PayPal policy encourages fraud

ILoveKona
Contributor
Contributor

I purchased an antenna product advertised on facebook and used PayPal to pay for it. The seller listed a California address. I received the product that was shipped from California. It was a useless fake item. I went to the resolution center for help. Eventually PayPal responded indicating I could return the item but had to send it using a service that would track the package and require proof of delivery to the address listed in their data field. The address WAS IN CHINA! There is no way to send the product back to China that doesn't cost less than what I paid for the item itself. There is also no way to inform PayPal of this problem because of how their system is set up. So in effect PayPal is complicit in allowing this scam to continue. They profit from working with these false companies and do not have a way for PayPal customers to report this problem. I hope they read this and contact me because it is due to their system and policies that I cannot get my scam purchase reversed. Has this happened to you? If so please respond.

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34 REPLIES 34

DLSigler
Contributor
Contributor

I am just going through this now...same situation.

 

As it turned out, the Chinese company was Keidson. My "not as described" situation is also a bait and switch scam. I followed a Facebook ad offering a full-size computer keyboard for $60, and I received a seven-inch long micro keyboard that you can buy on Amazon for less than $15.

 

PayPal first required me to contact the seller to work it out.  Without hesitation, they responded offering a 5% refund, and I could keep the keyboard to resell or give away as a gift.  Clearly this was an expected and planned response.  I filed the complaint with PayPal and eventually got this resolution:

 

"Keidson has agreed to issue a full refund of $67.94 USD, once you return the item(s) associated with this transaction."

 

A quick trip to USPS revealed the true nature of PayPal's resolution.  USPS could send it with tracking for $45.  FedEx offered to send it for $74.

 

I reached out to PayPal through their messaging feature and further realized that they are very much aware of their contribution to this type of scam.

 

I agree with the below comment that PayPal could make links to reports about scam sellers.  It would help, but the truth is that con artists will eventually just change their names and proceed with a clear reputation.  What needs to happen is that PayPal distinguishes between their customers who simply want to return a product, and their customers who were clearly swindled.  They could control this, but are choosing not to.


Victims need to stop seeing PayPal as a neutral party and start seeing it as part of the scam process. To this end, they need to be included in criminal investigations.  The best way to shut this stuff down is the traditional way report the scam and PayPal's involvement to authorities.  

FBI: https://www.ic3.gov/media/2020/200803.aspx
FBI: https://www.ic3.gov/default.aspx
FTC: https://www.ftc.gov/news-events/media-resources/identity-theft-and-data-security/filing-complaint
"The FTC encourages consumers to file a complaint whenever they have been the victim of fraud, identity theft, or other unfair or deceptive business practices...Although filing a complaint will not guarantee that their problem will be fixed, it can help the FTC and other agencies investigate and take enforcement actions whenever it is warranted. The FTC compiles complaint data that it receives, along with data from other agencies, into a database called Consumer Sentinel. Consumer Sentinel allows members to access consumer complaints submitted directly to the FTC, as well as to complaints shared by over 40 data contributors, including the Consumer Financial Protection Bureau, the Internal Revenue Service, over 20 State Attorneys General, and all North American Better Business Bureaus. More than 2,300 federal, state, local, and international law enforcement users have access to Sentinel; hundreds of individual members access the system each week."

 

I'm sure PayPal has a slew of lawyers who will help address PayPal's position in all of this, but at least American buying victims will know that their situation is on record with the federal government.

 

Public awareness is really the only approach to stopping what seems to be a well-known scam practice. Fortunately, my experience was inexpensive, but I can only imagine the ultimate cost to American consumers.  This discussion needs to move away from a PayPal community forum and into the open air.  

 

I've been wanting to write a book and have been looking for a research topic.  It looks like I may have found one.   If you would like to tell your story to someone who is listening, please feel free to send me your details, and please include any related PayPal correspondence you may have on file.

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dtd96int
Contributor
Contributor
How do we share with you our experience?
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rae1801
Member
Member

I'm also going through this now. I ordered a hammock swing from a website called Pretty Pilus and received a tiny cheap credit card holder. Lodged a paypal dispute and included several screen shots of forum posts and facebook posts of people who had the same issues with this company and identifying them as fraudulent. I first received a partial refund offer which I declined and now they are offering a full refund IF i return the item with tracked postage at my own cost (which is more than the value of the item all together) 
I have lodged a chargeback request with my bank and am hoping this prompts a more satisfactory resolution but I'm disgusted at the overwhelming evidence that is proving that Paypal is complicit in a very obvious fraudulent scam. 

I'd love to hear from anyone else that has had some success with getting some accountability either with paypal, their bank or some other means. 

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janegabel
Contributor
Contributor
racketeering mail fraud Someone needs to start a class action against Paypal. They're allowing these China companies to commit mail fraud and they're aiding and abiding. They using USA addresses and they're coming from China they send a fake piece of crap and then want you to return it. There's no seller protection.
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MimisAngels
Contributor
Contributor

The same thing has just happened to me. I made my purchase on Facebook. 2 Beautiful Comforters & 2 velvet sheets... I was so excited to get them! When the order came in, it was 2 ugly throws & 2 ugly sheets. I was informed that I would be responsible for shipping it to China but I purchased it from a Company in California! My order costs $124.00 but it was going to cost me 83.92 to return it to China. Well, I was mad enough, I decided I was going to ship it back no matter how much it cost, so I took the package to the Post Office. But they would not ship it because the address was too long! SCAM ALERT! I can't believe PayPal & Facebook is letting this happen... Come on PayPal Please help me!

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