Paypal said my debt was considered “exempt” but still wanted money from me.

I was commissioned by a dealer selling a motorcycle to list it on Ebay, which I did twice with my sale. However, after the close of the second listing, a buyer contacted me with regards to the motorcycle and long story short we came to an agreement and the buyer made three separate payments using his credit card. I transferred the funds from my Paypal account to my checking account and gave the dealer a check for the purchase of the motorcycle. That was first thing in the morning. Later that day when the shipper was to pick up the motorcycle, the buyer all of the sudden backs out of the deal and files a claim with Paypal, which I contacted Paypal and the claim was removed due to it involving a vehicle. The dealer signed a document that stated that they were in receipt of the payment from me for the motorcycle for the buyer and relinquished all responsibility for the transaction from me and this was notarized, along with several other documents regarding the motorcycle being placed in storage.

The buyer was sent these documents and for 41 days was working with the dealer to have the motorcycle picked up and then all of the sudden the buyer again backed out of the deal and this time placed a claim with his credit card company, which Paypal gave me the run around and gave the credit card company the money without so much as a fight. Then Paypal placed my account with a collections agency, which I sent them the documents regarding the transaction and the account was sent back to Paypal, who then placed it with yet another collections agency, whom I again gave the same documents as the first collections agency who then sent it back to Paypal, who sent it to a third collections agency, whom I contacted today and was informed that Paypal had taken back the account. So I called Paypal and was told that it was considered “exempt”, which I called back trying to find out what that meant and was told that they are not currently seeking collections at this time, however that the amount is still owed to Paypal and if I settle somehow with the parties involved that I should call Paypal to let them know and work out the payment to them.

Seriously? They sent my account to two collections agencies who saw the SAME documents that were sent to the buyer AND Paypal and they both sent the account back because they know they cannot come after me for the money, and Paypal seems to think that I am going to contact them after a resolution is met? The resolution was met nearly 8 months ago when the dealer made out the form and accepted responsibility for the transaction and removed it from me. According to the law once I gave the dealer the check it was considered a document of conveyance and I was no longer in the picture, yet Paypal sided with both the buyer and credit card company without so much as considering any of the circumstances or documents that exist, including the check or the document made out by the dealer.

Paypal is about as shady as they come, and the last person I spoke with by the name of Mike, if that is even his name in the first place, was about as rude as they come and didn’t want to get into discussing why they continue to come after me and giving me a hard time when I have tried and tried to be as cooperative as anyone could ever be. Well, I am no longer going to be nice and cooperative. They can kiss my rear end and I have all my ducks in a row to bury them if they try to keep coming after me.

Posted: August 12, 2013 at 7:27 pm


2 Responses to Paypal said my debt was considered “exempt” but still wanted money from me.

  1. POLO says:


  2. NEVER accept Paypal or credit card as payment for titled property. Credit card companies will side with their customers 99% of the time no matter the circumstances. It is impossible to dispute ownership of titled property once title has been transferred and recorded. You have no recourse options with Paypal and you legally owe them the money. All you can really do in seeking restitution is sue the buyer for fraud.

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