Charge back from Paypal for rental -- after renter checked in!

CarolF said:

I think this method would greatly increase the opportunity to be heard and negotiate with Paypal. Great idea.

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yeah, only Paypal will put a hold on the seller's money and won't let you withdraw it from your Paypal account to bank for like a month. They are very seller unfriendly.

JudyS said:

Well, Paypal has already ruled against me. Here is their email:

Hello Judy,

We've concluded our investigation into the transaction detailed below.

Because we determined that you did not meet the eligibility requirements for the PayPal Seller Protection Policy, you are being charged for this reversed transaction. We've returned the funds to the PayPal account holder, and your account will be debited for the amount of this transaction.

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There is also the possibility that a credit card may not have been involved, the PayPal account might've been taking money out of a bank account rather than a credit card account. It sounds like a PayPal account was used rather than just a credit card payment through PayPal without a PayPal account, though that could always just be the standard PayPal reply that doesn't bother to differentiate PayPal account holders and credit card payments.

Hello, everyone. I'm sorry to go so long without posting an update. I've been having a lot of health problems the past few years, and I was having a relapse end of November/beginning of December, although I seem to be doing better now. I also just got upset whenever I thought of this situation, so I didn't want to talk about it!

I want to give a big "Thank you" to BlueBoy for his help! BlueBoy went to the Harborside and spoke to the staff there, and offered to speak to the Paradise Island police, too. Although this is still unresolved (see below), I now have a contact at the Harborside, and offers of further help from them. Without someone going there in person, I don't think I'd have either of those things. Thanks very much, BlueBoy! :whoopie:

As an update, the situation is still unresolved, however, Paypal has reopened their investigation (or more accurately, the credit card company has reopened theirs.) I had already withdrawn the $1200 from the Paypal account before Paypal received the fraud complaint, and Paypal has billed me for the $1200 (or rather, my account is at -$1200.) Paypal threatened to suspend my account if I didn't pay the $1200, but they haven't followed through, perhaps because the investigation has been re-opened. Paypal has called me twice asking to return the $1200, but when I point out that they have an open investigation, they say OK. I'm willing to return the $1200 if I have to, but I feel Paypal has little incentive to keep investigating if I do. So, I'd rather wait.

Let's see if I can remember the other questions on this thread. I was asked if I ever spoke to the renter by phone. No, I called him both when setting up the rental and after the fraud complaint, but only got voice mail. I do think this was a "red flag" with the rental, but it was getting close to check-in and I was willing to take more risks than I would have further from check-in!

I did so some searches after the fraud complaint was made, including paying a few dollars for a reverse phone look-up. The phone number I have is a landline registered to the same name that the renter gave me, but the address on the phone is a PO Box. (I didn't even know you could register a landline to a PO Box!)

I don't know if I will try to pursue this any further. I know I shouldn't let this situation get to me, but I have to confess that it has. I'm also having trouble listing things on Craigslist (see this thread: http://www.tugbbs.com/forums/showthread.php?t=133975 ) Ugh, I'm generally too sick to use my timeshares and renting them out is such a hassle! I'm starting to regret ever buying my timeshares. I really have to work harder at selling some/giving some away.

Been reading this situation and I have really been educated in the way PayPal operates.

I always thought that once a credit card transaction was approved by PayPal then you would be OK. After all what is the ultimate purpose of a service like PayPal. They are the middleman for financial transactions. They get their cut and everyone is happy. Now I know the real deal!

Judy good luck to you, and I hope this does get resolved.

JudyS said:

I had already withdrawn the $1200 from the Paypal account before Paypal received the fraud complaint, and Paypal has billed me for the $1200 (or rather, my account is at -$1200.) Paypal threatened to suspend my account if I didn't pay the $1200, but they haven't followed through, perhaps because the investigation has been re-opened. Paypal has called me twice asking to return the $1200, but when I point out that they have an open investigation, they say OK. I'm willing to return the $1200 if I have to, but I feel Paypal has little incentive to keep investigating if I do. So, I'd rather wait.

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I think you are right about holding onto the $1200 as an incentive for Paypal to continue their investigation. As for future transactions I do think the Dave H post (below) is spot on for a timeshare transaction.

Originally Posted by Dave*H
Open a bank account and Paypal account that you use strictly as a seller. Make sure the bank account is set up to bounce any NSF withdrawal transactions. Do not attach any credit cards to the account. Once someone sends a payment, immediately move the money to another account. When a buyer files a dispute, they don't get the money until Paypal actually recovers the money from the seller. As a buyer, the way to protect yourself is to file the dispute with your credit card, not Paypal. As a seller in a dispute, it puts the burden on Paypal to figure out how they are going to get the money back. I've never had to go this far, but I'm betting Paypal makes one attempt to withdrawal the money and then tells the buyer so sorry, too bad. Not sure what happens if the buyer wins a credit card dispute, but you don't have the money in your account. At least that puts you in a better bargaining position with Paypal since you have the money and they don't.

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Cheryl20772 said:

yeah, only Paypal will put a hold on the seller's money and won't let you withdraw it from your Paypal account to bank for like a month. They are very seller unfriendly.

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That is why it is important to move the money out of the account immediately as suggested by Dave*H.

That will do nothing except force paypal to hold on to peoples money before they can withdraw it. You may not agree but the T & C's of paypal that you agree to before using it is that you are responsible for the chargebacks.

Judy, any updates...coming up on a month since your last post..

Thanks!

AFARR