Paypal collection agencies called.

sheishollywood

LiveLaughLove
O.G.
Nov 29, 2006
4,374
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I'll try to make this long story short.

Basically a long time ago, I sold a bunch of my old items. This lady who bought them, has purchased items previously from me. I have a lot of old vintage name brand items, antiques etc that I was selling off to clear room and have extra cash.

After a MONTH of this, she tried to scam me. She disputed the item as non-delivery. Silly for her I had the tracking information etc. So, the dispute was closed. She was furious so she decided to do a chargeback.

She made the chargeback as ITEM NOT DESCRIBED. Fishy how something she didn't receive was all of a sudden not as described.

So, I contacted paypal and they said that I should make an appeal. They agreed that it was a little TOO FISHY and said it seems as though she is being fraudulent.

They're agreement is this:
For what situations will I receive seller protection coverage?
  • Credit card chargebacks from fraudulent card use
  • Credit card chargebacks for false claims of non-delivery
  • Buyer complaints for false claims of non-delivery
Which I should be covered for against false claims.

So now I have this wacked out company who claims to be contacting me in regards to my balance is now asking for this money back.

Do they really have authority to do so considering that the last time I talked to this crazy lady, her chargeback wasn't even granted and they had taken funds out of my account?
 
If I were you I most deifinitely wouldn't be paying anything but that company is going to hound the heck out of you. I would find a finance message board (maybe bankrate.com has one?) and ask your question there.
 
Go to PaypalSucks.com They have very helpful instructions on how to dispute these claims with your credit agency (here in Canada it's equifax and another one).

The collectors have hounded me twice about this one issue I had with a scam artist a couple years ago and I have found great help online.
 
I would first tell the collection company to send you their request in writing, an do not entertain any demands over the phone. Then, send them a certified letter explaining the situation, along with copies of any documents, e-mails, etc. that prove your side of the story. Ask them in the letter not to contact you with any further collection calls. Once you request it in writing, they legally cannot contact you by phone anymore. I don't know how much money we're talking about here, but if it's less than a couple thousand, it probably will not be worth it to them to pursue it any longer.
 
This lady robbed me of $3000 (CAD). I'm talking about vintage tiffany vases and such that I sold off to pay tuition for (which she clearly knew).

If she hasn't returned the items, is it a valid charge back?

I heard that if the items have not been return it is not valid. Because it's almost theft.
 
Ok, so let me make sure I understand- is this collection company representing Paypal or the credit card company? If it's Paypal, they never should have removed the money from your account in the first place, because you said they dismissed her claim because you had the tracking info. And since a buyer can only file one claim through Paypal, that should have been the end of it. If she then did a chargeback, then did the credit card company force Paypal to return the money? Did you then follow up with the credit card company? What proof did they have? I guess I don't understand how you lost out on this when she never returned the items, unless you just didn't follow up with the credit card company. I'm confused... Also, how many years ago did this happen, when did the collection agency first contact you, and what state do you live in?
 
Whoops sorry I didn't mean to mix things up. Just wanted clarification whether or not a charge back is really actually valid if the buyer didn't return the items.

The collections is representing Paypal.

Right. When she made a dispute through paypal they dismissed her because she said it was a non-receipt which I provided tracking. Then she made a chargeback under not as described. I contacted them and said am I still under seller protection because it is a false claim. They said yes. They did not hold their word. I asked for an appeal. Nothing happened. I had reps side with me. Many of them actually said that I should get an appeal. But nothing went through. "I'll take care of that" was a load of BS on Paypal's part.

After the initial dispute through paypal she did a charge back. Paypal would not release any info as to what credit card company it was and there are no records saying that the charge back has actually been granted from the company and placed back into the buyer's account. I only got an email saying the dispute was lost but with no verification or proof.

I contacted paypal in regards to the missing merchandise and how it was never returned and they said they will contact the seller however she never returned it or emailed me to verify if I have received the items. So I am here to believe that the charge back actually went through? I don't think so. It seems as though they're just asking for these funds. They also dubbed my account before the charge back was even released to the buyer - last I heard the charge back never was granted.

The initial transaction happened in Nov. The first dispute in January (the beginning), the charge backs in March (MONTHS after), and the collection agency called my old phone (which now belongs to my brother) today.

Ok, so let me make sure I understand- is this collection company representing Paypal or the credit card company? If it's Paypal, they never should have removed the money from your account in the first place, because you said they dismissed her claim because you had the tracking info. And since a buyer can only file one claim through Paypal, that should have been the end of it. If she then did a chargeback, then did the credit card company force Paypal to return the money? Did you then follow up with the credit card company? What proof did they have? I guess I don't understand how you lost out on this when she never returned the items, unless you just didn't follow up with the credit card company. I'm confused... Also, how many years ago did this happen, when did the collection agency first contact you, and what state do you live in?
 
Oh, ok, I thought you meant years ago. I was going to throw in a statute of limitations argument that their time is up to pursue this, but it's usually 6-10 years in most states, so you're out of luck on that one. What a mess!! It sounds like Paypal seriously has their records mixed up. I don't know anything about Paypal's hierarchy, but you need to talk to some head honcho to get this straightened out. Unless Paypal can provide you with paper documentation from the credit card company that the chargeback has gone through, and what proof the buyer had to substantiate the chargeback, I would not think they have the right to collect this money from you. At the very least, somebody should have gotten this woman to provide tracking information. You should be entitled to that much! I am an attorney, but not in the area of consumer transactions, so this is the end of my pseudo-not-actually legal advice:smile: Here's a link to the FTC's guidelines on fair debt collection, just so you know what your rights are: http://www.ftc.gov/bcp/conline/pubs/credit/fdc.shtm

You might also want to contact the Better Business Bureau in the state where Paypal is incorporated, which looks to be San Jose, CA. You can file a complaint with them, and they might be able to help you communicate with Paypal or refer you to an attorney. Hope this helps, and good luck!:smile:
 
Thanks so much for your help!

I am reading up on the BC Collections Fair Practice Act and the Consumer Protection Act in my area. Just to see where I stand on this. The collection agency said that they would "settle for 50%" of the amount due. To me that seems very fishy. Like, "You owe me this amount, but if you fedex me a check for 50% of that then you're off the hook" it doesn't seem to me that that's fair practice... It feels a little under the table. Also, the only people you can ever get a hold of at Paypal is their customer service agents. I highly doubt that they have access to much (if any) documentations. The only thing that they have knowledge of is whether or not a faxed receipt had been submitted by either myself or the buyer account. So the chances of me getting a manager is very unlikely...

Do you suggest or advice me to contact the collections agency one more time and just say unless they have written documentation and proof the funds being owed other than my account being in a negative (proof as in credit card documents) that I wish to no longer speak with them?

I know that if I say I do not want any more phone calls they have to quit calling, however they can definitely get my attention through a law suit. But I would doubt paypal would pay that much money to come here to sue me, for the $3000 chunk change in their eyes?

You're right, this is a mess.
 
What I would do personally is to explain the whole thing in writing to the collection agency. Be as detailed as possible, and provide any documentation you have. Tell them this debt is not valid, and ask them to provide documentation of a valid chargeback, or you will not pay. They would have to provide this documentation in court, so if you ask for it and they don't have it, that pretty much tells me they won't sue you. They'd probably have to pay an attorney more than $3k just to represent them in court. And if they don't even have the documentation, they have no claim. Wait for them to contact you again (request by writing only). If they don't have anything, then write them back asking them to stop contacting you. If they are going to file a lawsuit, they'll contact you to give you notice of it, and then you can decide what to do. And as far as the 50% settlement offer, they do that all the time, and it's perfectly legal. You might consider it as a last resort. Remember to keep copies of everything you send them, and send everything certified, return receipt requested.

Ebay is so worthwhile, isn't it?:P
 
Bellafleur! Thanks so much you're a life saver!!

Right now my problem is that I have no idea what actual company they are. They just say NCO and I have their phone number... that's about it. But it's a 866 number.
 
If you go to the Ebay discussion boards, there is one specifically for Paypal - lots of posters both for and against paypal, but they have pretty much seen every scam going, and may be able to give you better advice than I can!

In the meantime, I would phone Paypal up again and verify that they have actually sent the debt out for recovery. I would also think about filing criminal / theft charges on the woman that filed the chargeback (you have her address right?) - not that I know Canadian law at all, but here at the very least we could file for postal fraud.

I hope this works out for you - it's so unfair that you get chased by debt collectors and this woman gets all the money.