Back in January after not using my PayPal account for ~3 months I logged in to send money. I found that there was over $700 in my paypal account from transactions done on ebay on January 8th. None of these were mine. Naturally i was concerned because I had my bank account linked as well as various credit cards. Someone added a new address to my account as well as what looked like a pre-paid card. I panicked fearful of my identity and transfered the balance to a different account and then to another bank. I closed my bank account associated with the breached account, closed my ebay associated with the breached account and closed my paypal account. PayPal was absolutely no help resolving the issue. Finally Ebay at least confirmed that I never sold the items in question. They also said, if a chargeback happened with the items I would be able to pay with a different paypal account and just confirm the payment is from the now closed paypal account. This all transpired in January. Fast forward, yesterday i receive a letter from a debt collector saying i owe paypal for the balance in question. I sent out a letter asking to verifying the debt. Why would Paypal not communicate with me at all regarding this issue? They made no attempt to send an email to the previous account, call, or send any sort of letter. I had no idea of any chargebacks until receiving this letter from the collector. I am fully prepared to pay back the amount because I held the funds in question in my bank, but now instead of Paypal contacting me at the time of chargebacks, my credit score is going to take a hit. They clearly also had information on file because when i provided the email address associated with the breached account, they confirmed i had a negative balance. PayPal also said no breach occured yet Ebay confirmed I never sold any items. Both the ebay email address and paypal email address I used were the same. How do I go about this so my credit score isn't hurt by PayPal's utter lack of communication. Like i said, paying back the chargebacks was never going to be an issue, but not I have to do damage control because they made no effort to contact me before passing this along to a debt collector.
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