Scammed because of payment sent as "gift" via Paypal

[Applez]

Illinois

So I bought an expensive jacket (worth almost $700) and paid the seller via the Gift option through Paypal, returned the jacket because it was damaged and the seller is not responding to me and has not refunded the money.

In case some of you don't know, buyers like me don't get any protection if payment is sent as gift. I know I screwed up, but I wonder: is there any way to get my money back? Would small claims court work? I have proof that a purchase was made and that the item was returned to the seller. My only other option that I can think of is filing a chargeback, but then Paypal would leave my account with a negative balance of the amount of the chargeback and I would then have to pay Paypal back. If you guys could please withhold judgment on my stupidity and simply help me find a way to get my money back, I'd really appreciate it.

Thanks.

 

[adjusterjack]

You would likely have to sue the seller where he lived.

Might not be practical or cost effective if he lives in another state.

 

[Applez]

You would likely have to sue the seller where he lived.

Might not be practical or cost effective if he lives in another state.

Well then luckily, he's in Wisconsin, which is less than an hours drive away.

My thing is, since I paid the guy via the gift option through PayPal (which is a "no no" according to PayPal policy), I wonder if that would hinder me in some way legally through the court systems? Would it affect my case in any way? Or is this an easy case to win?

 

[adjusterjack]

You really did screw up. The guy was an hour away. For $700 you should have made the drive, inspected the item, and paid cash for it if it was OK, and rejected it if it wasn't.

That paypal says no gift payment doesn't eliminate your contract with the seller.

There is no such thing as an "easy" case but you appear to be able to show that the seller received payment and sent you the item.

The problem I see is whether or not your complied with the seller's return policy. Did you have any discussion as to the defective item? Get approval for its return? Have documentation that he actually received it?

 

[Applez]

Yes I did screw up, but I'd asked if I can pay them a visit and they replied with, "it's by appointment only. Was there anything special you needed." When I told them, "not much, just one item", they never replied. I mean them not replying did say something about their demeanor, but in all honesty, I would not have thought for a second that they'd pull something like this. But I did try, though.

To answer your questions, it's a bit tricky, but yes to most of what you asked. Two things right off the bat. I initially saw the jacket on eBay, though I didn't buy the item through eBay, I paid him directly through Paypal. However, eBay has buyer protection to protect buyers against items not as described (which this was - the damage wasn't mentioned) and I'm sure there are consumer laws out there outside of both Paypal and eBay that would protect me against something receiving something like this. I mean I would assume it's some level of false advertising? Now the item said "Final Sale" and "No Returns" and I was more than willing to accept that and try to resell the jacket myself if it didn't actually have issues, but once I received it and noticed it was damaged, I told him I'd like to send it back. I said to him in email, "I'm going to try and find an easy fix, but if I can't, I'd like this send it back to you. Is this your return address?" and he said, "Yes, keep me posted." So I sent it back, I have the delivery confirmation number and the guy even has the same exact jacket relisted at this moment.

I was so bothered by it that I didn't know what to do besides file an Unauthorized Charge claim with Paypal. That seemed like my only out. Because if I did a charge-back through my bank, then Paypal would leave me with a negative balance in my account (since, again, I'm not covered because of the way I sent the payment) and then I would have to pay Paypal back. Crappy situation I put myself in, I know, but it's definitely a valuable lesson (both figuratively and literally) that I've learned.

 

[adjusterjack]

At this point all I can suggest is that you sue him in small claims court for the $700.

But first I suggest filling out a small claims complaint (don't file it yet) and attach it to a demand letter for the return of the $700 by such and such a deadline date and if you don't get it by the deadline date you will file your lawsuit.

Attaching the form indicates that you are aware of the small claims process and mean business. If that doesn't elicit a refund, be willing and able to sue because, if you aren't, you kiss the money goodbye.

 

[kentucky1792]

You used the term "chargeback" did you by chance fund the PayPal gift using your bank credit card? or was it from your bank account balance? if it was a balance then it would be called a bank reversal or ACH return.

You could still try talking to your bank and give them the online viewable delivery confirmation number used to send the package back to the recipient just to see if they would present that info to PayPal. Also if you call PayPal have the auction number handy so you can show a link between the PayPal gift email address and the eBay auction email address saying you were told by the seller to do the purchase that way.

FYI, by doing an off eBay sale you saved the seller about $90 in fees, or if you had sent the payment via goods & services it would have cost the seller about $20 in fees but you would have retained PayPal protection.