Even if you close your PayPal account, you are still legally responsible for any debts, disputes, chargebacks, or other obligations that arose while the account was active.
The provision shifted from emphasizing PayPal's unilateral right to terminate 'for any reason' to emphasizing the user's right to close their account at any time without cost, though liability continues post-closure.
View full change record →Closing your PayPal account does not extinguish your financial obligations — if chargebacks, disputes, or negative balances arise after closure relating to transactions made while the account was open, PayPal can still pursue you for those amounts. This is particularly significant for sellers who close their account after a busy sales period but later receive chargebacks.
Cross-platform context
See how other platforms handle Account Closure and Liability Survival and similar clauses.
Compare across platforms →Many consumers assume that closing an account ends all financial obligations, but PayPal's surviving liability clause means you can still face collection actions, negative balance recovery, or chargeback liability long after closure.
(1) REGULATORY FRAMEWORK: Surviving liability provisions are standard in financial services contracts and are generally enforceable under UCC Article 4A for payment orders and common law contract principles. However, debt collection activity post-closure is governed by the Fair Debt Collection Practices Act (FDCPA, 15 U.S.C. § 1692) if third-party collectors are used, and CFPB UDAAP standards apply to PayPal's own collection practices. State statute of limitations for contract claims (typically 3-6 years) limits the duration of potential exposure. (2)
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