Making a Direct Debit Indemnity claim

agrinnall

I think it's too tenuous a connection to work, but maybe Paypal won't object to the reversal of the DD if the bank do agree to go ahead - however, if that is the case, then I don't really see why they just won't refund themselves.

hels2308

agrinnall wrote: »

I think it's too tenuous a connection to work, but maybe Paypal won't object to the reversal of the DD if the bank do agree to go ahead - however, if that is the case, then I don't really see why they just won't refund themselves.

PayPal can only open a dispute on a payment if you send the payment using the 'goods and services' option. This comes at a cost of 3%, but offers you insurance on the payment. I wasn't aware of this, so paid using the 'friends and family' option, as this is the one I've always used. They suggested pursuing a direct debit indemnity claim as an alternative solution.

hels2308

UPDATE: So, I spoke to my bank (Natwest), but they said they can't do a DD Indemnity claim in this case, as they said the guarantee doesn't cover PayPal payments. Anyone have any experience with this? I would have thought that it covered all direct debit payments? Any advice would be great! Thanks

jonesMUFCforever

Hels - what NW have told you may or not be true but I'm 100% certain that in the end Paypal will debit NW back and ultimately your bank account.
They have stopped you having false hope.

All direct debit indemnities work this way - if the original debtor can show that the direct debit was taken correctly they can be reversed.

I would push Paypal to refund but if they refuse because you used the friends and family option then basically you are stuffed.

hels2308

jonesMUFCforever wrote: »

Hels - what NW have told you may or not be true but I'm 100% certain that in the end Paypal will debit NW back and ultimately your bank account.
They have stopped you having false hope.

All direct debit indemnities work this way - if the original debtor can show that the direct debit was taken correctly they can be reversed.

I would push Paypal to refund but if they refuse because you used the friends and family option then basically you are stuffed.

Thanks. You're probably right on both counts, it's just beyond frustrating to not be able to do more about it. I spoke to the bank about doing a chargeback but was told it wasn't possible. The guy I spoke to was very nice, but was clearly reading directly off the screen and didn't seem to have a lot of insight into how the system works. I will call back and get a second opinion, and if that fails I'll try PayPal again. I've reported it to Action Fraud but from what I understand, there's often very little they can do. It's too much money to just shrug and walk away though, I have no choice but to keep trying. Never ever ever ever buying anything off gumtree again!!!!

jonesMUFCforever

Your last sentence is the most sensible thing you have posted

Gumtree = fraud personified.

hels2308

jonesMUFCforever wrote: »

Your last sentence is the most sensible thing you have posted

Gumtree = fraud personified.

Yeah, learnt that the hard way! Really shocking that people would be so dishonest, I just can't get my head around it. I definitely won't be so trusting in the future.

gunsandbanjos

Why exactly should the bank take the loss for this?

hels2308

gunsandbanjos wrote: »

Why exactly should the bank take the loss for this?

Why do you think the bank would take the loss? That's not how direct debit indemnity claims work. The bank effectively takes the direct debit back from PayPal - which PayPal have agreed to. PayPal would then recoup the money from the seller. The bank loses nothing. Not that it matters now, as the bank can't do this.

gunsandbanjos

hels2308 wrote: »

Why do you think the bank would take the loss? That's not how direct debit indemnity claims work. The bank effectively takes the direct debit back from PayPal - which PayPal have agreed to. PayPal would then recoup the money from the seller. The bank loses nothing. Not that it matters now, as the bank can't do this.

Sorry, that's what happens when I read stuff while half asleep!