Advice please re. Paypal negative balance.

[merlin's S4]

Can anyone offer any advice?

A few months ago I sold an item on ebay and was paid with Paypal. I shipped the item and it was received by the buyer within a few days. The item was signed for as being received in good condition and the buyer contacted me to say that he was happy with the item. He also left positive feedback on my ebay account.

A month later I received an email from Paypal notifying me that the buyer had entered into a dispute claiming that the item was damaged. The amount in question was removed from my account immediately leaving me with a substantial negative balance. I refused to offer a refund insisting that the item was not damaged when I sent it but also that as he'd had the item for a month before entering into a dispute, as far as I was aware anything could have happened to it in that time. Paypal in their infinite wisdom found in the buyer's favour and instructed him to return the item to me which he did. Paypal are now hassling me for their money back and I'm not inclined to give it to them because a; I don't have it and b; I feel I've been stitched up!!

I have read somewhere on the net that as I have not entered into a credit agreement with Paypal, they have no right to remove money that I don't have from my account without my authorisation and as such cannot expect it to be repaid. On the other hand I believe that they are likely to refer it to one of their collection agencies who besides being a PITA, may have the ability to affect my credit rating.

Does anyone have any ideas about the best way to proceed with this?

Cheers!!!

[urS6Tom]

What was the damage to the item? Is it in the same condition as when you first sent it?

[Le S2 Audi]

I would contact "Consumer Direct" part of the OFT I believe, and see what they have to say....

If not them then try your local trading standards office...

The distance selling act that Ebay now comply with, only allows the buyer 7 days after reciept of the item to return the item....

Do you have any proof that its been damaged by the other person??

I have read some real horror stories about paypal and in some respects cos the are outside the UK they seem to do whatever they like!!!

[Acidburn]

If its not above £500 then half the time its not worth the hassle for paypal or another company to chase for the money.

I know another ebay seller who had the same happen and his paypal is quite considerably overdrawn, all he done was removed any cards associated with it and started up a new account.

[merlin's S4]

Thanks for your replies. The item has minor damage now which was definately not the case when I sent it but this is difficult for me to prove. If the buyer had notified me of the damage immediately or preferably if they'd signed for the item as damaged then I could have done something about it. It's the fact that they left it a month before supposedly noticing the damage that leads me to believe that they somehow caused the damage in this time.

Yes I think I will probably have to speak to consumer direct and/or citizens advice.

[driftin jo]

You have all the evidence you need , positive feedback left for item etc, send them an email and point them in the right direction, if that does not work , tell them you will seek legal advice as they are clearly in the wrong, they will back down.

[lostaudi]

I recently have had paypal problems

Bought a pair of later light clusters from ebay with paypal

£27 + £18 postage

On recipt of both units both where damaged "maybe royal mail"

Seller was not interested told me that its my problem take it up with royal mail.

Filled a complaint with payal and 1 moth later they told me to return the lights to the seller at my cost and I would be refuded the cost - the original postage

Do the math my total cost £45

I have to pay further £18 to send back total cost now £63

They will refund me £27
My total loss on reciving a damaged item £36 and nothing to show for it.

I didnt bother returning it and took the loss.