EOS Solutions/Paypal Debt Advice Required

Part-Time_Samurai

Hi all

I have a long running issue with Paypal and latterly EOS Solutions. The basics of the story are that I sold an item via Ebay in August 2006, it was actually the first thing I ever sold on Ebay, and posted the item to what I later found out was an 'unconfirmed' address. As I said, this was my first Ebay transaction so I was in constant telephone correspondence with Paypal to ensure the money was in my account and could post the item, basically to ensure I wasn't going to get done over as an obvious new user. Anyway, the purchaser had paid with an unauthorised credit card and a chargeback was placed on my account for the sum of c£500.

As an honest seller I took the necessary steps to show that I had acted correctly in the transaction and provided copies of proof of postage and everything that was requested, however, Paypal's Resolution team did not rule in my favour, I believe because the receiver's address was not confirmed.

I reported that matter to the Police, who advised it was the responsibility of Paypal to protect their users. Nonetheless, I provided this to the first Debt Recovery Company who contacted me and following a couple of strongly worded letters they advised (verbally) that Paypal had written off the debt.

Late last year I was contacted by EOS Solutions with regard to the same debt, which had also increased by c£80. I replied to each of their letters, albeit by unrecorded mail, and requested a reply. No reply was ever received.

Today they called my work, I can only assume the number was retained by Paypal at the outset of the chargeback case. I requested that they provide evidence of what monies were owed - this was a tactic I was aware others in the similar situations had used to their advantage as the Debt Recovery Company were unable to provide such. The person I spoke to was able to go in to some detail when advising of the transaction so I feel this may not be an angle I can use to my advantage.

Does anyone have any experience of similar circumstances and advice on how to proceed in this regard? My initial concerns are what action can be taken by the Debt Recovery Company to take this matter further. Secondly I would ask whether I would be in a position to repay only the initial sum outstanding to Paypal (and if I am legally obliged to pay any additional sums due to the DRC) or even negotiate a settlement figure - experience of this would be fantastic.

Also, are Paypal debts typically bought/assigned by EOS Solutions or are they working on behalf of Paypal. This would potentially influence any strategy in negotiating.

If anyone has any advice or pointers in this regard it would be much appreciated.

Thanks in advance.

Hannah_10

The way I'm reading this it's essentially that you have been the victim of fraud. As a victim of fraud a financial provider like PayPal ought to protect you, morally if not legally. My initial reaction is to say complain to the OFT but I'm not sure if you have a complaint or not. I don't know much about the OFT, but these people do http://www.consumerdirect.gov.uk/ you've got nothing to lose by calling them. Sorry I couldn't be more help, here's hoping someone with a better grasp of the technicalities comes along soon.

DarkConvict

Debt collectors are not allowed to call you at work under OFT guidelines, and seen debt collectors lie it is best they only write to you, not ring you. http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

27. Bailiffs and Collections
Templates to stop lenders/bailiffs hassling you.
27.1 - You know nothing of the Debt / Prove It - Who's debt is it / Prove it Letter;
27.2 - Harassment by Telephone - Template to send if you're getting lots of phone calls;
27.3 - Harassment by Telephone - Follow Up - Template issuing s.10 & phone number removal;
27.4 - Legal Threat - Harassment by Telephone - Threat of legal action unless the phone calls stop;
27.5 - Harassment by Telephone - At Work - Template to advise cessation of calls at work.
27.6 - Threat of Doorstep-Visit - Template to send the DCA when they threaten a Doorstep-Visit;

http://forums.moneysavingexpert.com/showpost.html?p=33791363&postcount=2 (bottom of post)

I agree you are a victim of fraud, and it is all to common with paypal. One reason why i have never sold anything on EBay is all the horror stories of non-payers.

Do get in touch with consumerdirect and see what they have to say. As a seller you did all you could, took photographs and sent by recorded delivery. The user obviously got the item and just did a charge back to get it for free.
Weirdly enough when i was sent a fraudulent item, Ebay and paypal favoured the seller, yet the item was an obvious fake.

Part-Time_Samurai

I contacted Consumer Direct this morning and was advised to pay the EOS Solutions the initial amount c£500 by cheque with it specifically marked as 'paid under dispute'. They suggested I take Paypal to a small claims court at a cost of c£50 to attempt to get the monies back.

Does anyone have any experience of taking this kind of action or an insight as to whether this is good advice?

PS - They were unable to confirm whether I was liable for the costs incurred by the 2 debt collection agencies employed by Paypal. Does anyone know what my stance would be here?

climbintheladderouttadebt

Don't pay them! They will see it as an admission of the debt!

Part-Time_Samurai

That's what I thought but not doing anything is burying my head in the sand and will only see the debt grow - no?

Marisco

Hi PT Sam, I'm sorry if I'm coming over as thick:o I've never sold only bought on Ebay. You sold something for £500, the customer didn't pay for it, yet you are getting chased for the £500 although you are the seller????? I must be missing something here:o

Part-Time_Samurai

Hi Marisco

I sold an item via Paypal which was paid for with a stolen credit card. Paypal took the money back from me to pay the credit card company. My account had a zer balance at the time so plunged to a -£500 balance. I did everything by the book but Paypal are now try get the money back and more.

Hannah_10

I can kind of see where ConsumerDirect are coming from.

It's going to end in court one way or the other.

You either pay it then take them to court to try to recover it.

Or you don't and they'll take you to court eventually and after much damage to your credit rating and your general stress levels.

Did you check while you were on the phone if you had an OFT-worthy complaint?

Part-Time_Samurai

Hi Hannah

No, I didn't. I did ask Consumer Direct if they thought my case would have a chance in a small claims court but they would give me any indication.

My concern is what can I do to clear this debt. If I cant afford to pay the full amount what would be the chance in getting a reduced settlement?

Marisco

I must be having a serious senior moment here:o:o I still don't see why they are chasing you though?? You are the one who has lost out by not getting paid for your goods. Its not your fault the CC was stolen so why should you have to pay anyone???? I'm sorry it's probably obvious to everyone but me:o:o Does paypal pay the seller before the buyer pays then??