Power Sellers Unite

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

Did you know that there's a seven-year time limit on PayPal chargebacks? Yeah, neither did we, and neither did Dan. He still had to fork over $38.41 owed to PayPal from an an unknown account belonging to him, even though he didn't recognize it. What?

So I got an email from Paypal that my account had been suspended for a $38.41 balance, so I called Paypal. I was informed by supervisor [redacted] that there was a chargeback on an account that I had no knowledge of from 2004 and my account would not be re-instated until the balance was paid. I disputed and they came back two hours later and said that it wasn't fraud. They said I could file a further dispute, but it would take 3-5 days. Since I had a couple of hundred dollars in my account from a recent Ebay sale, I had no choice but to give them the $38.41.

They were not able to provide any verification of the account. They never sent me any mail (they said they sent emails to an email address that I don't even know!) I'm feeling pretty ripped off about now. Has anyone else had Paypal hold their money hostage? I was under the general impression that they had to show some sort of proof. The fact that it's a fraudulent charge from 7 years ago that they're collecting on just doesn't sit well with me. Anyone think I'll ever see my $38.41 again?

It's unlikely. They should have to prove that this is a legitimate debt, which they haven't done, especially if Dan doesn't even recognize the account being charged.

http://consumerist.com/2011/08/paypal-you-owe-us-3841-from-2004-because-we-say-so.html

momto3dogs · Joined: 12 Jan 2011 Posts: 51

Sadly, neither PayPal or eBay feels the need to have legitimate reasons to get more money out of their users.

notime2play · Joined: 08 Apr 2011 Posts: 21

[b]Complaining is nice, but why doesn't someone actually DO something about it? This is such a clear cut case of abuse, it isn't even funny. Just take Paypal to small claims court. Make them prove everything and have a judge decide if the claim is legitimate.

Where I live it only costs $35 to file a case. They are served within days and the case is in front of a judge within 6-8 weeks. And when you win, you get all your costs back.

Think how important a win would be. You would empower thousands who have been screwed by paypal to take the same road. And perhaps even force the state's attorney generals to look into how they conduct business.

And at the court where you get the forms, there's usually a small law library with people more than willing to help you out. Isn't it worth $35 just to have paypal need to send a whole legal team to your town to embarrass themselves?

mojavelyn · Posted: Sat Aug 27, 2011 1:28 pm Post subject:

Better check with your state laws regard Small claims filing and the state of where the defendent is and PP's TOS regarding legal disputes. You have to file any claim in the home district of the respondent, in this case, California, with the Superior court of the County where PayPal is headquartered... AND in Small Claims, there are no lawyers involved, lawyers can help prepare the case, but they can't represent you in court. PayPal will probably send a paralegal or even someone from the secertary pool with the paper work, properly coached, of course.

Some moron attempted to sue me in Small claims based mistaken identity. Moron did file in CA, but in Los Angeles. I wrote to the court, and requested change of venue, due to my living in a different county. I didn't even appear. A certified letter appeared for me. Case dismissed without prejudice, and the claimant would have to re-file in my home county. And even if Moron had refiled in my county, I would have still made sure the case was heard in my home city, because that is my right as the respondent. And PayPal will do the same.

So if you aren't in PP's home district, and you file in your home district, its going to cost you. And you will have to double file, double filing fees.

And any monies over the actual costs involved have to be validated.