Help with PayPal Claim

Lchanges on 12/02/2013 - 02:53

Hi Guys,

Can someone please help me here.
I paid a $500 deposit for a website to be built by paypal and the designer completely disappeared.
He just wont answer any of my emails etc.

I contacted paypal and this is there response.
"Unfortunately, we are refusing your claim because your purchase was for a
virtual, digital or intangible item, which is not covered under PayPal
Buyer Protection. We only cover claims involving physical items that can be
shipped and tracked."

Can I claim directly with my credit card company?This guy clearly knew what paypal would say as it was not for a physical product. Been completely ripped off.

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Comments

  • Geewhizz on 12/02/2013 - 07:03

    Yes, do a chargeback via your credit card company.

    Given the circumstances, that's pretty bad form on paypal's part. Yes, it IS their policy, but it's not a digital item that you've paid for, so much as a service - which clearly has not been provided. I think you're right though - he's simply milking a loophole in the system.

  • mskeggs on 12/02/2013 - 07:23

    To do a chargeback with your card you just have to show the item/service you pad for was not supplied. I've done it a couple of times over the years, and it is pretty painless, but will take a week or so.

  • rack on 12/02/2013 - 10:17

    Call and talk to paypal. Let them know you are doing a CC chargeback and they will ty and avoid it by refunding your money. They'll tell you that this is a one off. They don't like chargebacks. When you paid this guy via paypal, what option did you use? Goods , Service or Gift? If service then tell them that services can't be physical.

    • changes on 12/02/2013 - 10:22
      +1

      I did not have a paypal account at the time. He sent me a paypal link with a link to pay.It said deposit for webwork. I have phoned paypal twice and they have said I am not covered for non physical goods.
      Paypal really did not care.

      I am just going to ph my bank today when I get a chance and try and do a chargeback.

  • strangeloops66 on 12/02/2013 - 12:06
    +1

    Name and shame. Maybe someone on Ozbargain has dealt with this scum before and knows how to get hold of him. Maybe it will prevent someone else getting ripped off.

  • mrhorseham on 12/02/2013 - 15:07

    Where did you find the guy? Where was it advertised?

  • changes on 12/02/2013 - 20:05

    I have all his details including telephone number. I have sent him one last email telling him to refund my money or I will expose him on the forums.

    I found him on freelancer orginally and he did some small banners and logo with no problem as money was in enscrow and only $90. Then we started talking about doing full website and I paid him directly.
    My fault but thought he was ok as he did other work quickly and replied to emails quickly. But the moment he got my money, never heard from him again.

  • changes on 12/02/2013 - 20:05

    He is based in USA btw

    • strangeloops66 on 12/02/2013 - 22:19

      If he's on the East Coast, they have been having some pretty bad weather there, many people without power: maybe an innocent explanation for his lack of communication.

      • changes on 12/02/2013 - 22:26

        He is florida. He is around as he has been updating his facebook page etc.
        Also got a friend to invite him to bid on a pretend project on freelancer and he responded with a bid within 2 hrs. He is just using the paypal loophole to run with the money.

  • erroorfree on 12/02/2013 - 23:44

    what an @$$ hole . sorry to hear that mate

  • EnALup on 13/02/2013 - 15:59

    Damm. I never knew that.
    Why would we use Paypal, if they don't protect the payment. I have been buying digital stuff using paypal, thinking I am covered.

    Is it possible for you to warn about that user on freelancer website as well?

  • Roary on 13/02/2013 - 19:13

    How about some details about this scum. Links to website where he puts his tenders in and facebook page. Time for the Ozbargains users to have some fun with him.
    Seems more than obvious he has done a runner.

  • starzie on 13/02/2013 - 19:26

    All you need to do is bypass Paypal altogether and contact your credit card company. Tell them that you wish to lodge a dispute immediately and they will investigate. It may take a while for them to churn through their protocols but they will eventually refund you your money. Thats why we pay 20% interest and cc fees! Good luck.

  • Jojo-Ma on 13/02/2013 - 20:49

    Coincidentally, I was spending the entire morning reading stuff regarding Paypal and their woefully inept service to customer, Google "Mcmillan, Elliot Stocks, and the new Paypal president David Marcus" there they talk about how digital stuff are hard to monitor on the seller and buyer sides.

    http://elliotjaystocks.com/blog/good-riddance-paypal/

    Only if you're lucky to be able to escalate your case directly to Mr. President and have his personal contact number.

    http://thenextweb.com/insider/2012/09/09/this-letter-paypals…

  • wiz187 on 13/02/2013 - 22:31

    Found out myself today that a " digital item " is not covered. My dispute was also rejected, though after a phone call and a request to speak with a supervisor I had that decision reversed. Was told it was a one off goodwill gesture. Via sellers Twitter and FB I was able 2 establish that there were others in the same position as me, and others had also been rejected by PayPal. PayPal was quite cryptic in answering my questions, but I was able to establish that the account was currently in suspension or locked due to multiple disputes. My story may not be of much help, but if you can find out if PayPal has a lock on the account ( maybe try a 2c transaction ) and if so, they have acknowledged the seller is fraudulent and ask them how is it fair that some people are protected and others not. I said I felt discriminated against and questioned the systems they use to qualify account holders. Got something right, money back in my account instantly. Good luck, though credit card option may be easier.

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