PayPal refunds a buyer on titled property after he buys a boat on eBay from a lady, he then uses it all summer long and files an illegal chargeback with his credit card company citing that the boat was a lemon and services were not rendered. eBay originally decided in favor of the seller but then PayPal stepped in and decided in favor of the buyer, issued the refund and then demanded the $8500 back from the seller (not surprisingly, she had already spent it). The credit card company gave the buyer back his money, then PayPal sends the seller a collection notice for the full amount plus eBay and PayPal fees Local 8 on Your Side reports.
The seller planned on using the money to start her own business and now she is in a financial mess due to PayPal’s loophole and user agreement. The boat is considered titled property so a chargeback in this case would be considered major fraud. A chargeback can be filled weeks, or even months, after a purchase in some cases. On the contrary to what the reporter says, PayPal is NOT a secure and safe way to shop.
I’ve been telling people this for years! never sell valuable titled property on eBay unless you don’t care if you lose it or the money! says eBayisajoke
This is one reason why titled property shouldn’t be allowed to be sold on eBay. Banks cannot give credit card refunds to people selling titled property. The reason why PayPal has to give the money back to the buyer is because they are a payment service using Bank Corp’s debit/merchant services and have to conform to their bank rules as a “Payment Service” and not as a Bank. Bank Corp will not allow PayPal to act as a bank however in this case PayPal was happy to steal eight thousand dollars from an honest seller.