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PayPal chargeback; I am now in collections

Hi there, my question/problem with paypal goes back to November 19th 2012, quick background story, I run a small company that makes custom automotive parts, and we’ve been using PayPal since 2009 and pay our monthly fee’s along with credit card charges of 3.5% per transaction.

On November 15th, 2012 we had a customer that would like to purchase products in the sum of $4800 from Singapore, we processed the amount on the credit card he provided and the products were shipped out on the 19th of same month, the customer had contacted us that he had received the products and was happy with them.

On February 5th, 2013, we received email from PayPal claim that there were chargebacks from that transaction, with customer claimed it was not an authorized purchase, we submitted all the proofs along with history of conversation in emails, tracking number from TNT air shipping showing customers had received the goods and signed for it, along with the waybill invoice. PayPal had credited us the difference on good faith but on March 1st they had sent a noticed said case is closed with the decision favorite the buyer.

We tried to have a resolution with PayPal but they insist on we have to pay the money so we closed our bank account that was associate with the paypal account, and for past week or so NCO Collection agency has been calling me in person in regards of the outstanding, PayPal has informed that I, am personally responsible for the account as I was the one who opened the account, but they have told me the debt was not sold by NCO collection but merely collect it on PayPal’s behalf since I’m in Canada and there’s no PayPal collection office in Canada.

What is my next step? how can I be held personally responsible when the company was registered as an incorporation and why did PayPal think it was a good idea to reverse the fund to the credit card company? do I take them to small claim court? what would be the right solution here?

Posted: March 27, 2013 at 4:16 pm

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