Resolving Your Paypal Nightmare
Helping you fight back
If you are reading this document then chances are Paypal has your money and won't give it back. So how do you go about getting your money back from this seemingly criminal entity that hides behind very tight terms of service and auto-responders? Play them at their own game - file a claim with their insurance company OR seek arbitration.
In all Cases...
You should immediately visit both the Better Business Bureau of Santa Clara County and the Better Business Bureau of Nebraska to file a complaint against Paypal. They have recently cleaned up their BBB record and seem to be responding to complaints. HOWEVER...please realize the difference between responding and settling complaints. The BBB only requires that Paypal respond to a complaint for it to not have a derogatory effect on their BBB record. You should still continue with the step(s) below, immediately after filling a complaint with the BBB!
Also, be sure and file a complaint with these agencies:
Filing an Insurance Claim Against Paypal
Although Paypal advertises that all accounts are protected against unauthorized activity by Travelers Insurance, you can forget about filing a claim with Travelers.
As it turns out, Travelers will not reimburse victims directly. When PayPal incurs a loss, aka they reimburse an innocent victim with their own funds, then they can submit claim to Traveler's. PayPal says they've not submitted a claim to traveler's yet because all the reimbursements they make to customers are below the deductible. Read the Wall of Shame for an example.
We had a downloadable claim form and a link to the Traveler's claim offices, but they made us remove the information. It didn't make much sense anyway, considering it would do nothing for you - you're stuck dealing with Paypal customer disservice.
Arbitration with Paypal
The ONLY other way to resolve your issue with Paypal is through Item I, #26 of their terms of service - arbitration. This is especially helpful if insurance isn't the proper way to go or if your insurance claim has been denied. Arbitration is a way of getting an impartial "judge" to hear the case without having to spend thousand of dollars in an actual court of law. The results are binding on both parties. Your case will be heard in Palo Alto, California - but you may be able to put your case in writing.
Contact the American Arbitration Association and complete a request for mediation. (focus areas->mediation->request for mediation).
Always...
Try to resolve the matter amicably prior to filing an insurance claim or engaging in arbitration...but sometimes they leave no other choice. You may want to Email Damon Billian and Ryan Yank at Paypal. They may be able to escalate your dispute before you take additional action. Also, be sure you print out every Email they send you - ALL OF IT! You agreed to do this under the Paypal terms of service. You should also notify Paypal that the Email address they have for you is no-longer valid. This will force them to send you written correspondence via the US Postal Service. You need to do this because they have no such requirement to keep a paper trail of your dispute.
Of course, remember that we are not lawyers and this should not be considered legal advise. Contact your own lawyer with any questions.
GOOD LUCK!
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