Paypal hounding me for friend's debt

vokonta · #1 07-20-2010

Yeah, i am interested in hearing from those that have successfully gone past this limitation barrier.
My case may not be peculiar. Perhaps others can shed some advise or assistance.

I am UK based ebayer for 5 years. Doing well and ok.
My housemate opened an ebay account about 12months ago with his own details. As we lived together, we most times assist each and we share same pc.
We obviously have separate paypal account all verified.
Take note - my friend's details are completely different from mine with the exception of same address at one point.
My friend moved out few months ago but we still kept in touch.
Cos of our bond, he would assist me deal with me account when i am on hols and vice versa.
Problem now is that friend has run into serious difficulty. Was stung by a supplier he used and he can't get refund. Item was dropship item, hence ebay customer has paid him. He cannot refund from his own pocket; hence 3 buyers put in claim, totalling 2K.
Paypal is obviously not happy cos they had to pay out and his account his negative.
They proceed to limit his account and ebay does same as well.
4 days after this, i get an email from paypal saying my own paypal account has been limited. It states provide ID, POR etc. No probs with this as i can easily do this. However one their request shocked me. It said, i should resolve complaints and negative balance with an associated account and goes on to provide email account address for this account.
I was confused and called paypal. After 2 million years on hold, a lady said 'yes, this other account (friends account) is associated with mine cos it's got same computer ID. I argued and was told paypal systems can't lie and that we shared same address, same computer etc hence it is owned by same person.
I explained the relationship and stated my friend had moved out etc but they weren't having it.
Called ebay and was told - tell your friend to resolve his account and your limitation would be removed.
I am still in a state of shock. How can they expect me to force or control my friend to restore his account. They state he still lives with me. Let's assume this is correct, does that make me liable for his actions?

My friend has sent them a message stating clearly that he is the person solely responsible for his account and that it shouldn't be discussed or divulged to me or anyone else.
Surely, on the strength of the letter, shouldn't they let my restriction off. It seems they want their money restored back in my friend;s account and they feel if they hound me, i would chase him to pay back. But the sad truth is he hasnt got the money.
Pls where does all this leave me. What are my options. Pls assist and advise.

BTW - i have read online how a wife was treated a similar as i have just experienced cos her husband sharing same address owed paypal money. Surely this approach can't be right.

vokonta · #2 07-20-2010

Decided to post this the subscriber forum so as to get better response. Previously added this under an existing thread elsewhere.

To update on the latest:
The last phone call i had with PP was scary. The dude initially sounded confident that he could remove the limitation on the strength of my explanation and the signed letter uploaded by my friend to them saying he was solely responsible for his account and would make arrangement to clear in instalment with their collection dept.
The PP dude was quite sympathetic. He put me on hold to chat with a so called manager and came back after 5 mins to deliver u -turn bombshell as follows: 'The links between you and your friend's account is so strong that we can LEGALLY chase you for the debt'
Cos i had already sent them pre legal notice, i insisted i wanted a written legal reason, but PP dude responded by saying they would provide it in court if i proceed with court action!!!
Also got an email from ppelce@paypal dot co dot uk saying the limitation would still remain until issues with related accounts are resolved. It states this is their final response letter.

While i agree that there was and is a strong association between me and friend's account largely cos of logging in and out frequency from same computer; occasional similar listings and PP transfer between ourselves; does all this make me legally responsible for his debt especially as he has fully accepted his debt.
This is the part that beats me.
If they feel we are one and same person which clearly is fraud, why havent they called Police?
After reviewing this forum, i know all the info they could possible have and i can honestly defend and explain all of them in a court of law.
I am really getting confused and not sure what my next step will be.

rsot · #3 07-20-2010

First of all, easy on the amount of verbal typing - that's a lot with not much spacing =(

Well your friend "Was stung by a supplier he used and he can't get refund. Item was dropship item, hence ebay customer has paid him. He cannot refund from his own pocket; hence 3 buyers put in claim, totalling 2K." - that sucks but he/she/it must deal with customers then deal with supplier - he is liable for customer complaints so that is his part. Paypal/ebay has a legal claim to him and will chase him in collections - if this is possible in UK - I know that this is possible in Canada and U.S.

Secondly, no matter what those goons at eBay and Paypal say, they cannot take legal claim on you. Yes your account is limited - your account is done. Let it go - unfortunately, lots of stories of this happen - you're wasting your time fighting and your breath - none of these CSRs are lawyers - their bottom line is to get SOMEONE to cough up the dough.

Is your phone number with them? Yes - you will get calls - change the number. Your address with them? You may get letters in friend's name - write "Moved/No longer resides here". If file goes to collection, your friend's credit history will be touched not yours.

IP address and physical address linking IS NOT ENOUGH LEGAL PROOF to hold you responsbile in court. Hell, you have proof it was your friend - unless you be lying...

All the best.

vokonta · #4 07-20-2010

Apologies for the long post but i felt it was best to dish out detailed info so as to limit too many follow questions from other forumites.

Thanks for your input.

rsot · #5 07-20-2010

It's no problem - i read through it - lot of people might not due to its length is all i am saying =)

I hope you get it sorted out but yes, I know it's a headache. I won't preach anything but that's why you have to keep internet money-making stunts separate from housemates - best friends and family, maybe ok to work with and I say that so hesitantly because even then, it's sad to see how many times money issues destroys relationships.

jeffweico · #6 07-20-2010

This is truly awful!

This is a PERFECT EXAMPLE of why PayPal needs to be regulated.

I cannot imagine that you would be found LEGALLY responsible for this under UK law (or any law, anywhere, except in PayPalLand).

For PayPal to have this rule is just ridiculous. If any BANK tried to get away with that, they would be fined.

Still PayPal gets away with that and worse all the time.

I just wish that eBay sellers and PayPal customers were given the opportunity to rate their transactions with those companies. And that PayPal and eBay had to meet THE SAME STANDARDS they impose on sellers.