Why not to leave your card details linked to a debt in PayPal

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.

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Source : redd.it/3794qs

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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.

One comment

  1. I have had interesting things along those lines with banks nevermind just paypal.

    I was with O2 for years, and I changed my “pay monthly” contract to a lesser value one. I was paying £30 a month at first, and changed it to like a £5 package. Though next billing month they charged me £30 again. I complained about it and they said it won’t happen again. But the month after I got billed £30 again.

    Though as I wasn’t expecting £30 to go out of my bank account, I only had £25 in there. So I ended up with -£5 in my bank account. This is where it really turned into chaos. I actually noticed I was £5 in the red, and put £10 into my account to put it £5 in credit.

    Only the next day TSB, because I did not have a overdraft setup, TSB charged me £30 for going into the red. Unfortunately, that payment itself then put me in the red by like £25. So I put in £30 into my account, but then I got billed again because TSB themselves took the payment from my account, and them themselves put me in the red again. This actually went on for several months before I worked out what was going on.

    Problem is, once O2 put my bank into the red. I got charged for it. So when I added more funds in to cover the O2 payment, TSB already had it in the pipeline to bill me £30 for unauthorised overdraft. Though each time I paid in £30 to cover the charge, TSB would bill me again for the previous month, then I would go back into the red again. It really was messed up.

    In the end I paid in £100 into the account and after all the charges I wasn’t left with much left in the account. So TSB actually ended up costing me over £200 in charges because I couldn’t pay the charges for the previous month.

    I pointed this out to O2 and amazed actually that they said they would refund me the full amount I was billed by TSB, if I could take bank statements into my nearest O2 shop. The kicker here is, I had just come out of hospital after a small operation and I couldn’t actually walk for some weeks, never mind drive my car to the O2 shop. So by the time I could visit the shop, it was 2 months later.

    This was actually some years ago now, but you simply can’t trust any company with your credit or debit card infos. It gets worse when banks are quick to bill you for anything they can think of, even if its not your own fault.

    These days I always keep £200 minimum on my bank balance, and I always pay my credit card bill every few days. As I get billed for “missed minimum payments”. Which only really happens when their site fucks up and I can’t login to pay my credit card bill on time. Similar with other company’s, they screw up and the customer gets billed for it.

    Banks really make me laugh. When they ring up and ask me to take out a £200 a year contract to save money on parts for my car. I said how does spending £200 save me money on parts ? Apparently it does, but I never figured it out. I don’t normally spend £200 a year on parts anyway. Spending £200 to get a discount on parts, like WTF ?! Surely it would be better to keep the £200 and actually spend it on the parts. I did point this out to the women who rang. She couldn’t understand how I wouldn’t want to save money on car parts. Like how does spending £200 MORE on my parts bill, save me money ?!

    The last time they rang me was a similar type BS phone call about saving money on something. I said I’m not interested even before she had finished explaining it. She got in a bit of a strop and asked me why I wasn’t interested (I assume she had been told to sod off a few 100 times before me)…

    So I said, because, while I am paying this money, when you screw up the billing at some point, I will end up getting charged £100’s in fees. Which is the only reason banks do these rip-off deals. Window dressing to make it sound like its saving people money, when in reality, its costing the person more, and if they miss a payment or the bank themselves screw up, like not being able to pay on time because the website isn’t working, then how does all the stress and charges result in saving me money ? I would sooner not get a 3rd party involved who has direct access to my bank account. IE YOU. and I know it happens as I got charged £100’s in charges over something which wasn’t my fault in the past so sure as hell not going to trust you again.

    Good thing is, they never rang back after that. Well she wanted to know the reason why.. so she got told good and proper 🙂

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