PayPal chargeback help needed.

paypalheadache

I have a PayPal payments pro account which uses a virtual terminal to process credit card payments.

We processed a payment from a custom for her website in Nov 2010, the amount was around £1900. Our business went into liquidation in Jan 2011, although this did not effect the customer and she has been using the website and images to promote her business for the last year.

Instead of setting up a new PayPal account for the new business, we simply changed the details with paypal and they were happy to let us continue using their service with the same paypal account.

Now the customer has decided she no longer needs her website, and knowing that the original company was in liquidation, she decided to pull a fast one and issue a charge back 8 months after receiving and using her product.

I provided all the proof of website "live link" and documents, emails, invoice and contract. Despite this she was awarded her charge back and PayPal are chasing me for £1900 personally, even though the paypal transaction was on behalf of a limited company and the funds transferred to the Ltd companies bank account and not my own.

Paypal state that im the account holder and don't seem to offer any information on the charge back and how it was contested.

This leaves me in a situation that defies belief. I personally never benefited from the transaction in the first place as the original company was crippled with debts, the customer has a fully working website, business cards and professional photographs, and has all her money back, and i have to pay £1900 to paypal.

Can somebody please advise me on my next course of action. I don't think ill be able to take the client to small claims as the transaction was with a company that is no longer trading.

Can somebody help?

Many Thanks

Darlyd

paypalheadache wrote: »

I have a PayPal payments pro account which uses a virtual terminal to process credit card payments.

We processed a payment from a custom for her website in Nov 2010, the amount was around £1900. Our business went into liquidation in Jan 2011, although this did not effect the customer and she has been using the website and images to promote her business for the last year.

Instead of setting up a new PayPal account for the new business, we simply changed the details with paypal and they were happy to let us continue using their service with the same paypal account.

Now the customer has decided she no longer needs her website, and knowing that the original company was in liquidation, she decided to pull a fast one and issue a charge back 8 months after receiving and using her product.

I provided all the proof of website "live link" and documents, emails, invoice and contract. Despite this she was awarded her charge back and PayPal are chasing me for £1900 personally, even though the paypal transaction was on behalf of a limited company and the funds transferred to the Ltd companies bank account and not my own.

Paypal state that im the account holder and don't seem to offer any information on the charge back and how it was contested.

This leaves me in a situation that defies belief. I personally never benefited from the transaction in the first place as the original company was crippled with debts, the customer has a fully working website, business cards and professional photographs, and has all her money back, and i have to pay £1900 to paypal.

Can somebody please advise me on my next course of action. I don't think ill be able to take the client to small claims as the transaction was with a company that is no longer trading.

Can somebody help?

Many Thanks

I would seek legal advice asap.

shaun_from_Africa

As it sounds like the item in question was not a tangible item that was posted with proof of posting obtained, the transaction would have been ineligible for seller protection. Because of this, Paypal would have had no option but to repay the money when requested by your customers credit or debit card issuer.

As legal action against your buyer may not be possible, you should contact the legal department of card issuer in question and advise them of all the facts, making sure that they are aware that the buyer has been using the website that you provided.
It might be worth getting proper legal advice over this before you go any further.

Oliver14

so your company went into liquidation in january and you just changed the name and traded as a different company? A little unethical don't you think?

Any way afghan is correct its not a tangible item so not covered in paypal. The legal route is your only option.

paypalheadache

Thanks for the responses so far guys.


In relation to this

"so your company went into liquidation in january and you just changed the name and traded as a different company? A little unethical don't you think? "

No, the 2 businesses are unrelated.

MissGivings_2

The lawyer types at the 'consumer rights' forum may be able to give advice