Consumer complaint received 2020-04-20
Product: Money transfer, virtual currency, or money service — International money transfer
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc (GA)

I went into contract with XXXX XXXX, owner of XXXX XXXX XXXX, XXXX. on XX/XX/XXXX. I sent him a deposit to begin work on my application would should have span over a course of 3 months as stated in the contract. As the 3 month mark approached, my app was nowhere near ready for testing or launch. I'm in tech, so I understand that there are delays in the development process at times. I did, however, have to constantly express my disappointment in a lack of response and consistent communication about the progress of the app. As we continued, and the app seemed to make little progress, I continued making my payments, eventhough the contract was breached ( which I brought to the merchant 's attention ). 

Due to the fact that XXXX was very unresponsive throughout the process, I began working directly with his development team lead. This was in XXXX. We removed XXXX from our communication as it seemed as though information was not being communicated clearly by XXXX. 

On XX/XX/XXXX, the lead developer working on my application ( who has a separate agreement with the merchant ), explained that he was not getting paid and so therefore certain features we spoke about would not be included in my application. He also mentioned that my project might not get finished due to him not receiving funds from XXXX. We had a long 3 hour conversation about how XXXX poorly ran his business. The Lead explained that because of the shortage he had to pay his team out of his pocket just to work on my app and it was putting a strain on his home life. 

On XX/XX/XXXX @ XXXX XXXX EST I sent XXXX a bunch of texts explaining that we needed to have an urgent conversation. XXXX did not respond until the next day XX/XX/XXXX @ XXXX EST saying " everything we discussed remains the same. nothing has changed since our last conversation ''. Our last conversation consisted of us going over the apps and their features ( this included a social media and marketplace all in one app for the agreed upon {$7500.00}. He also mentioned that the Lead developer " doesn't know how he gets his money, he's just paid ''. This seemed a little odd, but I trusted him. 

Once the Covid-19 pandemic landed and shifted all businesses to work remotes, I followed up with XXXX of XXXX XXXX XXXX to understand if business would be impacted. We were so behind already, I wanted to know the status of work. I knew he wouldn't update his customers because his communicate was poor so I took it upon myself reach out. I reached out via text on XX/XX/XXXX, asking if the team would continue the project, given the recent changes to the project discussed with the Merchant. I received no response. 

On Friday XX/XX/XXXX I followed up again and did not receive a response from the Merchant. 

On Monday XX/XX/XXXX, I had a call with the Lead developer who was creating the product and they said they hadnt spoken to the Merchant in over a month nor had they been paid for their services. They informed me that my project would be terminated unless I was willing to pay an additional {$100000.00} to cover their losses in their dealings with XXXX XXXX XXXX. I reached out to XXXX after speaking with the lead, asking for additional information. I reached out via text, XXXX, XXXX call and audio. The Merchant finally responded saying hed give me a refund but could not and would not disclose when Id be refunded. 


After speaking with the lead who was developing the app, they mentioned on XX/XX/XXXX that they have not been paid by XXXX and therefore would terminate any further development on my app until the Merchant paid them what they were owed. They encouraged me to reach out to XXXX to see if I could somehow convince him to pay them so that work could continue. They also encouraged me to sue him for his poor business practices. XX/XX/XXXX at XXXX I sent a text to XXXX XXXX I continued texting him with no response. It was not until XXXX that I received correspondence from XXXX stating that he had a family emergency, which is why he has not gotten back to me. I would have understood had the Merchant not used excuses in the past for his poor communication with me throughout the lifecycle of the project. I informed him that all work should cease on the project and requested a refund. XXXX mentioned hed call me to discuss. I asked when and he stated he could not give me a date or time. I requested that he just send me my funds instead of having a formal call. After cursing at me via text for not being sympathetic to his current excuse, he agreed to give me a refund but could not and would not provide a date in which Id be refunded. 

The Merchant proceeded to block me on XXXX, XXXX, and text. Therefore leaving me no way to get in contact with him ( this was all due to me requesting a refund ). 

I proceeded to create disputes on the payment platforms in which I paid XXXX, on time, monthly, in hopes that I would receive some of the money I paid. 

I have had to retained an attorney who has since sent a Demand letter out to the Merchant requesting a full refund of all funds.. I also do not have a product or the code for the app that was in development, nor do I want it. The merchant also mentioned that he's since had another team develop my app. This was NOT in our agreement. 

I have disputed my claims with Paypal which is where most of the transactions occurred. I paid {$500.00} every month ON TIME since XXXX and I have nothing to show for it. I created a claim on Paypal and they denied my claim immediately. After getting in touch with a claims specialist, they mentioned that I entered the wrong reason for the claim and I should update it. However, I am unable to do so, and there are no reps to help me so my hands are tied. All i want is a full refund and I'll be good to go. 

I have copies of my texts with the merchant, copy of my demand letter from my attorney, and a copy of the breached contract