One question: if I refuse to resolve my negative balance based on the below situation, would PayPal win a judgment against me in a court of law? I don't want to pay and here is my story... Hardly use my PayPal account. Wanted to pay by credit card, but clicked submit with bank account (that was closed!) as primary and credit card as secondary, as I "knew" it would fund by the credit card. Immediately after, it showed, to my horror, that the funds were transferred from the CLOSED bank account--should not have been possible!!! Then my account was referred for a fraud investigation. The seller had to confirm the shipping address and I had to renter my details the next time I logged into PayPal. PayPal took the freeze off my account and gave the seller "Seller Protection" and the item was shipped. I then get a few emails from PayPal, this one sums it up: "The negative balance in your PayPal account is due to a failed bank transfer from a transaction that was initiated on Jun. 15, 2010. The payment was sent to the seller however, your bank account was never debited." And turns out I was not able to use my credit card. Here I am with an item I did not have the money for. some reason the ACH from my bank took three days to reach PayPal to say it was in error. This is not really my fault. The seller won't take back the item and PayPal says I have to Pay the balance. Offered to return the item to PayPal (as they paid for it) but that was not considered an appropriate solution.
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