It’s a limited company. PayPal accounts just have an agreement when you sign up I guess. No signatures made for the PayPal accounts created. One of the accounts is under a trading name rather than the LTD and emails are addressed to me personally. It is a business account though. It’s up to the DCA to hold the directors responsible or the company. The liability only disappears in event of liquidation I think and we won’t be liquidating anytime soon.

Thanks for the help. I will keep you lot posted on what happens. Currently balances are still with PayPal and haven’t been passed to a DCA yet - I’ve paid the Working Capital facility off in full as it’s a form of credit. Everything else will be ignored and I will concentrate on paying priority UK creditors and HMRC.

Don't think I'll let the Working Capital run though. Best to pay that directly with PayPal ASAP

I’m confused. I don’t use/never have used eBay, this is all PayPal related

Thanks for the info. I never mentioned eBay though, are you referring to PayPal?

I can certainly ignore letters, calls etc. The issue is when they send doorstep collectors. I know they’re not bailiffs and cannot enter but it’s a bit embarrassing isn’t it? I’m sure if the company is motivated enough they would send collectors

So if and when it gets to that point the DCA will still happily negotiate and accept an affordable payment plan? The company owes £40k across legally binding creditors like NatWest and Funding Circle so I’d rather focus on these.

I think if PayPal sell the debt that makes it worse as the DCA are making it a credit agreement. If the DCA work on behalf of PayPal on a commission basis then it’s not as serious. I do believe with the pending PayPal UK switch this has gotten much worse and they could potentially take legal action.

PayPal Working Capital just has an Agree and Continue button when you enter the company officer details. The business operates on a website and accepted PayPal payments. I didn't sign anything on WC Just got this also: On 1st November 2023, your account will move from PayPal (Europe) to PayPal UK Ltd. Visit our FAQ page to learn more.

Yeah makes sense One was opened in 2017, the other in 2021 - does this affect anything?

Hi all, Recently a series of direct debits failed as a result of insufficient funds in our bank account causing negative balances across two PayPal accounts of -£18k and -£5.5k. I have reduced the first balance to just under £12k but haven't touched the other account. It has been roughly 2 weeks since the accounts went negative and PayPal advised there is nothing I can do and the amounts are automatically passed to DCAs. I have seen similar threads due to gambling etc but obviously these are personal situations and in my case it's a business liable. One of the business accounts is under a relative's name even though they aren't a director of the company - does this situation affect them? There is a balance of £500 from PayPal Working Capital and the system won't let me pay it due to a negative balance. As far as I know, negative balances are not a form of credit so cannot be reported to CRAs but I am wondering if the impact of a debt collection agency can show on credit files. Will the PayPal Working Capital balance default if this is thrown in with the negative balances and sent to a DCA? Ideally I'd prefer to clear that £500. @dx100uk would appreciate your input (even though it's an LTD)