How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 111643
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
10285032
Type Your Business Law Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

I'm having a very big problem with PayPal and I'm

Customer Question

I'm having a very big problem with PayPal and I'm considering taking it to court.Please read the entire question before answering or I will not give credit.What happened:I first created my PayPal account several years ago, around 2011 or 2012. I was also an ebay seller taking paymentsthrough Paypal and had a very good feedback history from buyers throughout that time. In 2013, after several months of not using my account, my account was hacked and someone ran up about $11,500 in some kind of scheme taking money from other people's accounts using my own account as the endpoint to get the funds. I link this happening to my car being broken into, which I filed a police report for. They smashed the windows and documents with a lot of personal information, including my PayPal card itself were stolen. A police report was filed, but it does not reference the specific papers that were stolen, obviously. The value stolen is declared $0, which is true. It was papers and a debit card linked to an account with no funds. It seems like a very sophisticated identity thief carried this out because they were able to get money from several other Paypal accounts and were able to pass PayPal's verification process when they account got limited. This is precisely why they won't give me my money because they accuse me of actually performing the entire thing myself, running up transactions of thousands of dollars a piece while I was a positive seller on ebay selling items that never exceeded $200. They think that because they passed PayPal's own verification that I should be liable for the negative balance.I've read many articles and message boards online describing similar situations where PayPal did not honor their seller/buyer protection policies. In one case I read about, a guy was responsible for $25,000 after his account was hacked.What I've tried:I talked to PayPal customer service yesterday for over an hour before being put on hold endlessly (I waited 45 minutes before hanging up) and it seems like the same narrative playing out again from years ago when this first happened to me. I submitted an appeal and was denied the first time by PayPal based on the aforementioned events. Years later, I'm trying to clean up my financial life, including other legitimate debts and this. They feel like they have a few circumstantial pieces of evidence that makes it only possible, yet still very improbable, that I carried out the running up of a $11,000 balance systematically with other people's accounts. They won't confirm to me that the IP addresses are different between my logins and the hacker, but obviously this is a key piece of evidence that is on my side. Also, they won't tell me that the voice is different than my own with the person calling in to Paypal from a different phone number pretending to me. It seems like all the pieces of evidence that stack up against them, they won't reveal.Question:What are my legal options, what are my realistic chances of winning, and how much will it cost. The goal is to take legal action against them to rid myself of this debt and be able to use Paypal again to sell on ebay. Or could threatening them with a specific type of legal action coerce them to remove this debt?
Submitted: 4 months ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 4 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If this happened in 2013, it is too late to file an appeal with Paypal now, as the appeal has to be filed with them within 90 days I believe it says in their terms of service. However, you could sue them for breach of contract, but they are located in CA, so you would need to get an attorney in CA and the statute of limitations to sue for breach of contract in CA is 4 years, so YOU NEED TO HURRY to get a consumer protection law attorney in CA to file suit against them for not honoring the consumer protection policy, which was their contract with you.
Customer: replied 4 months ago.
I asked multiple questions that went unanswered:"What are my legal options, what are my realistic chances of winning, and how much will it cost?""Could threatening them with a specific type of legal action coerce them to remove this debt?"
Expert:  Law Educator, Esq. replied 4 months ago.
Thank you for your reply.
If you can prove you notified them within the proper time frame and provided them proof of fraud, your chances are decent of winning. As far as the cost, because of the distance and amount of damages, you would need a local attorney in CA to file suit and that could cost you $3000 or so.
This is a breach of contract claim you are making and threatening Paypal from what we have found does not really scare them I am afraid.

Related Business Law Questions