Complaint Review: NCO Financial Systems - Paypal

I have recently received a letter from NCO Financial Systems Inc. telling me that I owe $116.70 to Paypal Inc. Although I did open a Paypal account this is ridiculous because, anyone who has, or ever had their account knows that it's impossible to owe Paypal money because, they are not a lender!

The letter also says that if I don't respond in 30 days, they will assume that the debt is valid, which is obviously a way for them to verify my address. I'm seriously thinking about not answering them. Is there any advice that anyone could give me?

Michael
Pearl City, Hawaii
U.S.A.