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Still paying for false chargeback back in 2005

Back in 2005, I had used Pay Pal to complete a transaction for a client. I provided the services and the client days later called Paypal and requested his money back. Without question or notification Paypal refunded the money, leaving my account and my bank account in the red. I was notified about this after the fact. This caused a major problem for me and today I am still paying for it.
I recently tried to purchase a product online to help grow my business and received a notice that Paypal was flagging my account due to this dispute I had back in 2005. I don’t feel it was right to do what they did to me and I don’t feel I owe them money. I was never warned. I provided services for a client and Paypal allowed him to steal the money back from me. Now they are punishing me for something they should have never done in the first place. I feel I should have at least been given the opportunity to explain my side of the story before they did this.
The following is the letter they sent to me:

We see that your PayPal account registered at ***** is connected by one or more pieces of personal information to another PayPal account registered at c*********, which is currently negative -$484.30. Before we can remove the limitation from your accounts, you first need to resolve the negative balance on any associated account(s).

You may choose to complete a payment in one of the following ways:

• Call us at the phone number provided below and complete a
payment over the phone or provide authorization to transfer funds.
• Send a check or money order to the following address (please
indicate the associated email address in the memo):

PayPal Accounting
PO Box 45950
Omaha, NE 68145-0950

• If we do not receive a response from you within 14 days,
funds from your PayPal account with a positive balance will be deducted to resolve the negative balance on your associated PayPal account.

For more information on reasons why we limit access to accounts, please refer to the ‘Closing Accounts and Limiting Account Access’ section of our User Agreement.

You can contact our Customer Service at 1-866-648-5870 for further assistance.


On 4/3/2013 I tried to call them Paypal and once again speak with them about this matter. They said that there was nothing they could or would do to help me in this matter. Either I had to pay it or they may send it to a collection agency. I asked to speak to a supervisor. They said that there was no one available for me to speak to at the time. They said someone would call me back. I have not received a call back from them yet and assume I never will.

Posted: April 9, 2013 at 4:20 pm

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