PayPal Collections


Is PayPal Collections hurting your credit score?

Schedule a free credit consultation to find out how you can eliminate inaccurate and questionable negative information from your credit report.

Who is PayPal?

PayPal Holdings, Inc., headquartered in San Jose, California, is an American company that operates an online payments system in multiple countries worldwide. It serves as a convenient electronic alternative to traditional paper methods like checks and money orders.

If PayPal appears on your credit report as a collections account, it suggests you’ve defaulted on payments. This could be related to your PayPal account balance, a PayPal Credit account, or a PayPal-branded credit card.

How can I remove PayPal Collections from my credit report?

PayPal collections can hurt your credit score and remain on your credit report for up to seven years regardless of whether you pay it or not. Unfortunately, paying the collection could even lower your credit score.

However, it is possible to remove a collection account from your credit history before seven years.

(While debt collectors may not want this information to be widely known, it’s your right to be informed.)

Ready to Raise Your Credit Score?

Learn how credit repair professionals can assist you in disputing inaccuracies on your credit report.

Professional credit repair services work with people who want to get their credit back on track.

In addition to collections, they can help you to challenge other inaccurate, unfair, or unsubstantiated information on your credit report. These items include inquiries, late payments, charge-offs, foreclosures, repossessions, bankruptcies, and more.

Get started on the path to better credit today: Fill out the form for a free credit consultation.

PayPal Contact Information


2211 N 1st St.
San Jose, CA 95131

Phone number: (402) 935-2258

Should I contact or pay PayPal?

Before contacting a debt collection agency, verify that the debt is legitimate and accurately reported. Sometimes, credit reports contain errors or list debts that are no longer valid. Also, be aware that making payments on a debt can reset the clock. As a result, it could harm your credit rather than improve it.

The most effective way to deal with PayPal collections is to work with a credit repair professional. They help remove millions of negative items every year from companies like PayPal on behalf of their clients.

Will PayPal Collections sue me or garnish my wages?

PayPal, like any creditor, is entitled to take steps to collect money owed to it. If you have a significant outstanding debt, it is technically possible for PayPal to file a lawsuit against you to recover the funds.

If PayPal wins the lawsuit, they could potentially obtain a judgment from the court, allowing them to garnish your wages or take other actions, depending on the laws in your state.

However, it’s essential to note that lawsuits and wage garnishments are generally seen as last-resort measures. Before resorting to these actions, PayPal, like most companies, would likely attempt to contact you to arrange a payment plan or seek other forms of resolution.

PayPal Collections Complaints

Most collection agencies have numerous complaints filed against them with the Consumer Financial Protection Bureau (CFPB) and the Better Business Bureau (BBB). Most consumer complaints are about inaccurate reporting, harassment, or failure to verify a debt. If a debt collector is harassing you, you may want to consider filing a complaint.

You have many consumer rights under the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). These rights include the ability to dispute credit reporting errors and to be treated fairly and respectfully by debt collectors.

Your Rights When Dealing with PayPal Collections

Debt collectors must abide by state and federal laws in the United States. For example, the FDCPA prohibits a debt collector from using abusive, unfair, or deceptive practices. In addition, it provides you with many rights to ensure that collection agencies don’t take advantage of you. In particular:

  • It is a violation of federal law for PayPal Collections to report inaccurate or incomplete information about you.
  • You have a legal right to request debt validation on an alleged debt. Send the collection agency a debt validation letter. By law, they have 30 days to prove to you that the debt is really yours and the total amount is accurate.
  • PayPal Collections may not threaten or harass you, call you repeatedly, swear at you, or publicly publish a list of debtors.
  • PayPal Collections must be honest about who they are and what they are attempting to do. They must notify you that they are a debt collection agency both orally and in writing.
  • PayPal Collections cannot threaten to have you arrested or imprisoned over unpaid debts.

Remove PayPal Collections From Your Credit Report Today!

Credit Saint can assist you in disputing PayPal collections. With years of experience at their disposal, these professionals have a proven track record of effectively removing incorrect entries for countless clients.

If you’re tired of dealing with debt collectors and want to improve your credit, consider working with a trusted credit repair company.

They have helped many people in your situation. Fill out the form on their website or give them a call at (855) 281-1510 for a free credit consultation to see what they can do for you.

Ready to Repair Your Credit?

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Meet the author

Crediful is your go-to destination for all things related to personal finance. We're dedicated to helping you achieve financial freedom and make informed financial decisions. Our team of financial experts and enthusiasts brings you articles and resources on topics like budgeting, credit, saving, investing, and more.