Troubles with a Business Account

Project19888 · #1 02-09-2009

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

siashay · #2 02-09-2009

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

Project19888 · #3 02-09-2009

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.

siashay · #4 02-09-2009

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.

Project19888 · #5 02-09-2009

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

divine422 · #6 02-09-2009

But why send something worth $5000 without delivery confirmation?

Snagga · #7 02-09-2009

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

**aspkin** · #8 02-09-2009

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.

Project19888 · #9 02-09-2009

Quote:

Originally Posted by divine422

But why send something worth $5000 without delivery confirmation?

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.

Quote:

Originally Posted by aspkin

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.

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)

**aspkin** · #10 02-09-2009

From what I've seen, no.

But close your bank account anyway.

rjebay · #11 02-09-2009

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.

GreenBean · #12 02-09-2009

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

divine422 · #13 02-09-2009

Quote:

Originally Posted by Project19888

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.

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.

Project19888 · #14 02-09-2009

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?

Snagga · #15 02-09-2009

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

Project19888 · #16 02-09-2009

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.

divine422 · #17 02-09-2009

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.

Project19888 · #18 02-09-2009

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

JamesYaBaoy · #19 02-09-2009

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.

GreenBean · #20 02-09-2009

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.

rjebay · #21 02-09-2009

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.

divine422 · #22 02-10-2009

Quote:

Originally Posted by Project19888

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

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.