PayPal Pay After Delivery is a scam Internet

I subscribed to PayPal's 'Pay After Delivery' service.  PayPal advertises this as a way to purchase items and not have the money withdrawn from your account for 14 days.

I submitted transactions on February 3, 2016, to be withdrawn from my bank account on February 17, 2016.  Instead of waiting to process the transactions, PayPal submitted the transactions to my credit union for immediate processing. 

I tried to cancel the transactions via the instructions on the PayPal website but the instructions did not work.  Needless to say, my checking account started being hit with multiple overdraft fees.  At this time my checking account was overdrawn by more than $800.  Payments to other creditors were also returned and assessed overdraft fees since there was no money in my checking account.

I called PayPal and was told by Oliver that PayPal screwed up and processed the transactions in error.  I asked about reimbursement for the overdraft fees but was told that PayPal didn't reimburse overdraft fees and to contact my bank.

I called my credit union to see what could be done.  My credit union said that they do not cancel overdraft fees and to contact PayPal again.  What my credit union did was to block PayPal from submitting electronic transfers from my bank account.  At that time the pending overdraft fees would have been over $1,200.

I called PayPal again and spoke to a supervisor.  We discussed the issue and he agreed to send me a letter via e-mail outlining PayPal's error.  He said that he was not able to reimburse me for the overdraft fees and to contact my credit union.

When I received the e-mail from PayPal I was outraged.  Instead of admitting the error in processing the payments on February 17, PayPal's language in the letter placed the blame on me for the overdraft fees.  The agent said that the language in the letter is the only approved language from PayPal's legal department regardless of what was agreed upon.

I called PayPal and demanded to speak to a supervisor.  The supervisor got indignant and said that PayPal will never reimburse overdraft fees, regardless or not if it's their error.

In the next few days I got a letter from a collection agency demanding payment for almost $700.  I called the collection agency back and explained the issue.  The collection agency filed a dispute and returned the matter back to PayPal.

Next, I sent a Demand Letter to PayPal.  The Demand Letter was my attempt for PayPal to reimburse me for the overdraft fees plus other issues caused by PayPal.

PayPal responded four months later demanding payment.  I tried to explain what was going on, but she got indignant and said that they will never pay any money for their error.  I told this supervisor that I would take this matter to Small Claims Court.

A couple of weeks ago I got a letter from another collection agency demanding payment.  I explained the entire issue, including the collection agency, and they said that they would return the matter to PayPal.

It wasn't three days later that I got a call from the first collection agency demanding payment for the same amount.  They were surprised that a second collection agency was now involved.

I'm in the process of resending the Demand Letter, but this time I'm going to put a deadline for answering.  If PayPal continues to deny that the error was on their part I will take them to Small Claims Court.