As I’m not in the US, most of it doesn’t apply though. Apart from the fact that I need to continue to work to get my finances straightened.
And to clarify, I was not trying to rip off neither PayPal nor the lender mentioned. The lender, a private person, got his money back and I would pay off the negative PayPal balance in monthly payments. Nothing illegal about that. It didn’t happen in monthly payments though, but in one big one. And that’s the end of it.