HELP!! paypal sending debt collectors!!

edited 30 November -1 at 1:00AM in Ebay, Auctions, Car Boot & Jumble Sales
12 replies 1.5K views
yeslekyeslek Forumite
1.4K Posts
i'm posting this for a friend as she has been screwed over by paypal.

basically, she sold an item on ebay for about £150, buyer paid promptly via paypal, so she transferred the money to her bank and posted the item to the winner.
a few days after the money had arrived in her bank account the seller somehow cancelled the transaction and so my friend was -£150 with paypal.
first stinger - sold / posted item, paid ebay/paypal fees and lost the money.
she called paypal and conacted ebay but ebay said they couldnt do anything as feedback had been left from both parties indicating a completed transaction.
so she went on with paypal explaining her situation. they said that she was not covered and that she owed them £150.
second stinger - has to pay back £150

they have since, sent people round to collect this money that she doesnt have (she lost about £20 with fee's/postage) and the original £150 she transferred was spent on rent (she is a student so is broke anyways)

thing is, where does she stand as paypal are saying she owes them money but surely they shouldnt allow the buyer to cancel a transaction, specially after the money had been transferred to the sellers bank.

what can be done!! she has been given 4 weeks to pay up and with xmas it couldnt have come at a worse time.

any advice would be much appriciated.
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Replies

  • soolinsoolin Forumite, Board Guide
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    There are two sorts of chargebacks and it would help if you could find out which one it is. Firstly a chargeback for item not received can easily be dealt with at the time by proving delivery by using an online trackable service. If the item cannot be proved to be delivered then the seller, your friend would have needed to refund in full and reclaimed her fvfs and paypal charges that way. Then the item cost could have been claimed using the special delivery certificate which would have been needed for an item of that value.

    If however it was a chargeback for fraudulent use of a credit card then its a lot more difficult to deal with. In the first instance every attempt should be made to contact the buyer firstly to see if it is a genuine mistake, as this happens quite a bit. Again your frined must have some proof of delivery, which must track to a UK address so she must know where it went, If your friend can pove receipt then this is fraud, and she should go to the police as she has been scammed.

    However, harsh as it seems paypal have acted within the terms of their remit, in the UK anyone with a credit card can claim non receipt of goods and without proof paypal will reimburse that money to the credit card company.

    The other thing I would say is how did it get to the stage of debt collectors? This should be months down the line and a last resort from paypal. Everything should have been logged through the paypal account, and proof of delivery shown (even in cases of a claim for fraudulent use of card the delivery slip should be provided).

    Unfortunately paypal will send in debt collectors once it goes beyond the initial dispute and if they think the seller is going to default, so now this needs to be moved to the police instead.
    I'm the Board Guide for the Ebay Board , Charities Board , Dosh & Disability , Up Your Income and the Local MoneySaving-England board which means I volunteer to help get your forum questions answered and keep the forum running smoothly. However, do remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com
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  • yeslekyeslek Forumite
    1.4K Posts
    thanks.

    she's been in touch with paypal since aug and they have said they cant help her, just kept saying she need to pay the dollar
  • yeslekyeslek Forumite
    1.4K Posts
    0h, and it was claimed back as fraud
  • soolinsoolin Forumite, Board Guide
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    yeslek wrote:
    0h, and it was claimed back as fraud

    Well the bad news is that your friend will have to repay paypal as they will not call off the debt collectors otherwise. Then she needs to go to the Police and report a crime, and if they don't seem interested, stick with it. The buyer who used the card, not necessarily the card holder, has fraudulently obtained goods and with proof of delivery she can show exactly where those goods were accepted.

    Also, talk to the person who shows as the buyer, let them know you consider this a police matter and will be using the law to reclaim any monies owing.

    Soo
    I'm the Board Guide for the Ebay Board , Charities Board , Dosh & Disability , Up Your Income and the Local MoneySaving-England board which means I volunteer to help get your forum questions answered and keep the forum running smoothly. However, do remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com
    New to Forum? Guide
  • yeslekyeslek Forumite
    1.4K Posts
    will pass that on.

    cheers :)
  • Top advice by soolin there, not much I can add, but please make sure you let us know how your friend gets on........

    Hope you get it sorted....

    M
  • yeslekyeslek Forumite
    1.4K Posts
    i'v told her to call the cops cos the woman actually called her querying when the item would be sent.

    thanks guys
  • soolinsoolin Forumite, Board Guide
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    One final tip, she may need to persevere with the police. They sometimes hear the words 'ebay' or 'paypal' and assume it is a problem with them. This isn't an ebay or paypal problem this is a crime so your friend must be very firm about that. She has been defrauded out of £150 by another party, she can prove item has been received and can prove it was signed for (I am assuming SD slip has been retained), so make sure if she hands over any proof like that to keep a copy for herself, or only hand over a copy in the first place.

    Soo
    I'm the Board Guide for the Ebay Board , Charities Board , Dosh & Disability , Up Your Income and the Local MoneySaving-England board which means I volunteer to help get your forum questions answered and keep the forum running smoothly. However, do remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com
    New to Forum? Guide
  • cazmanian_minxcazmanian_minx Forumite
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    The police will be more keen to help if you make things as easy as possible for them. Before you go to the police station, it will help immeasurably if you assemble the following:
    • Screen print from Royal Mail website showing the delivery signature
    • Photocopy of the Special/Recorded delivery slip showing the delivery address
    • Screen print of the auction listing (if you have one, if it was August it may have gone)
    • Printouts of the eBay notification emails showing buyer's details
    • Printouts of the Paypal notification email, showing delivery address
    • Printout/photocopy of Paypal's correspondence advising it's a fraudulent transaction

    Number all these bits of paper and then type up a short statement, something along the lines of:

    On [date auction ended] I agreed to sell a [item] for £150 to [delivery name] (sheet numbers [printout numbers for auction listing & ebay notification emails]). Payment was received via the Paypal system on [date](sheet number [Paypal notification email]).

    I despatched the goods to the address given by the buyer on [date] and they were received on [date] (sheet number [copy of Special delivery slip]).

    On [date], Paypal contacted me to say that the card used to pay for the goods had been used fraudulently and I had to return the £150 to them (sheet number [Paypal correspondence]).

    Sign it and date it.

    Then go into your nearest police station, speak to the duty officer, say you've been defrauded out of £150 and you'd appreciate their assistance in recovering your money. Don't mention eBay to start with, as Soo says. Hand over your paperwork with the statement sheet on top and the others in the order they appear in the statement and, as long as you've gone in at a quietish time (mid-morning's usually best if you're free) then they should take it on.

    The only problem you *may* encounter is that if the delivery address is at the other end of the country to you, they may ask you to report it to the nearest police station to the delivery address, as it's easier for them to investigate. If that happens, it may be easier to go through the following site:

    http://www.online.police.uk/english/default.asp

    Report it as a theft, give the delivery address as the location of the crime, and someone from the local station will get back to you with a crime reference. The couple of times I've used it for work, they've rung within 48 hours.

    Good luck!

    Caz
    Home: 06/08: £145,145.00 Currently: £106,249.36 Amount paid off: £38,895.64 (26.8%)
    Ethel's: 05/18: £99,000.00 Currently: £99,000.00 Amount paid off: £0 (0.0%)
    Tor: 05/18: £82,500.00 Currently: £82,500.00 Amount paid off: £0 (0.0%)
    Debt-free: 17/02/2017
  • wigan_rl_till_i_diewigan_rl_till_i_die Forumite
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    Get there address of ebay go round and kick there a**
    2010 Super League Grand Final Winners :beer:
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