PayPal - Do I have to worry about legal action?

Discussion in 'The Intelligence Cell' started by DavidCameroon, Nov 14, 2012.

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  1. Got this email a couple a days ago after PayPal accused me of "suspect" behaviour, do I need to worry about legal action as they think I owe them £350+ after a fellow who bought a laptop off me filed a case telling me I should reimburse him for cost of battery which has deteriorated, he refused he return the whole thing for a refund minus courier costs, bearing in mind that this thing was sold over 3 weeks ago, a few days before I got this following e-mail; the main thing I'm worried about is that PayPal will be issue him a refund (which will fail as I have cancelled all direct debits) and will think I owe them and threaten me with legal action as detailed below and what I've read online :police: they won't even tell me what the "certain activity" that took place relating to my account is???

    My current PayPal balance is -£350+ meaning they think I need to take immediate action to bring it into the £0+


    Dear xxx

    Important information:

    We regret to inform you that we’re initiating the closure of your PayPal account because of certain activity that took place relating to your account. This measure is necessary to protect us from potential financial losses.

    In addition, your related eBay account will remain closed due to this current PayPal action.

    Your right to appeal:

    We always perform a thorough investigation before deciding to initiate the closure of an account. However, we appreciate that from time to time misunderstandings can happen. If you wish, you can appeal our decision.
    Just get in touch with us and let us know. You can do so by logging in to your PayPal account at and clicking 'Contact Us' at the bottom of any PayPal page.

    Your account balance during the account closure period:

    This decision means we must oversee the appropriate movement of any money currently in your account. A gradual approach to account closure allows us to part ways, while considering any liabilities that may arise. Our aim is to review any valid buyer claims lodged against you. We must allow enough time for claims to be filed as these can take several months to be reported and resolved.

    How will the process work?

    We’ll hold any money currently in your account in accordance with section 2 below. We do this because it provides sufficient time for most claims, such as chargebacks, to be filed by other parties. These claims can result in financial loss. If your account balance is below zero, you’ll have to settle the amount owing on your account to avoid further action.

    Our first review at 30 days after you received your last payment will calculate our exposure and we’ll release any excess money to you at that time for withdrawal. We’ll communicate this to you at the time. This review can result in 3 different outcomes as detailed in sub-sections 2(1)-(3) below. We’ll always communicate the outcome of our reviews to you.

    1. We’ll release your entire remaining balance to you for withdrawal.
    Please note that if you choose not to withdraw the money at that point we reserve the right to re-coup any money at the next review; or

    2. We’ll release a part of your remaining balance to you. If this is the case we’ll inform you about how much money can be withdrawn. We’ll then conduct another review 30 days later that will repeat the process detailed under section 2; or 3. We won’t release any money to you if we deem our exposure to be greater than or equal to your available balance.

    Your account may be reviewed up to 5 times; at 30 day intervals until day
    180 from the date of the last payment received. If any money remains in your account at day 180 it will be made available for withdrawal at that point.

    Accounts with a balance owing to PayPal:

    If your account shows an amount owing to us, you must add money to ensure that the balance returns to zero. Please note that we reserve the right to recover the amount by legal means.

    A copy of our User Agreement can be found by clicking ‘Legal Agreements’ at the bottom of any PayPal page. Our right to close your PayPal account, and the retention of money, are covered in our User Agreement under sections
    10.2 and 10.3.

    PayPal Account Review
  2. By the very nature of it been a battery it will not last for ever. Bought as seen...........tell them and paypal to do one!
  3. Seems self explanatory.

    Edited to add- PayPal are well known for siding with the payer by default in the event of a dispute. Contact them and explain you've offered refund for return of goods and the buyer declined.

    Posted from the ARRSE Mobile app (iOS or Android)
  4. Are you sure the email IS from PayPal ??
  5. Wordsmith

    Wordsmith LE Book Reviewer

    The question is whether the laptop was 'fit for purpose' when sold. If it had a dodgy battery and you didn't point that out, if the laptop failed after just a few days, the buyer is probably entitled to the refund. After all, they thought they were buying a functional laptop. Your only 'get out of jail free' card would be if you could show the laptop was abused after receipt.

  6. TheIronDuke

    TheIronDuke LE Book Reviewer

    Not the point. This appears to be a common PayPal scam. Often pulled when people buy cars, but it can also work for laptops.

    1) Buyer buys thing
    2) Vendor gets paid
    3) Buyer claims a rip-off
    4) Vendor loses money from bank account because PayPal pull it back due to dispute
    5) Buyer has the goods and the money
    6) Buyer crashes Ebay account, fucks off and does it again.

    If your laptop was legit, and sold as described, I'd crash everything, freeze everything, pull all your money from PayPal (and ask myself why I had money in a made-up bank in the first place) then wait for them to send their dogs to my door.
    • Like Like x 2
  7. That was my first thought but the spelling and grammar is better than the average Nigerians. Goes without saying not to log in using the link in the e-mail though.

    Posted from the ARRSE Mobile app (iOS or Android)
  8. There were no funds in it, I empty PP daily and yes it is defo legit as balance is now minus, as for being fit for purpose if that guy is waiting borderline a month than yes its all well
  9. I would contact every financial institute that deals with problems like this as well as trading standards and watchdog and anywhere it will get publicity and show paypal not to be impartial by not entering into a dialogue with you before freezing your account.
    You said you offered a refund minus courier costs, that will help because it shows you tried to solve the problem.
    Good luck and let us all know how it pans out.
  10. What is this PayPal you talk about?

    Credit or Debit Card transactions are at least protected.
    PayPal is more like dealing with a 1950's gang of spivs at times!!
  11. e

    Bearing in mind the call centres are based in Dublin, I would think thats quite inappropriate, you need to be intelligent to be a spiv
  12. BiscuitsAB

    BiscuitsAB LE Moderator

    If it was an auction in the UK then my understanding is tough titty on the buyer, if you did it as a buy it now then its your responsibility. BUT IVE BEEN WRONG IN THE LAW FORUM BEFORE! so don't take my word check out the law.