Paypal Credit Card Chargeback

[wpps2011]

What is the name of your state (only U.S. law)? WI

I sold an Apple Macbook on ebay in approximately March 2011 for approximately $2100. The buyer (via secure ebay message) paid the full amount via paypal and also requested overnight shipping. I informed her that I could ship overnight but it would cost an additional $19. I invoiced her and she paid the additional $19. I shipped the product to the confirmed address on her paypal account which read something like (for example purposes only):

120 S Eighth St
Houston, TX 11111

Approximately 2-3 days later, the buyer emailed to say the product didnt arrive and asked me to check on it. The USPS tracking website stated "No such address, returning to sender". I informed her and she said "Oh, I'm sorry, the address is correct but the city is _____ (another nearby city). Can you redirect it?".

I spoke with the postmaser and when the package arrived back at my home post office, they redirected it and shipped it to (for example):

120 S Eighth St
City Y, TX 11112

The USPS shipping indicates the package was delivered to the second city. Approximately a month later, I was informed there was a dispute on paypal that this person never received the computer. I spoke with paypal and they informed me that a credit card chargeback and had been filed and I did not qualify for their seller protection policy because I did not ship EXACTLY to the confirmed paypal address. I spoke with the paypal representative and pled that the confirmed paypal address DID NOT EXIST, and I shipped it to exactly what was indicated, only with a different city. I questioned how could a confirmed address not exist?. He stated that he was going to reward the $19 charge to me because that showed the address I shipped it to in the notes, and he thought I did the reasonable thing in reshipping it like that. I asked paypal if I could provide email copies, tracking information, etc to support my case when they defend me (I was not able to defend myself in the CC chargeback due to paypal policy), and I was told to email it in.

However, a few weeks later (Approximately July), I was informed that I had lost both chargeback disputes and now had an approximately $2,100 negative balance and my account was frozen until it was paid in full. At that point, frustrated and upset, I just stopped using paypal and wrote the account off in my mind. Occasionally they would send me an email saying they are trying to reach me to correct my negative balance and I would delete it. Today, I received a letter from a collections agency about this balance.

Is there anything I can do? Should I bite the bullet and pay the amount? Is it worth engaging a lawyer? I'm sure paypal has their terms structured in a way that I need to play an appeal by their rules, which I don't feel I would get a fair shot at.

Any advice is appreciated!

 

[Astrolink]

Paypal language is very clear that you send the package to their registered address, which you changed to something else, regardless if their registered address was for real or not.

In other words, you were scammed by the buyer and you fell for it.

 

[KakitaOCU]

It's a painful lesson to learn. Always send to a verified address, always pay extra if you need to make sure you have a tracking number. Request signatures for anything big.

If you go through PayPal always follow their rules. If you start your own business and were processing payments directly insist on full address and CID from the customer, call the creditor and verify this information before you ship.

 

[davew128]

They will put something on your credit ..

Not necessarily.

 

[dscurlock]

Did you not have someone sign for the package?

I understand that you sent the package , and it ended up in another city, but someone rec'd the package. Did it arrive at someones house? and if it did, then someone at the house is involved in fraud. Get your papers in order, call the DA in their area, call the police to file a report.

If the scam is that large, your first thought would be call their local police and file a police report. for one, filing a police report tells others you maybe telling the truth, only an idiot would lie to police as that would just be crazy, and people do lie to the police and on the stand, but if you want people to take you more serious, then file a police report.

If you are going to file big disputes, then you need something
like a police report to at least help you out...

Even though you may be out of luck, filing a report also does something else, it will alert them to that address
when if others should file a report to sending products to the same address, this is how they get caught...
but if you sit back and do nothing, then they scam the next person by using the address over and over....

I would more then bet someone at that address got your package.

 

[stilen621]

Any purchase thru PayPal over $250 has to be shipped with signature confirmation.

What is proof of delivery?
Proof of delivery indicates that the item was delivered to the recipient, and generally comes in the form of an online tracking number. It shows the city, state, and zip to which the package was shipped, the date the package was delivered, and its delivery status. For payments of $250 USD or more, a signature confirmation of receipt is also required. The proof of delivery doesn't need to show the full street address since some shipping companies don't include this information. The city and state or zip code (or equivalent) is normally acceptable.