Product: Credit reporting, credit repair services, or other personal consumer reports

This complaint is meant to achieve two separate goals : A. Refund to me of out of pocket losses, and B. To demonstrate that Online buyers require more protection from Paypal than what the company is offering at the present time.

This complaint is about Paypal The main problem : Paypal claims and advertises that it offers its clients security for their Online purchases. As it stands at the present time, this promise does not cover the most important part of Online purchasing, that of facilitating the return of undesired items at no additional cost to the buyer.

The company does not advertise that its assurances for the buyer actually do not cover cost of returns. The impact of this exclusion on the buyer and on the entire Online commerce can be damaging.

In my case, due to an unsound process of my claim by Paypal, I sustained monetary damages and also time loss and frustrations.

In addition to the above, Paypal does not offer a vehicle to appeal what appears to be an arbitrary decision made by the Resolution Centre. At the present time, one can appeal only to the Resolution Centre itself where the unaccepted decision was made.

Paypal does not provide for the means to contact senior management that could resolve customers ' disputes against the Resolution Centre, neither an Ombuds person who could assist clients with their grievances.

Details of the case : 1. On XX/XX/XXXX I ordered a pair of shoes Online from a seller, in XXXX, under the name of XXXX, for the cost of $ 120+ {$22.00} shipment = {$140.00}. 
2. On XX/XX/XXXX, I received an Email from the seller with shipment and tracking no. with XXXX and the expected day of delivery to be onXX/XX/XXXX. 
XXXX. Due to an error, XXXX delivered the parcel on the XXXX day of the month and later decided to refund the seller with {$22.00}, the cost of shipment. 
4. The seller credited my account with Paypal for the said refund of {$22.00}.

5. Erroneously I complained to Paypal that I expected two pairs of shoes but soon after I realized my mistake ( I mixed up two sellers ) I apologized to both the seller and Paypal.

6. Paypal closed the case on XX/XX/XXXX. 
7. A couple of days later, I tried on the shoes and found them unsuitable 8. I wrote to the seller ( XXXX ) about the unsuitability of the shoes, he apologized and offered me to return the shoes for a later refund. 
9. I called XXXX and found out that the cost of shipping the shoes back to the seller in XXXX was to be {$160.00}. 
10. I informed the seller with this cost of shipping and demanded a prepaid return label and the seller refused to send me the requested label but advised me to ship the parcel for a lesser cost. 
11. The Post Office demanded {$110.00} for shipping the said item to XXXX. 
12. On XX/XX/XXXX I telephoned Paypal and spoke with an agent who decided to reopen the closed case. 
13. On XX/XX/XXXX, I left town for two weeks and returned XX/XX/XXXX. 
14. On XX/XX/XXXX I found three emails from Paypal dated XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX, requesting tracking info as evidence that I had returned the shoes to the seller, and another on XX/XX/XXXX informing me that the case was closed. 
15. The same day, I telephoned Paypal and spoke with a lady by the name of XXXX ( XXXX ). I explained the absurdity of Paypal 's request for Tracking info. Here I am asking Paypal to assist me towards achieving a prepaid return label from the seller to avoid paying the cost of shipping the shoes back, but Paypal requests of me a proof that I had already shipped the shoes back. 

How on earth could I meet Paypal 's demand for tracking info when at the same time I was asking Paypal to enquire with the seller re. a prepaid return label? I must assume that my complaint was not properly read by Paypal. 

XXXX was a good listener and she clearly understood the issue. She also told me that probably Paypal would refund me the cost of the shoes. 
16. XX/XX/XXXX, I received an email saying that Paypal had closed the case. 
17. XX/XX/XXXX, I wrote a letter to Paypal, explaining that my case was never read and none of its content was addressed by the company in any of its emails. Therefore what the company closed was not related to my complaint. Also, had they studied my complaint, Paypal would not have a reason to request tracking info in the first place. I asked them to reopen the case or in the alternative refund me the cost of the shoes. I added that without the service of Paypal, which advertises their buyers ' protection, I would not have bought the shoes from a seller I had never known before especially not from XXXX where I have no recourse over the seller. 
18. I received an email from Paypal saying that due to the fact that I didn't answer their requests for tracking info on time, Paypal had decided for the seller and the case is closed.. 
19. I decided to appeal this unreasonable decision to a higher authority within the company, but found out that only the front tel. office is available to the public. I asked for a name, tel. no. or Email address of any of directors, VP, even the president but I could not penetrate the high wall that surrounds the executive Management. I XXXX asking how to reach Paypal management, received the entire roll of names of officers with their phone numbers, but later discovered that all those phones were either changed or cancelled. 
20. Paypal 's management hides behind closed doors. 
21. Now I possess shoes that I can not use and sustained out of pocket loss of {$120.00} all this was for the reason of lack of attention on the part of the Resolution Centre.

22. Today I called Paypal to ask them the name of the person who wrote me on behalf of the Resolution Center. The lady ( XXXX ) who spoke to me on the phone asked me several questions about my complaint and decded to reopen the case, eventhough I did not ask her to do so. XXXX also mentioned that as a policy Paypal sometimes affords the buyer with up to {$30.00} refund to offset shipping cost. 
Later I received another rejection based on the same reason of not supplying tracking info. for the return of the shoes. 
23. This complaint is addressed to CFPB as my last resort.

My case has made clear that the public who use Paypal services for Online shopping is vulnerable to losses.

I believe that the Online commerce can be effective only if the buyer 's purchase from an unseen and unknown seller is insured against losses that generated from having to spend unnecessary funds in case of returns.. Such insurance is required in cases when the buyer decides that the item he/she paid for is not in accordance with their expectations and would want to be reimbursed but the seller refuses to pay for the cost of shipping the item back No buyer would want to pay money to acquire an item with the suspicion that the item might be under " final sale '' terms. 
Paypal assists buyers to have the seller agree to accept back unwanted items, but at what cost? Based on my case, when I bought an item for {$120.00} + {$22.00} shipping, would I want to pay an extra {$160.00} to ship it back? 
What if the seller had the advanced knowledge about the cost of shipping the item back? That seller would have the opportunity of selling items of lesser quality, betting on that the probability of receiving them back is low. Paypal should protect buyers from such eventualities. 

Paypal is at fault not to warn buyers, in clear language and large letters, about that it, Paypal, is not responsible in cases when sellers refuse to pay for the cost of returns, along with an example ( like that in my case. ) Luckily, most Online merchants do provide with prepaid return labels, otherwise an Online market would not be possible. It is the bad apples from whom Paypal must protect the buyers.

Paypal could impose a condition on sellers to provide buyers with prepaid return labels. Those who would be reluctant to do so, probably, are the kind who corrupt otherwise an honest Online market. Sellers who use the services of Paypal, must be bona fide merchants. This is why buyers are prepared to buy from them.

Paypal must choose either to clearly warn the buyer that it doesn't guarantee a cost free returns, refund buyers with the cost of shipping back ( or at least promise a refund of the shipping cost for shipped back items ) or better not deal with merchants who refuse to pay for the cost of returns. 

XXXX Paypal is also missing out on a real opportunity : that is of advertising that through Paypal, all legitimate reurns will be guaranteed by Paypal at no cost to the buyer. 

It would be reasonable to expect that under these conditions ( that sellers must provide buyers with prepaid return labels ) merchants would take an extra step to ensure the correctness of the items they ship and the result is a win-win for all concerned. 


This mail from Paypal was their response to my phone call to open a dispute. 

Attachments : From : PayPal Customer Service Mark as unread Print Delete Re : Resolution for case id : XXXX XX/XX/XXXX at XXXXXXXX XXXX Dear XXXX XXXX, Thank you for contacting PayPal. 
On XX/XX/XXXX, we contacted you to return the merchandise in question to the seller and to provide us with online tracking within 10 days. We also sent email reminders on XX/XX/XXXX and XX/XX/XXXX. 

Unfortunately, this claim was closed on XX/XX/XXXX because we never received a response from you. We can not accept your appeal of this claim, as you did not provide valid tracking for the returned item within the required time frame. 
I realise that this isn't the outcome you'd have wished for, but I hope you understand why we made this decision. While I can not change this, I will make sure your objection is duly recorded. 

Thank you for your cooperation. 
It is my pleasure to assist you. Thank you for choosing PayPal. 
Sincerely, XXXX Protection Services Department PayPal -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- My reply to Paypals rejections letter of XX/XX/XXXX XXXX XXXX XXXX To : XXXX XX/XX/XXXX at XXXXXXXX XXXX   Sirs, I am truly astonished with your latest email. Nothing like this I could expect out of a respectable organization like Paypal. 
Invariably, you skipped reading my complaint and rather dealt with a side issue that is absurd per se. 

Your demand of me to supply you with tracking info for my return of the bought item is a clear indication that you either don't understand my claim, haven't read it or purposely are ignoring it. I explain again : Tracking info is a proof of having returned the item. My complaint was and is that I wouldn't return the item due to the high cost of shipping it back to the seller ( cost of shipping back is just about the cost of the item ). This is why I think that asking me for tracking info is out of the reality of this claim and this demand of yours should never have been sent to me in the first place. Moreover, I don't have a business where an employee is present at all time to answer your mail within 72 hours, the way you do with the merchants. I am an individual and may be away when you send your email and therefore I should not be penalized for a delayed response on my part. But as far as this claim is concerned, had you studied it prior to sending me your demand for tracking info, in all probability you wouldn't have done so.

Originally I discussed this issue with the Paypal 's rep and the original case was reopened, based solely on my demand for a prepaid return label, the way it is common within the Online markets. This claim, as it appears, was never examined neither given any consideration by the Resolution Center, and deciding for the seller was an arbitrary decision, not based on the subject matter.

I must add that the process of this case by Paypal can be source of embarrassment for the Center should it reach higher management of Paypal. 

I don't accept your arbitrary decision. I urge you to read all my correspondence, consult the notes of the phone reps and I hope that subsequently you agree to reconsider my claim. 
With all due respect, Sincerely From : PayPal Customer Service Re : Resolution for case id : XXXX XX/XX/XXXX at XXXXXXXX XXXX Dear XXXX XXXX, Thank you for contacting PayPal. 
I realise that this isn't the outcome you'd have wished for, but I hope you understand why we made this decision. While I can not change this, I will make sure your objection is duly recorded. 
We have now closed this case in your seller 's favor as we didn't receive return tracking information from you within the specified timeframe. We encourage you to work directly with your seller to reach an amicable resolution. 
Thank you for your patience and cooperation. 
Please let me know if you need further assistance. 
Sincerely, XXXX XXXX PayPal Paypals demand for additional info On Wednesday, XX/XX/XXXX, XXXXXXXX XXXX CDT, XXXX XXXX wrote : -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- We Need to Hear from You within 3 Days -- -- -- -- -- -- -- -- -- -- -- -- -- -- - Dear XXXX XXXX , We are currently investigating your claim : -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - Transaction Details -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - Seller 's Name : XXXX XXXX  Seller 's Email : XXXX Seller 's Transaction ID : XXXX Transaction Date : XX/XX/XXXX Transaction Amount : - {$140.00} USD Invoice ID XXXX XXXX Your Transaction ID : XXXX Case Number : XXXX Buyer 's Transaction ID : XXXX To complete our investigation, we need some additional details from you : Please respond to this email within 3 days to let us know If you received a refund or the item, or you reached some other settlement with the seller. If we dont hear from you within this timeframe, we may close this claim. 

Thank you for your patience and cooperation. 

Sincerely, PayPal My reply to Paypals asking if I had any compensation from the seller XX/XX/XXXX at XXXXXXXX XXXX XXXX XXXX XXXX To : XXXX XX/XX/XXXX at XXXX XXXX  Thank you for your e-mail. 
The only partial refund I received was actually from XXXX. They brought the shoes after eight days delay. Since I didn't engage XXXX neither did I pay them directly, XXXX sent the refund to the seller and the seller credited my account at Paypal. The seller was merely a conduit, intermediary for passing on the refund to me. 

The seller had offered me a refund for the returned shoes, and since the shoes have not been yet returned I received no compensation from the seller. 
As a subsequent to the seller 's refusal of sending me a pre-paid return label, our communications came to end. No promises given or received. 
XXXX Paypal 's final decision was posted on their Resolution Centre 's communication page. Later it was removed from the page.

Their reply was a repeat of their other decisions, excusing their rejection of my appeal to be my not repling on time to their demand for proof of return.

PAYPAL PROMISE FOR PROTECTION OFFERED TO BUYERS " Protection you can count on If you don't receive the item that you ordered, or it shows up significantly different from its description, you may qualify for Purchase Protection, and we'll reimburse you for the full purchase price plus any original shipping costs, subject to terms and limitations. If you are charged for a transaction that you didn't make, let us know within 60 days, and we've got you covered. '' Note 'original shipping cost ', no mention of shipping cost to return the unwanted item. 
Under the above promise it would be easy to assume that buyers are fully protected by Paypal. An exclusion clause written in clear-to-notice and read manner is missing. 

Note : I am consenting for CFPB to publish this description on consumerfinance.gov but should Paypal accede to the proposed changes, this consent becomes nullified. 
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