Consumer complaint received 2024-10-04
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Paypal Holdings, Inc (CA)

In XX/XX/XXXX, I initiated a dispute with PayPal after purchasing a used phone for {$390.00} on XX/XX/XXXX, via XXXX. The seller had advertised the device as being in pristine condition. However, upon inspection on XX/XX/XXXX, I discovered that the phone had over XXXX scratches on the screen, including several deep ones that were visible even when the screen was on and could be felt by touch. The condition of the phone was significantly worse than described. 

Following XXXX guidelines and staff instructions, I opened a dispute with PayPal on XX/XX/XXXX, requesting a partial refund due to the device being significantly not as described. On XX/XX/XXXX, PayPal initially closed the dispute in my favor but offered a partial refund of {$100.00} contingent upon my returning the device. This resolution was unacceptable because it would require me to return the phone while still incurring a {$280.00} loss due to the seller 's bad-faith sale of the device in such poor condition. 

Concerned by this outcome, I contacted PayPal customer service. On XX/XX/XXXX and XXXX, XXXX, I spoke with a representative named " Al '', who informed me that PayPal would re-open the case and work toward changing the resolution to a full refund of {$390.00}. During these calls, " Al '' explicitly instructed me not to return the device unless told otherwise by PayPal. On XX/XX/XXXX, " Al '' successfully re-opened the dispute for the full amount, and it was confirmed that the seller would have 10 days ( until XX/XX/XXXX ) to respond. " Al '' reiterated that I should not return the phone unless instructed by PayPal. 

On XX/XX/XXXX, I received an email from PayPal that not only contradicted their previous instructions but also threatened to charge me an additional {$390.00} on top of the original payment if I did not return the device by XX/XX/XXXX. This would have left me without the phone and at a loss of nearly {$800.00} in total. At the time, I had not yet received any refund for the phone and had been repeatedly told by PayPal representative " Al '' not to return the device unless explicitly directed. 

On XX/XX/XXXX, PayPal confirmed the correct deadline for the return of the device as XX/XX/XXXX. I then shipped the phone on XX/XX/XXXX, via USPS XXXX XXXX, as required for devices containing lithium batteries ( tracking # XXXX ). I also documented the condition of the phone, the packaging process, and the weight of the package prior to mailing, ensuring everything was in compliance with PayPal 's instructions. Unfortunately, USPS appears to have lost the package, and it has not been scanned since its initial acceptance scan at my local post office. 

On XX/XX/XXXX, PayPal closed the dispute in the sellers favor, citing invalid tracking information, despite the valid USPS tracking number I provided, which shows the package was accepted but lost during transit. I immediately appealed the decision, providing proof that I had initiated a mail search with USPS to locate the missing package. Despite these efforts, my appeal was denied on XX/XX/XXXX, with PayPal claiming I did not provide valid proof of tracking that I had returned the device. 

At this point, XXXX decision has left me without the phone and without the {$390.00} I paid for it. I have followed all of XXXX instructions in good faith and have been diligently working with XXXX to resolve the shipping issue. Despite my compliance and efforts, PayPal has unfairly penalized me for circumstances beyond my control, including USPS mishandling the returned package. 

Documentation included with complaint : Evidence Exhibit XXXX : XXXX XXXX ( XX/XX/XXXX ) The ad described the phone as being in pristine condition, with no mention of the numerous deep scratches present. 
Evidence Exhibit XXXX : XXXX from XXXX XXXX ( XX/XX/XXXX ) Shows device with no visible scratches, as listed. 
Evidence Exhibit XXXX : Phone Screen Showing Damage ( XX/XX/XXXX ) Time-stamped photos documenting over XXXX scratches discovered upon unboxing, some deep enough to feel and visible with the screen on. 
Evidence Exhibit XXXX : XXXX XXXX XXXX ( XX/XX/XXXX ) Screenshots proving the phone was activated with my XXXX after the damage was discovered, showing the scratches were not caused by me. Activation is recommended by XXXX as part of the functionality inspection and does not indicate acceptance of the devices condition. 
Evidence Exhibit XXXX : Response from Seller on Swappa Platform ( XX/XX/XXXX ) Exchanges between me and the seller, including my reasonable request for a partial refund and the seller 's hostile, uncooperative responses. 
Evidence Exhibit XXXX : Swappa Staff Recommendation ( XX/XX/XXXX ) Screenshot of XXXX XXXX suggesting I escalate the dispute to PayPal after failing to reach an agreement with the seller. I opened the dispute as instructed on XX/XX/XXXX. 
Evidence Exhibit XXXX : Seller hostile conduct on PayPal ( XX/XX/XXXX ) Evidence Exhibit XXXX : PayPal Offers {$100.00} Refund but Requires Return of Device ( XX/XX/XXXX ) Message from PayPal detailing their initial decision offering a partial refund but requiring me to return the device. 
Evidence Exhibit XXXX : PayPal Reopens Dispute for Full Amount ( XX/XX/XXXX ) PDF from PayPal 's dispute center showing the case was reopened for a full refund of {$390.00} after discussions with " Al ''. He explicitly clarified not to return the device to the seller. 
Evidence Exhibit XXXX : PayPal Threatens Double Charge ( XX/XX/XXXX ) Email from PayPal incorrectly stating I had already received a refund and that failing to return the phone would result in an additional {$390.00} charge, despite " Al '' 's instructions. 
Evidence Exhibit XXXX : PayPal Confirms Full Refund and Return Request ( XX/XX/XXXX ) Email from PayPal confirming a full refund for {$390.00} and requesting the return of the device by XX/XX/XXXX. 
Evidence Exhibit XXXX : Video and Photos of Package Before Shipment ( XX/XX/XXXX ) A video showing local newspaper, detailed shots of the phone condition, packing materials, and weight of the package after it was sealed. NOTE : THIS FILE WAS TOO LARGE FOR THE UPLOAD BUT CAN BE MADE AVAILABLE UPON REQUEST Exhibit XXXX : Photo of the package at USPS, showing the matching weight of the sealed package with final shipping label after acceptance scan. 
Evidence Exhibit XXXX : PayPal Confirmation of Tracking ( XX/XX/XXXX ) Email from PayPal confirming they had received the tracking information and transmitted it to the seller. 
Evidence Exhibit XXXX : PayPal Closes Dispute in Seller 's Favor ( XX/XX/XXXX ) Email from PayPal stating " The decision was made because you did not provide the tracking details we requested. '' Evidence Exhibit XXXX : PayPal Confirms Dispute Appeal ( XX/XX/XXXX ) Email from PayPal confirming receipt of my appeal of the decision. 
Evidence Exhibit XXXX : PayPal Denies Re-Opened Dispute ( XX/XX/XXXX ) Email from PayPal stating " We have reviewed this transaction ( XXXX ) and are denying your case ( XXXX ) because we did not receive valid proof or tracking that you returned the merchandise. '' Evidence Exhibit XXXX : Proof of USPS Mail search ( XX/XX/XXXX )