$4000 Paypal Negative Balance

So to keep a story short...

I designed a site for a client, had a contract, Credit card authorization and etc'.

Client paid with AMEX and i used the PP terminal to charge his card (bad choice as Terminal payments are not covered apparently).

Client mad e a dispute with Amex and after 45 days or so PP caved and gave the money back to Amex even though i already deposited it in my account.

So now my balance is about $4000 negative and PP are calling on a daily basis trying to collect though i avoid their calls.

Should i pay PP or just forget about them? What can be the consequences? Anyone has experienced anything like this before?

 

I can say that you're in a bit problem, you should mention where are you from 1st - because all depends on your residency country. If you're USA or Europe then you're in even bigger problems. What I strongly suggest is to talk with a lawyer because 4.000 USD is not a small amount and PayPal can anytime address to a local court for starting the commercial charges against you. So give more information, anyway - I've said so many times PayPal is not the BEST payment processor for these kind of things, especially, when you can't control the result of your work.

 

Yep... US!

 

if you had a contract with the client, can you not sue them for breach of contract, and force them to pay the $4000, on top of any other admin fees that were incurred by it?

 

We are in FL, They are in GA

We can start a lawsuit but that will mean time and lost of money until we see a resolution - I am not sure i can afford the Lawyer's fees until the case is resolved - And if it does you never know when you will get the money if at all.

Was sent to collections and they dropped it saying the customer just said "Sew me!"

 

well, i think you still need legal advise then before you do anything. To me, it sounds like the guy has committed fraud and should be locked up.

 

if you designed the site , if you still have server access take it down or message me i can help you with this if you want ,

#2 NEVER USE PAYPAL VIRTUAL TERMAIL OR HAVE HIM PAY A INVOICE
you were actually better off using Square to handle the payments in this situation ( im guessing you do this part time and dont have that much business )

#3 if you do this from now on and accept clients on a regualar basis , i do suggest set up a payment gateway and only accept visa and mastercard and use Verifed by visa and Mastercard secure code from now on to avoid things like this in the future ...

if you wanna discuss your options you can shoot me a email to
i'll help you to the best of my abilities

 

Hi, Bad to hear about your business with this guy.

I reccomend you to talk with a legal advisor about this issue because I think PayPal can start legal matters if you live in the USA or Europe.

Take care,
ProMoney28

 

Thanks for your note but i am actually looking for someone that experienced this before to see how it got resolved

 

They will report it to the cops so you may get in legal trouble so I suggest you to payback or you will be behind the bars. Wishing you good luck so you get everything solved

Regards

 

Here's how to fix this in a nutshell:

1. Information - Contact Paypal - ask to speak to someone in a supervisory role regarding this matter, keep that person's name/ extension and discuss how you can get all documents regarding the matter sent over to Paypal. You may want to get this person's paypal email address and ask if they can spearhead handling the matter since you don't want to deal with 50 people in your account with no real knowledge of what's going on.

2. Client - Send a letter to the client outlining the base of your conversations regarding the service they requested, the service you provided, the dates of submission and the fact that you want to resolve this matter expediently. ( In this case - if you provided a service, the client is using the site, it was delivered, you have emails stating they loved it and were issuing the payment, that is generally a clear indication that the payment was the close of the transactions, therefore making it the client's fault for not living up to their end.) Advise the client they have a specific date to contact to you to resolve this or you will take action.

3. Host - If you built the site, then you know who the host is. Create a generic letter indicating that the design and content is being used without compliance ( You designed it, they didn't pay for it, so it's still yours). Send this directly to the Host indicating upon receipt of payment you will notify them. Most hosts will take down the site or put pressure on the client to resolve this because they don't want to be sued for hosting graphics or a site that isn't paid for.

4. Diligence - Upon giving the client a date to contact you to resolve the issue ( and I mean record everything between yourself and the client), provide ALL correspondences to the representative you are speaking with on Paypal. Contact a legal service ( if you need a referral then I can give you one), and notify them of everything that is going on so they can mail the client a letter to cease use of the site and remit payment or legal action will be taken. This will be sent on their letterhead and you can include all legal fees when you discuss this with them.

5. Notify Paypal - When they realize that you are going after this person for breech of agreement ( not contract because now you learned your lesson about not having a contract), they will back you in pursuit of the funds. AMEX will more than likely try to make things right on their own by cooperating with a statement indicating the date the client tried to remit the payment and this will work in your favor.

6. At the end of the day - Sue for any funds your may have lost due to loss of business because your Paypal has been placed in the negative.

Time this process may take - 1 - 3 weeks.

Suggested Action plan:

Call Paypal for rep info - 12/12/2013

Send email to Client - 12/12/2013

Client Deadline to Resolve - 12/22/2013

Contact Legal Representative - 12/15/2013

File Charges if Necessary - 12/23/2013

I'm always here if you need more help.

 

Unless you work for paypal to get his account of out of the negative or your a lawyer.... you can't help him. Don't try to scam someone please. You have one message when you put this up here and even your name oozes scammer. The person posting this wanted real advice to resolve this in a legal way not some " pay me money and I'll send illegal funds to your account getting you in more trouble " help.

 

recently 2000$ chargeback on paypal.. don't know in india will they gonna sue me ???

 

Have you provided the identification information to paypal?

Is your social security number or bank account directly linked?

The ability to prosecute in certain countries vary when it comes to Paypal.

 

bank ac removed,here in india no social security no ...

 

Paypal can only do one thing.

Sell your negative balance to debt collector company.

I had 1 paypal account with negative $15... I had 4 paypal accounts... I did not even know I had the one with negative balance. Now I get harassment calls for $15 (LOL)...

nevertheless, I ignored that call and ignored that 4th paypal account... I am now only focusing on 1 paypal account.

Of course that debt collection will affect my CREDIT Score.. but heck my credit score is already so bad... that I do not even care about it anymore... LOL...

Just focus on making money... and use that money to buy new stuffs... AND NEVER DEPEND on CREDIT CARDS...

 

It wont matter that you removed your bank information they can still come after you. Have you taken the steps I've suggested?

If you need more help then send me a private message.

 

Thanks for your note but i am actually looking for someone that experienced this before to see how it got resolved

 

No problem but I wrote that note like 2 weeks ago, this is your 2nd thread about the same problem and anyone with experience with this problem would never wait this long to resolve it.