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Troubles with a Business Account
 

I have a paypal business account that is hooked into my LLC bank account. I have a personal paypal/ebay account as well so none of the information that I submitted on the LLC paypal account are actually accurate besides the bank account. I sold an item on ebay for 5000+. Once the payment was received I automatically transfered the money to my bank account. The buyer filed a claim on the item saying he never received the item, when in fact USPS confirmed delivery of the package. I provided all the information to paypal and called them several times, but they said because the item was worth more than 250 dollars they buyer had to confirm delivery and they awarded the claim in his favor.
Now I'm not that excited to just lose 5000 dollars. I realize that paypal has none of my personal information or LLC information. The only thing they have is my LLC bank account. Can I just close out this account and leave the negative balance in the paypal account. What steps are the going to do to track me down? Will the bank give out that information and can it affect my credit?

And a random question: If I were to make a new paypal/ebay account and use a Gift card like this site suggests, does paypal give you a sending limit when you don't have a bank account added?

Thanks for the help

Close that bank account or the will take the money out. Do it now.

They currently just have my paypal account in a negative balance. They have made no efforts to withdrawal the money, but do they do that at some point? If the account is closed and they try to recover the money will the bank give out personal information or is that kept private?

The reason this is bothering me so much is I know this buyer is just lying. I have 300+ positive feedbacks on my account (100%) and have NEVER had any issues having the USPS delivery something wrong. On top of that he has completely ignored all my emails and attempts at communication. It's very frustrating.

First try to contact the buyer, Tell them that you do not lay down for paypal. You are giving them a time period to contact paypal or refund your the money personally or you are going to their local police station and pressing fraud charges. You will also take it up with smalls claims. So they can send the item back or pay for it. Make sure you make the letter sound professional. And if they don't respond contact their local police station. The Police will go over there and maybe scare them enough to give in.
Paypal may giving you a short time of "good faith" to clear your negative balance but sooner or later they will go into your account and take that money.

Interesting. So if I close out that bank account any idea what kind of measures they'd actually take?

But why send something worth $5000 without delivery confirmation?

with no bank account you can only send $1000
Please post your flag

From what I've seen, just a bunch of emails saying you owe this amount and to pay it to lift your account. They'll try to charge your bank account to get the funds, that's why we recommend closing it.

And they'll try collections, but that's about it.

Collections goes after your name, address, and phone number.

Read above, I used delivery conformation. The buyer claimed he never received it and paypal awarded it in his favor stating that the buyer has to confirm delivery if it is worth over 250 dollars. They said I should have sent it with signature conformation, that this would have made a difference (I don't know why). I faxed both the receipt and delivery conformation slip into them and still not luck. I talked to them several times on the phone.

So does anyone know if the Collection service would be able to gain access to my information through the bank account. Like I said, I have NO real information on my paypal account. (Address, name, and son on)

From what I've seen, no.

But close your bank account anyway.

Was his address confirmed? If so and you got signature confirmation you should have seller protection.

I was in the same shoes as you except i had real info and the negative balance stayed on paypal until i paid it. Once the funds clear in that 4 day window paypal will not take the money back, but instead leave you with a negative balance and try collections.

In my case my credit did get hurt.

Aspkin, are you sure collection cant hurt his credit just because his info is off? B/c, paypal has his bank acct.

I asked collections if they knew my social and they did and read it off to me so after a while i was stuck with a negative balance and hurt credit, so i paid the balance and i sued the person in a civil court (as the smal claims in the defendats state is only 2,500 max) The police in his area didnt help, but i did get them to serve him my court case against him.

My lawyer was 1,500 and my loss of 4,00 so total was 5,500.

This week i got a judgment against him and won for 4,300, and now im going to try to collect.

Points for you:

- paypal (at least in my case) never automatically took back the money from my bank

- negative balance owed did hurt my credit after not paying for about 5-6 months (they did all my real info)

- another scenerio i met all seller portection requirments against a claim, but they said i was not eligable. I fought for 3 weeks to get eiligable and finally got it.

Project,
Listen to aspkin. CLOSE the BANK ACCOUNT NOW. Cut out the chance of paypal
getting to your money. Be proactive, NOW.

Yea thats what i meant signature confirmation. They are very adamant about that when it comes to disputes with large accounts, it says so in their policies. Def. close the account.

Yes, it was a confirmed address.
I'll go ahead and close the account tomorrow. But I am still concerned about my credit. Does nobody have a definite answer that banks will not give out your personal information? Not to mention it is a business bank account which is registered under my LLC. The LLC was opened by myself and two other people, so how would they know who to go after?
I was not aware of the signature conformation. I have had disputes in the past that I won with just the delivery conformation. I plan on using signature conformation from now on though for high priced items. What difference does that make though anyways besides the fact that a person scribbled some characters down as a name?

i didnt know about needing signature confirmation above $250. good tip to know. thanx

Yea, I was unaware of that until they told me. I've probably purchased over 20 things on ebay that were above 250 dollars and they always had delivery conformation. Not a single one of them has signature conformation. I don't see what stops people from just always claiming they never received an item.

The signature confirmation is what can stop ppl from claiming they never received the item hence the reason its required for more valuable items. I only learnt this about a year and a half ago when i tried to get the limitation removed on my account and they told me it didnt show signature confirmation and they were going to keep my account limited until the buyer left positive feedback and this was pre 21 holds. I ended up talking my way out of it.

But really, what's the difference between a package getting delivered and scanned and a package getting delivered and signed for...

Bottom Line:

Get the money out the Bank Acct.

Close the Bank Acct

If you want you can take legal matters against the buyer..In most cases like this the police tell(or threaten rather) the accused to pay up or get arrested..From my experince that has always been enough to get a scammer to come clean.

To the other guy:How did they get your SS# just from your bank acct..?Your bank isnt supposed to give out that info..and a Simple Name and address isnt enough for them to damage your credit..You can get that easily removed.

james
He never said the SSN no. was supplied from the bank. The statement was 'I asked collections did they have my SSN number and they read it to me.'
I have worked in collections for a VERY VERY large Credit card company. We could AND did obtain information about the client.

ya, the collections place got my ssn by either my bank or all my real info on paypal, but either way they got it and my credit was hurt from the negative balance.

How can I get that easily removed? please explain.

I personally would sue him. Like i mentioned earlier, i won my court case and now he will have to pay me 4,300 or have bad credit for 10 years and can buy any property or get loans.

Consider it an extra layer of protection. When an item is delivered to me, say via Canada post and it doesnt have sig confirmation, i dont necessarily need ID to pick it up. If it has signature requirement they make sure the person picking up is the persons name on the package. Then how, can you say you didnt receive it if you signed for it. If you are selling something worth $5000 the buyer can claim he didnt pick up the item or it wasnt him knowing paypal rules that you should have a signature confirmation. I usually charge buyers the $1.5 for signature confirmation separately by stating in the listing that all orders over $250 will require an additional $1.5 charge for sig confirmation or I add it to the shipping. If its Paypals policy then its in mine.

I wasn't aware USPS signature conformation required someone presenting ID. Like I said, no one has ever sent me anything that way. Is that the case?
I'm off to close out my bank account. Would still like to hear from people their thoughts on whether this will reach my credit or not.

PayPal doesnt even ATTEMPT to fight chargebacks..I had a buyer file an unauthorized claim saying they didnt order the item.I sent paypal e-mail correspondance,the signature of the buyer(they signed when they picked it up, and they also have to write their address).


I still lost the claim.Long story short, the same guy had bought the same item from 13 differnt sellers.I told them all to file polcie reports(most did) and about a month later I got an email from from the police dept of this guys town, telling me to specify what I was owed.

Not sure if its been too long but the is a thread on this forum about this..Basically you send them a debt validation letter. They have to prove what it is for and exactly how much you allegedly owe them.

Once that bank account is closed, the bank is not at liberty to give anyone your information including ebay/paypal. You are no longer a customer. If a bank gave some-ones personal info after the account was closed, then I would take it up with that bank.

You also have to remember that, if something is on your credit report, doesn't mean it is permanent. You can challenge anything on your credit report. And have it removed. I have had several things removed from my credit report and any online business is the easiest to have removed with all identity scamming.

Well, it's closed now, so we'll see what happens.

Any tips on finding what marks you have on your credit report? Than what steps you take to challenge it and get removed?

Date
Your Name
Your Address, City, State, Zip Code

Complaint Department
Name of Company
Address
City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute the following information in my file. I have circled the items I dispute on the attached copy of the report I received.

This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be removed (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records and court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,
Your name

Enclosures: (List what you are enclosing.)


After you send this letter paypal or collections will have to prove that the account or money owed was yours. Was the paypal account in your real name? If it wasn't in your real name then they don't stand a chance and would be dumb to even report it on your credit.

Thanks, that's quite helpful. What's the best choice for acquiring a copy of your credit report?

You can obtain a free copy of your credit report here FreeCreditReport.com | Free Credit Report and Credit Score Online by Experian
Experian is an international company. BUT BUT make sure that the report is up to date.
Maybe even contact the Consumer Affairs of your state to see what company they might
recommend. When you get the report, go through it carefully and check what is written. Mistakes are made

I've gotta open a new bank account. Any recommendations that are none to work well with Ebay/Paypal (and securing you identity?)? Perferably one that you could sign up with online, but it doesn't matter.

Signed for, the UPS guy asks name during the sign process. So your telling him your name and signing at the same time.

Holds up pretty well in court.

Not really.

I once had a package delivered(the online tracking had my name and said I signed for it).Which i didn't because I wasn't even there! The driver just left the package behind the bushes and called it a day

Yea, I've had so many various things take place with USPS. Sometimes they'll leave it at the door, and sometimes they won't. Regardless of if it even has conformation on it. Like I said, I've never received signature conformation. Does signature conformation log the exact address, unlike delivery conformation that only does the city and zip?

I always ship my items that is over $250 with fedex/UPS with signature confirmation. Fedex/UPS do have better technology and more professional when it comes to delivering packages. Also it is alot easier to file a claim with them in case of a loss.

With USPS on the other hand, you mostly have to eat the losses when something like this happens even you have a signature conf. One thing I find funny was that while I was in line at the Post Office and clerk was explaining to a person that priority mail take 3-7 days to deliver but it is not "guaranteed" to arrive within that period.... so basically the clerk was saying if the package gets there then it gets there.