PayPal Credit charges and I don't even have an account

[EnricoPalazzo12]

I just started receiving calls about 3 months ago from Portfolio Recovery Assets which is PayPal's collection agency.  They told me I owe them $1771 and they have been calling non-stop.  I don't even have a PayPal account but I created this one so that I could post to the community for some possible answers.  Apparently there was a PayPal Credit account fraudulently created with my name in 2020 and they made multiple purchases on E-bay.  The account that was created has my name listed but the rest of the personal info on the account is not mine.  I have spent the last 3 months trying to resolve the issue with PRA, Synchrony Bank (PayPal's bank), as well as PayPal and they offer no help.  I've honestly spent days on the phone and each entity just keeps telling me to contact the other.  It makes it even harder since I never had a PayPal account and most times they hang up.  This is also negatively affecting my credit which has been perfect up until now.

If anyone has any suggestions I would be extremely grateful.

[kernowlass · Accepted solution]

@EnricoPalazzo12 

I would seek legal advice?

[EnricoPalazzo12]

I think that's my only choice at this point.  Just don't understand why I need to spend money on legal fees for something which is the fault of PayPal Credit. They allowed someone to open an account with my name but with the wrong personal information.  PayPal should be held accountable for their lack of security, negative affects on my credit, and the anxiety and hassle I've suffered for the last 3 months.

We're trying to refinance our mortgage because of money issues from COVID and we can't move forward because of this issue on our credit.

[EnricoPalazzo12]

After spending months and countless days refuting the claims by PayPal and their collection agency Portfolio Recovery Assets, I have finally proved to them that this was a case of identity theft caused by PayPal's ongoing lack of security.  During this time I spent many days contacting government agencies and the most helpful was the Federal Trade Commission.  Their site identitytheft.gov helped me not only resolve my issue with PayPal and Portfolio Recovery Aseets, but also with the credit bureaus.

If you're experiencing the same issues I would highly recommend visiting the FTC site.  It's a government site and there are no fees for the services they provide.  After submitting your information they will provide you with the required documents regarding your case which you can send to the the collection agencies as well as the credit bureaus.

If anyone has any questions feel free to post on this thread and I will answer as soon as I get a chance.  The entire event was a nightmare for me and my family and I don't want others to go through the same.