PAYPAL advice please

[Jimmy Little]

I have had my PAYPAL account closed for 12 months due to being ripped off on ebay and paypal giving my funds away! I logged onto the account to see what was what and then sent them an email regarding the matter, they sent me this, I have been told that they cannot collect the money as they are from the US and cannot have the power to effect my credit score or retrieve the money, I have no intention of using PAYPAL ever again due to the fact that they don’t protect the seller in regards to ebay stuff… but I don’t wanna bad credit score or people chasing me. I have herd nothing in 12 months and now I feel a bit of a dick for even contacting them, I’m gonna check my credit score if I can and make sure noone is black marking me.

Any ideas or views on the matter guys?

Email below
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Dear James Little,

Thank you for taking the time to contact us with your concerns. I am happy to assist you further.

It has come to our attention that the PayPal Account registered to you, has been locked from further use due to the fact that it has maintained a negative balance of $174.41 for an extended amount of time. An email notification from PayPal was sent to you regarding this negative balance on the account. It is also possible that you may have been contacted by our collection agency, NCO Group. Please follow the proper instructions below to pay off your negative balance. The necessary steps for completion will be dependent upon whether or not you were contacted by NCO.
If you received an email from PayPal only, please send an cashiers check or International money order denominated in U.S. dollars to:

PayPal-Charge Off P.O. Box 45950 Omaha, NE 68145

* Please note the email address of the account to be paid.

If you received a letter or phone call from NCO, please send a cashiers check or international money order denominated in U.S. dollars to:

NCO Financial Services (UK) Limited 3rd Floor Windsor House 1270 London Road Norbury, London SW164DH

PayPal (Europe) Limited is authorized and regulated by the Financial Services Authority in the United Kingdom as an electronic money institution.

Thank you for being part of the PayPal community.

Sincerely,
Clodagh
PayPal Account Review Department
PayPal, an eBay Company

Original Message Follows:

[aeonf242]

Thank you for being part of the PayPal community.

WTF, how patronsing...

As far as the debt collection agency thing I'd advise you contacting them. If they have a lega;=l (albeit it unjust) case against you they maybe be charging you numerous admin costs to try to get back the original dosh you owe e-bay/paypal (I mean they stole from you).
Credit collection agencies don't tend to go away, they'll bide their time. They may even have started a proceeding against you but at an incorrect address.
Not meaning to alarm you....
Having a credit collection agency after you shouldn't effect your credit reference but having a CCJ etc will dent it alot.
If you need legal advice try CAB or look at the various paypal support groups (such as http://www.paypalsucks.com/)