Paypal Chargeback Consequences Explained

Summary

Unpaid negative balances on PayPal business accounts can lead to collection actions, affect your LLCs credit score, and result in potential legal action. If the accounts are strictly under your LLCs names, liability generally remains with the LLCs unless personal guarantees are involved. Its advisable to contact PayPal to discuss the situation and explore resolution options to prevent escalation. Consulting a lawyer for a review of your agreements is also recommended.

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on these LLC i have paypal business accounts and there were some chargbacks on paypal accounts , i did provided all information on wrong chargebacks but still paypal refunded those chargebacks. now i have negative balance on these paypal accounts, what will happen if i dont pay those negative balance?
If you don't pay the negative balance on your PayPal business accounts, several things can happen:
- PayPal may refer your account to a collection agency.
- Your LLC's credit score could be negatively impacted.
- PayPal might take legal action to recover the debt.
- Your PayPal account could be limited or closed.
It’s advisable to address the negative balance to avoid these consequences. Do you need more detailed information or assistance with this issue?
will this affect only LLC , not personal ?
If the PayPal accounts are strictly under your LLCs' names and not tied to your personal accounts, generally, the liability would remain with the LLCs. However, if you have personally guaranteed any debts, your personal assets could potentially be at risk. It’s best to consult with a lawyer to review your specific agreements.
Would you like information on how to find a lawyer in your area?
should i call paypal
Case Rating: *
You should definitely contact PayPal to discuss the situation and attempt to resolve the negative balance. They may offer solutions or options to address the debt. This could help prevent escalation to collections or legal action. Would you like any further information or have other questions?