Predatory Customer Threatening Small E-Commerce Business With Legal Action

[quincy]

@adjusterjack throughout this week we have issued the person in question around $6,000 in refunds and have maybe $1,000 to $1,500 more to issue them, then 99.9% of their unfulfilled merchandise/unused gift cards will be refunded. While it hurts financially right now, the absurd discounts and bonuses that he was able to somehow get from us would have costed us more in the long run than the refunds we are issuing him. I didn't want us to give this guy any ammunition to sue us. The final refunds will be sent tomorrow, then we'll be sending him records of every single order he ever placed, transaction records... everything... and giving him some time to look it over and respond in case he happens to find some gift card hidden away in his web of transactions that we forgot to refund. After we give him ample time to respond, we're blocking him and we're done with it.

His pattern of excessive damage complaints with our company and at least 2 of our peers (they told us via e-mail he was pulling the same stuff with them, at least 1 would likely be willing to sign a sworn affidavit confirming), after his repeated transactions with us using one name but paying with another, after his constant demands for "cash" refunds for gift cards he never paid for... we surely have enough to prove criminal wrongdoing on his part. He's malicious and clearly gets some sick joy out of this, but I don't think he's stupid: he probably realizes that we have enough against him to make a counter-claim.

I find it unlikely that he'll just ride off into the sunset after the refund and review processes are complete. He's most likely going to try again and/or throw a fit by filing complaints about us on various 3rd party websites. If he goes too far we might consider legal action against him.

This individual has been an absolute nightmare for our team and has been rude, difficult and suspicious/fraudulent. We expect him to come back a 3rd time and try again, and this time we're prepared by looking daily for any suspicious new accounts, or customers using the same address/similar names, or customers repeating similar patterns as this guy. If he does try again, our hope is that if we keep banning and stopping him quickly that he'll eventually give up. If he doesn't, we have discussed pursuing legal charges against him.

I'm not sure what he could sue us for if we've refunded 99.9% of his unfulfilled merchandise and we've been totally polite and professional the entire time (unlike him), but he's malicious enough where he might try something. We've discussed this case with our small business attorney who gave us great advice and information, and if it comes down to it we are prepared to pursue charges against him which might be the only way to deter him from doing stuff like this to other companies in the future.

It sounds like you need your business law attorney to personally review your business operations and help you with necessary revisions. You appear to need limits and restrictions placed on your online sales, refunds, and uses of gift cards. A business cannot financially survive for long with customer abuses of the sort you are experiencing.

If you are out money, you can always sue to recover your costs.

 

[FiguringThingsOut]

Good advice thanks, and we're definitely gonna be more diligent about keeping an eye on the customers moving forward.

@quincy @Zigner @adjusterjack When the customer originally signed up to our website, he was using his actual name and had a PayPal account under his name. After we banned him then he came back a 2nd time, he used his apparent wife's *maiden* name for the account on our website, and also had a PayPal account using his wife's maiden name. Since the accounts both on our website and on PayPal where the payments were sent from are in her name, and it was her maiden name... wouldn't she technically be the one who has to file a lawsuit? Also, according to the internet her current legal name uses the same last name as him, not her maiden name... would this cause problems for him when trying to actually file a claim?

Thank you all again for your thoughts and feedback.

It sounds like you need your business law attorney to personally review your business operations and help you with necessary revisions. You appear to need limits and restrictions placed on your online sales, refunds, and uses of gift cards. A business cannot financially survive for long with customer abuses of the sort you are experiencing.

If you are out money, you can always sue to recover your costs.

 

[quincy]

Good advice thanks, and we're definitely gonna be more diligent about keeping an eye on the customers moving forward.

@quincy @Zigner @adjusterjack When the customer originally signed up to our website, he was using his actual name and had a PayPal account under his name. After we banned him then he came back a 2nd time, he used his apparent wife's *maiden* name for the account on our website, and also had a PayPal account using his wife's maiden name. Since the accounts both on our website and on PayPal where the payments were sent from are in her name, and it was her maiden name... wouldn't she technically be the one who has to file a lawsuit? Also, according to the internet her current legal name uses the same last name as him, not her maiden name... would this cause problems for him when trying to actually file a claim?

Thank you all again for your thoughts and feedback.

I actually doubt that you will be sued. This couple seems to be scamming you. If so, they probably will want to avoid court. If sued, however, you can counter sue.

Although the following suggestions should be discussed with your attorney, I suggest you complete whatever refunds you feel are necessary, ban once again the couple’s accounts from all future purchases, and then see what happens. You also might want to seriously consider eliminating gift cards as a way to purchase goods and requiring pre-purchase deposits for expensive items.

As to damage claims, all items sent should be insured.