Over 2 months since paypal supposedly sent money to my bank account, but no sign of it.

[Antale]

My computer was hacked while I was out of town and the hacker tried to send himself $400usd. I realized something was wrong due to changes on my computer and found out about the transaction the next day. I immediately contacted Paypal to have the transaction cancelled, and I also contacted my bank to put a freeze on that account (it did not have enough funds to cover that $400usd should Paypal try to withdraw it). Paypal agreed that the transaction was fraudulent and cancelled it, saying they would refund that $400 usd to my paypal account. At this point my account was in the negative of that $400. In the meantime the Paypal withdraw from my bank wasn't actually cancelled as they said it would be and the withdraw from my bank account subsequently failed (due to my bank account being frozen).  They essentially put the $400 back into my account the same day the bank withdraw failed. The emailed had said that the funds would be sent to my paypal account. I assumed that the negative balance would zero and that would be it, but that did not happen. The Paypal system automatically processed the funds to be sent to my bank account. This essentially caused my account to go BACK into the negative. I spoke to a representative who told me that once the funds were in my bank, to just pay back the amount to Paypal.

It has been over 2 months, I've not received a single dime from Paypal into my account. I've tried calling dozens of times but because my account is 'so far negative', I have to speak to a different division who NEVER answers. I have tried emailing but I get the typical "we cannot discuss this through email, please call us" at the number that DOESN'T EVER ANSWER. I emailed again asking for someone to call me, but I have never received a call or response.

To make matters even worse, they have now sent the amount to collections which will now effect my credit score. This is beyond ridiculous. I don't know what to do at this point.

The timeline breakdown;

May 21st - The fraudulent $400 withdraw (My account is now -$400USD)

May 22nd - My complaint of the fraudulent transaction

May 23rd - The refund from Paypal of that $400 (My account is now $0)

May 24th - Paypal automatically sent the $400 refund from my Paypal account to my bank. (My account is now again -$400)

May 29th - My first complaint to Paypal. Their response "Please call us". This is where I received the "Just wait, everything will be fine" response.

June 7th - I email again (because I can't get through by calling). Received an automated response that didn't address anything. I responded to that email again asking for better information.

June 11th - Received the response from previous email. This email tells me that I should get the Paypal App (Not sure how this was supposed to help). 

June 12th - Emailed asking if I can get a different phone number from the 1-800 one to speak to someone directly. 

June 14th - Received a response explaining what I already know, but that does not answer why I have not received the funds sent to my bank yet. This email basically tells me to put money into my account to cover the -$400USD (I have not received the money from paypal yet, and it's been almost 3 weeks at this point).

June 18th - After trying countless times to call them, I email again explaining that I haven't received payment and that if they wish I can provide bank account details proving this.

June 19th - Response from Paypal is again "Call us". Which I try, but as usual I cannot get through to anyone.

July 3rd - I email yet AGAIN to have someone contact me in regards to all of this. 

July 6th - I receive the following response "We are passionate about giving you the best customer service we can. We have reviewed your email and feel that we would be able to answer your question(s) better by speaking to you. Please contact our Customer Solutions Department at https://www.paypal.com/selfhelp/contact/call."

July 16th - I received a letter from a collection agency demanding the payment as Paypal has given them my information. 

Essentially Paypal is demanding money they say they sent to me, that I have not received.

I'm about to pull my hair out. I have tried calling over a dozen times and because it sends me to a different department that doesn't answer I don't know what to do. Do I need to contact a lawyer? Radio/TV stations? All I want is for Paypal to do a trace to see that I haven't received their transfer and either cancel all transactions or figure something else out.