PayIn4 balance sent to collection while bank chargeback dispute that is still active?

[badbob001]

I made pre-orders with my credit card via PayIn4. Many months later, vendor never shipped item and have since gone bankrupt. Since it's past 180 days, I file a chargeback from my credit card (paypal support also says to do this). But then I see some of those old PayIn4 payments say failed and Paypal says I need to pay them, despite the credit card dispute still active and just two weeks old.

Then yesterday, I get a weird email from [removed]: 

Email Opt Out Notice

We transferred your Pay in 4 account(s) referenced below to ACI-US, and we are providing ACI-US with the following email address for you:

<my email address>

ACI-US may use this email address to communicate with you about the debt. If others have access to this email address, then it is possible that they may see the emails.

Opt Out

If you would like to opt out of communications to the referenced Pay in 4 account(s) by ACI-US to <my email address>, please click here by 08/19/2023.

Thank you,

PayPal, Inc.

This is an attempt to collect a debt, and any information obtained will be used for that purpose.

PayPal Pay in 4 Correspondence,

PayPal Inc.
Attention: Accounting
[removed]

[removed]
United States

So it seems like paypal has sent my balance to collection without notice and while the charges are still in dispute. What is the time period before paypal sends a balance to collection? Perhaps they not going by the date the payment was reversed by the bank but the date of the original payment.

[PayPal_JonK]

Hello @badbob001,

Welcome to the PayPal Community Forum! I'm sorry to hear you've run into some issues with a recent negative balance. I can certainly understand how this process may be a bit confusing. If a repayment doesn't go through, it has the potential to make the account Past Due. You may receive an automated phone call, reminding you of your past due balance and informing you of how you can make you payment. From there, our Collections normally work with members who have held a negative balance between 7-37 days. After 37 days of being negative, an account may be reviewed and referred to a collections agency for recovery. 

If you'd like more information on when your account became past due or negative, please reach out to our Customer Support teams for assistance. 

Best wishes!

 - Jon K

[badbob001]

It looks like my debt was sent to collection after only 12 days! The original bill was paid in full a year ago, but since I later initiated a chargeback, perhaps the lateness is calculated from the original date of purchase and not the date the payment was reversed?

Anyway, so these charged are still under dispute with my credit card company. If I pay the debt to the collector but later win the dispute, will paypal reimburse the amount I paid the collector? I actually haven't received any email or letter from the collector yet, so I have nothing to reference to make a payment.