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Hi All,
I sold some Bitcoins on PayPal. I received the money and transferred over the BitCoins.
A few hours later PayPal reversed the charge because (they state) the transaction wasn't authorised by the account holder. The BitCoins were irretrievable. I was the victim of a fraud similar to this one
http://www.theguardian.com/money/201...coin-scam-ebay
I reported it to the police and obtained a crime reference number.
After much hassle from PayPal eventually I told them to take any money legally owed to them from my credit card because they were threatening to defame my credit rating.
I've appealed to the Luxembourgian regulator (who didn't reply). I'm now suing them in small claims court on the following grounds: -
Under their contract "the seller is responsible for all... chargebacks on the account"
1) The chargeback constitutes transfer of the proceeds of a crime under section 327 Proceeds of Crime Act 2002 and so the contract is void / must be construed to exclude illegal chargebacks.
2) There is an implied term in the contract not to use the charge-back mechanism capriciously, which, given the apparently endemic number of victims of this type of fraud, they do not appear to be doing.
3) I suffered harassment including two phone calls to my place of work, two other phone calls, tens of emails, a debt collection agency letter threatening a home visit, and threats to my credit rating, all during the period my case was under review from their chief executive's offices. The greater large part of my claim relates to damages in relation to this as per Ferguson versus British Gas.
4) They've written a defense pointing out I had sued PayPal SARL, not PayPal (Europe) SARL et Cie, SCA.
For each of the above I would be very grateful for an independent assessment of my legal position before I proceed any further.
Thanks,
Shaya
I sold some Bitcoins on PayPal. I received the money and transferred over the BitCoins.
A few hours later PayPal reversed the charge because (they state) the transaction wasn't authorised by the account holder. The BitCoins were irretrievable. I was the victim of a fraud similar to this one
http://www.theguardian.com/money/201...coin-scam-ebay
I reported it to the police and obtained a crime reference number.
After much hassle from PayPal eventually I told them to take any money legally owed to them from my credit card because they were threatening to defame my credit rating.
I've appealed to the Luxembourgian regulator (who didn't reply). I'm now suing them in small claims court on the following grounds: -
Under their contract "the seller is responsible for all... chargebacks on the account"
1) The chargeback constitutes transfer of the proceeds of a crime under section 327 Proceeds of Crime Act 2002 and so the contract is void / must be construed to exclude illegal chargebacks.
2) There is an implied term in the contract not to use the charge-back mechanism capriciously, which, given the apparently endemic number of victims of this type of fraud, they do not appear to be doing.
3) I suffered harassment including two phone calls to my place of work, two other phone calls, tens of emails, a debt collection agency letter threatening a home visit, and threats to my credit rating, all during the period my case was under review from their chief executive's offices. The greater large part of my claim relates to damages in relation to this as per Ferguson versus British Gas.
4) They've written a defense pointing out I had sued PayPal SARL, not PayPal (Europe) SARL et Cie, SCA.
For each of the above I would be very grateful for an independent assessment of my legal position before I proceed any further.
Thanks,
Shaya
