Akinika chasing me up for Paypal negative fraud balance

[fallyferres]

Hie All

Last month I sold a Galaxy S7 Edge for £500 on ebay. I insisted on collect in person but foolishly agreed to be paid cash upon collection. I met the buyer in the high street I was given the money and I gave them the phone. I immediately withdrew the money from my paypal to my bank account. 2 days later I received an email from paypal that the buyer is disputing the transaction on the grounds of fraudulent log in of their paypal account. Needless to say paypal took the side of the buyer and refunded the buyer the money whilst debiting my paypal account leaving it in negative to the tune of £490. Paypal has now passed on the debt to Akinika who sent me a text message yesterday asking me to make contact regarding the matter.

The question is how do I proceed from here?. Do I contact the financial ombudsman?. Do I even make contact with Akinika? Later on today I will reporting the matter to Action Fraud. Could someone kindly point me out to some template letters I can use to contact paypal escalations about the matter because I feel hard done by as I have lost both the phone and now paypal wants me to fork out £490 which I simply don't have.

Ok, I made a mistake accepting paypal payment for collect in person transaction but paypal should simply ban this type of payment for collect in person transactions as they give fraudsters an opportunity to scam.

The thing I simply don't even have £490 to restore the paypal balance and I am prepared to go to court to explain to a judge the circumstances of the debt.

I would appreciate help of what steps I can take to hopefully get paypal to write off the amount as a gesture of goodwill.

[R0b]

Re: Akinika chasing me up for Paypal negative fraud balance

Hi [MENTION=100675]fallyferres[/MENTION]

Based on what you have said, I can't see how PayPal could have a claim against you for the £490. If you honestly sold the phone through eBay and that the account has been used fraudulently then unless PayPal are alleging that you were involved in some way (which they would require a high degree of proof than a mere statement) then it has nothing to do with you. Just because the payment was made to you through Paypal does not mean they can be indemnified by payee because someone alleges fraudulent activity - even if Paypal had some term or condition to that effect I can't see how it could be considered a reasonable term by a court.

Have you checked your credit file to see if any adverse entries have been applied, particularly under the CIFAS section?

Perhaps you could contact Akinika and explain you will only correspond in writing and get an email or correspondence address from them too and their reference number if you don't have it. Once you have that information perhaps a letter to them explaining that you are not liable for the £490 and that you advertised a phone for sale which you exchanged following payment through PayPal. Provide them with the eBay listing and maybe any additional information you have on the buyer e.g. their eBay account name which should be sufficient to shut the matter down.

I would also be inclined to send it to PayPal (and explain this in the letter to Akinika) too so they are also on notice about this, just in case Akinika fail to pass over that information.

I don't think there is any need for you to contact Action Fraud, that should be the person who is claiming their account was fraudulently accessed.

If you want to pay any amount then that's your prerogative, but always bear in mind that it is PayPal that has to prove their case, not you.

[fallyferres]

Re: Akinika chasing me up for Paypal negative fraud balance

Thank you for taking the time to reply. I advertised the phone on ebay. Met up with a guy who insisted on using paypal. He transffered the money and i handed him the phone. All in good faith on my part only to receive a message 2 days later that the so called buyer is disputing the transaction.

Councidentally Akinika sent me a letter concerning the debt. I will reply the letter stating my side of the story and refusing liability.

I can't afford to pay the £490 back. Even if i could afford to pay it back it just doesn't sound right when i am the victim of fraud but to be asked to make good of that amount of money is pushing it too far by paypal.

Hi [MENTION=100675]fallyferres[/MENTION]

Based on what you have said, I can't see how PayPal could have a claim against you for the £490. If you honestly sold the phone through eBay and that the account has been used fraudulently then unless PayPal are alleging that you were involved in some way (which they would require a high degree of proof than a mere statement) then it has nothing to do with you. Just because the payment was made to you through Paypal does not mean they can be indemnified by payee because someone alleges fraudulent activity - even if Paypal had some term or condition to that effect I can't see how it could be considered a reasonable term by a court.

Have you checked your credit file to see if any adverse entries have been applied, particularly under the CIFAS section?

Perhaps you could contact Akinika and explain you will only correspond in writing and get an email or correspondence address from them too and their reference number if you don't have it. Once you have that information perhaps a letter to them explaining that you are not liable for the £490 and that you advertised a phone for sale which you exchanged following payment through PayPal. Provide them with the eBay listing and maybe any additional information you have on the buyer e.g. their eBay account name which should be sufficient to shut the matter down.

I would also be inclined to send it to PayPal (and explain this in the letter to Akinika) too so they are also on notice about this, just in case Akinika fail to pass over that information.

I don't think there is any need for you to contact Action Fraud, that should be the person who is claiming their account was fraudulently accessed.

If you want to pay any amount then that's your prerogative, but always bear in mind that it is PayPal that has to prove their case, not you.

[R0b]

Re: Akinika chasing me up for Paypal negative fraud balance

It may be helpful to post up the letter, redact your personal info so we can see what Akinika are saying and then you can tailor your letter to that.