Verified answer

NCO Financial is a bottom feeder collection agency, but it is not a scam. If you owe paypal any money, then log into your account it will definitely let you know if you owe the money. If your account does not show a balance due or locks you out then send NCO this letter.

http://credit.about.com/od/debtcollection/qt/valid...

Send the letter certified mail with return receipt. Actually check your paypal account but go ahead and send the letter anyway, until you get it straightened out.

There is a legit collection agency called NCO Financial. It is somewhat odd however, that Bank of America didn't pursue the collection themselves, So you should probably verify that the debt has been referred to NCO by checking with a representative of the bank.

NCO Financial is a bottom feeder collection agency. They have been known to make a payment on old accounts to show activity on ones credit report to enhance their ability to collect accounts.

Someone must have hacked into your PayPal account.

When a debt collector first contacts you, your first step should always be to request validation of the debt per your rights under the Fair Debt Collection Practices Act. Even if the debt is valid, request validation anyway.

Send them a letter via Certified Mail + Return Receipt (do not use regular mail) stating:

Per the Fair Debt Collection Practices Act, I am requesting written validation of this alleged debt.

First of all, you are dealing with one of the countries worst collection agencies. They have been known to make a payment on old accounts to show activity on ones credit report to enhance their ability to collect accounts.

You can read more about NCO at the following:

http://www.budhibbs.com/collectorpages/nco_financi...

You should contact pay-pal directly to make sure and validate any activity on your account. Also ask them if they have sold any debts in your name to NCO or use the referenced web site for more help.

Hope this helps