Paypal Negative Balances

There is a negative balance on my friend's Paypal account. He's worried because he has heard that Paypal can pursue legal action against him, as he doesn't have a method to pay his debts. Apparently his initial transaction using a debit card was approved and Paypal updated his account with funds to transfer to the recipient, but then Paypal realized that my friend definitely didn't have enough money. He then proceeded to cancel his debit card.
We're talking a couple grand here, so is it time…
Paypal Negative Balances

See original post by johnsuth