PayPal 'Unauthorised claim' (chargeback) HELP!!!

homie44

Hey guys and girls

I guess I am writing this as a real last resort and seriously hoping someone can pop up as my 'angel in disguise' to help me out with this.

To cut a long story short: I sold a 50" TV on eBay. Listing was for "Local Pick Up Only". The buyer bought it for £550 (using the 'Buy It Now' button). Buyer had perfect (100%) 52 feedbacks.

The buyer sent me a message asking for my number to arrange collection. Spoke on the phone, buyer paid via PayPal, came to collect - deal done. Nice guy, hence I left good feedback as he requested. Immediately after getting paid through PayPal I've transferred the money to my Bank Account.

The next day I get an E-Mail from PayPal regarding an "Unauthorised Claim" against me. Apparently the PayPal account holder from where the money was paid to me is claiming that this was an unauthorised payment. From zero my PayPal balance became -£550 in bold red colour.

I told the whole story to PayPal, times, phone numbers, emails, text messages etc. However, I was told by PayPal that I'm not protected and I'm likely to lose the case. According to them, PayPal doesn't protect 'Local Pick Up' deals. This is an on-going dispute that was opened 10 days ago.

Obviously I still don't understand why it is my problem that someone had his PayPal account hacked. It's either the account holder's fault or PayPal's system. Definitely not my fault as I only sold an item, buyer never complained or said he didn't receive it. The fact is the BUYER paid. Obviously the buyer is a scammer and he paid using someone else's account, but that is not my fault. I'm even thinking it might be his account but he wants to Win-Win using a chargeback.

Now PayPal wants to take back my £550 from my bank account and give it back to the account holder. So I will lose both the TV and the £550. Un!!!!ingbelievable. Apologies.

Now, I'm not willing to give up, accept PayPal decision and lose £550. This is simply unacceptable and I will do anything in my power to stop this from happening. I don't mind getting sued by PayPal if necessary to protect my money. I removed my PayPal Direct Debit from my Bank Account and asked my Bank to decline any future requests from PayPal to set up a new Direct Debit.

HOWEVER, because PayPal's got both my bank details (direct debit use) AND (!) debit card (continuous authority / agreement) hence I have a big problem. According to my bank, I can't stop PayPal from charging me via the debit card if they want to. Even if I don't want them to, the bank can't do anything to stop them. I had to tell the Bank that the FSA (Financial Service Authority) says that I have the right to cancel any continues authority. It's my right. But the Bank says that it's not a continues authority and it's 'an agreement' that can't be cancelled.

Now, I can't close my bank account because I have a dispute. I can't block PayPal from charging me through the debit card. I can't remove my debit card or bank details from PayPal due to the dispute. So basically PayPal can charge me £550 if they wish. They can force me into paying. Yes. I, the bank account holder, can't stop a company from charging me if they have my debit card details. It's ridiculous that I can't protect myself. Already spoke with everyone in the bank, 10 phone calls and no help.

What to do? Do you guys know how I can protect myself? It's obvious I didn't do anything wrong. Why do I have to pay the price? Should I contact the Police? should I let PayPal take the money and then open a dispute against them?

or....is it a lost case from the start?

Thank you,
George

EycplUK

Empty the a/c ? no funds = no payment :beer:
Change your bank and do not make the same mistake again with your debit a/c !
:beer:

arcon5

Is the buyer local to you? If so a quick drive round will determine whether he has used somebody elses account or whether it's his account he is scamming you from?

If the former, then the account holder has every right to recover the money. If the latter, take some friends with you . I trust you have the buyers address? I also trust up on collection you verified this address by checking his driving license identification for example? I also trust you both signed a bit of paper confirming the item has been collected, when and who by?

Hintza

Your post is rather confusing in places I think you use the word seller instead of buyer.

This might be better on the EBay board once you have cleaned up the post.

Back to your problem this is not an uncommon scam and the mantra is if you allow local collection then you don't allow PayPal.

neilmcl

Do you have the buyer's address? I'd definitely contact the Police as this sounds like a criminal matter.

CoolHotCold

Sorry, but PayPal/Ebay do state that you must prove postage if there is any dispute, which is why you should only ever accept cash on collection if you are doing a local collection only deal.


Short of it is you will loose the £500 odd from your bank and you will have to start a civil case against paypal.

Oliver14

CoolHotCold wrote: »

you will have to start a civil case against paypal.

Paypal have done nothing wrong so that will be pointless.

If the OP has the address and details of the buyer they could try the small claims court though even if they win it wont guarantee payment.

Paypal is not suitable for pickup items

maninthestreet

You can find out the buyer's address from Ebay - in fact, some of the end of auction email communication from Ebay may already have listed the buyer's address. However, if the buyer is a scammer, that address may not be valid.

halibut2209

This is the oldest eBay scam going. Use paypal to pay, then collect. Open up a dispute and Paypal will refund the buyer as the seller cannot prove the item was delivered.

StaffsSW

arcon5 wrote: »

I also trust you both signed a bit of paper confirming the item has been collected, when and who by?

This is meaningless in any paypal case - they require online proof of delivery. The seller could have a DNA sample, original birth certificate and various members of the buyers' extended family hidden the basement as "proof", but it still doesn't mean that paypal will accept it and find in the sellers favour.

I know this isn't what you want to hear, but no point sugar-coating it. As many have said above, your only hope is a civil case against the "buyer"/person who collected the item. This is a well worn scam, and I've yet to see or hear of anyone who has successfully claimed against paypal in such an event.

homie44

On a different matter: What if a PayPal account holder is someone who is not 18 yet? In order to use PayPal you have to be 18 years old. If the registered account is registered on the name of someone who is not 18 yet, will this cause PayPal legal problems in regard to the unauthorised claim and/or 'debt collectors'? Or the opposite, the account holder will get into more trouble?

Regards,
George