If PayPal Collections has shown up on your credit report, it could be dragging down your score. Here’s what you need to know—and how to remove it if possible.
Why Is PayPal on Your Credit Report?
PayPal Holdings, Inc., based in San Jose, California, is a global company that offers digital payment services. Many people use PayPal to send or receive money, shop online, or access PayPal Credit.
If you see PayPal listed as a collections account, it likely means you’ve fallen behind on payments. This could be tied to:
- Your PayPal account balance
- A PayPal Credit account
- A PayPal-branded credit card
Once an account goes into default, PayPal or a third-party collector may report it to the credit bureaus.
How to Remove PayPal Collections From Your Credit Report
A collection account can damage your credit score for up to seven years. But there are ways to fix the situation:
- Dispute inaccurate information: If the account details are incorrect or the debt isn’t yours, file a dispute with the credit bureaus to have it removed.
- Request debt validation: You can ask PayPal or the collection agency to prove the debt is valid and the amount is accurate. They must provide documentation if requested.
- Negotiate a pay-for-delete: Sometimes you can offer to pay the debt in exchange for having the account removed from your credit report. Always get the agreement in writing.
- Work with a credit repair service: Credit repair companies can challenge negative accounts on your behalf, making the process easier.
Ready to Clean Up Your Credit Report?
Learn how credit repair professionals can assist you in disputing inaccuracies on your credit report.

Should You Contact or Pay PayPal Collections?
Before reaching out, double-check your credit report and verify the debt. Errors happen often, and paying a debt without confirming details can restart the clock on how long it affects your credit.
If the debt is valid, you can explore settlement options. Many people choose to work with a credit repair company to handle these situations and avoid direct contact with collectors.
Can PayPal Sue or Garnish Wages?
Yes, PayPal has the legal right to sue for unpaid debts. If they take you to court and win, they may be able to:
- Garnish your wages
- Freeze or levy your bank account
- Place a lien on your property
Lawsuits and wage garnishments are usually last-resort measures. Most companies will attempt to contact you and arrange payment before escalating the situation.
Common Complaints About PayPal Collections
Many consumers have filed complaints against PayPal Collections with the Consumer Financial Protection Bureau (CFPB) and the Better Business Bureau (BBB).
The most common complaints include:
- Inaccurate credit reporting
- Harassment or excessive phone calls
- Failure to properly verify debts
If you believe your rights have been violated, you can file a complaint with the CFPB or BBB.
Know Your Rights When Dealing With PayPal Collections
You have legal protections under the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). Here’s what those laws guarantee:
- PayPal or their collectors cannot report false or incomplete information about you.
- You have the right to request written proof that the debt is valid.
- They cannot harass, threaten, or use abusive language.
- They must clearly identify themselves as a debt collection agency.
- They cannot threaten arrest or legal action they aren’t authorized to take.
PayPal Contact Information
Address:
PayPal Holdings, Inc.
2211 N 1st St.
San Jose, CA 95131
Phone: (402) 935-2258
Get Help Removing PayPal Collections From Your Credit Report
Tackling collections like PayPal can be stressful, but you don’t have to do it alone. Credit Saint has helped thousands of people remove negative accounts from their credit reports.
They’ve been helping consumers for over 15 years—and they even offer a 90-day money-back guarantee for extra peace of mind.
Ready to see how they can help? Visit their website or call (855) 281-1510 for a free consultation.

Brooke Banks is a personal finance writer specializing in credit, debt, and smart money management. She helps readers understand their rights, build better credit, and make confident financial decisions with clear, practical advice.