Do NOT ignore the letter you received from American Coradius International. Do NOT contact the company directly. Contact PayPal directly to resolve the issue. The phone number I received over the phone from PayPal Credit (after a VERY involved and LONG wait with PayPal), was to call was to the fraud unit (sorry, but this site will not allow me to post the direct phone number). Do know that it was NOT my PayPal Credit that was compromised; it was my actual PayPal account (which has ALWAYS been paid on time). The fraud unit is most helpful and can resolve the issue. They will also give you a ticket number so you can refer to it should you desire to track the progress OR have questions regarding your reporting of any fraud. My situation: I received a letter from American Coradius International (the collection company for PayPal), stating I owed money that was now in collection. I did NOT owe the money and the amount NEVER appeared in my PayPal account. Long story short, my account had been compromised BY TWO OTHER PEOPLE who I did not know. There was NO indication that my PayPal account had been compromised until I received the letter from American Coradius. After speaking with the Fraud Unit: I immediately changed my password to my email account associated with PayPal. I hope this post will help others in the same situation.
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