admin : Thursday, October 28, 2010, 18:50
PayPal Not Releasing Funds For Bogus Chargeback
I sold a $4,000 motorcycle on ebay. The terms included a $500 deposit to be received within 48 hours after closing of the auction. The deposit was to hold the bike. Also included in the agreement was that the seller (myself) was responsible for the shipping and costs for shipping, the motorcycle to be delivered within 7 days.
The buyer made the deposit payment through PayPal, but after 2 months of stalling and making excuses never actually completed transaction. So I started an ebay dispute and won, and my fees were refunded.
Five months later, however, the buyer initiated a chargeback with his credit card company for the deposit payment he had made. In turn, PayPal has frozen my account until I provide “proof of shipment”. Of course, the seller never actually paid for the motorcycle, only the $500 deposit for me to hold it for seven days.
Even though I sent the original listing which stated the terms of the sale, as well as evidence that I had disputed with ebay and won, PayPal refused to release my funds. I sent a letter to Ed Eger, head of US operations for Paypal, but received no response.
Submitted By Scott Dobson of Kalamazoo, MI USA
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Regardless of what your terms are you should not be able to keep the $500. I understand the buyer is a non paying weazel and deserves to be punished. To expect that the 500 bucks to remain yours is out of the question regardless of what your auction stated. eBay and PayPal’s rules are the ones that matter. Reminds me of years ago when I put a 1000 security deposit down on an apartment. Things didn’t work out and I never moved in and the weazel bitch did everything possible to not give the deposit back. Your transaction was never completed and it is not like you are storing the bike for him so using a storage excuse is out of the question as the item was yours beforehand, during and after the transaction fell through. Of course PayPal is going to hold the money b/c they are not going to shell out 500 bucks to pay for money that you basically would be stealing if you kept it. Maybe the buyer got cold feet or thought you maybe about to rip him off and from your statements here that seems like a fair assumption.