paypal fraud

[thehappytent]

heyhey,

 

on october 2nd i checked my bank balance and noticed a direct debit had gone out for £510, and considering my biggest DD is about £30 i thought i should call the bank.

 

They told me it was from paypal, and that i had to get in touch with their fraud division.

 

So i called them, and explained that i had not tried to buy anything and that my account must have been hacked. They told me they had frozen the transaction and would get the money back from me.

 

So far i've changed all the security stuff on my account as per their instructions, but looking at the dispute in my paypal account all they've done so far is send an email to the ''seller''.

 

What i really want to know is how long should i expect to be waiting before i get my money back, and is there anything that i can do to speed things up?

 

Thanks in advance,

Dan

[tiglet]

The bank are absolutely wrong on this - the money should be refunded by them under the direct debit guarantee and then they should pursue for the amount back.

 

Speak to your bank manager tomorrow and demand that this is done.

[thehappytent]

thankyou!

this is what i thought, and after a bit of reading confirmed.

but wasn't 100% sure, but i intend on going into the bank tomorrow to get it back.

 

why why why would the bank tell me its nothing to do with them? [/rhetoric]

 

thank-ye kindly!

x

[tiglet]

Unfortunately, sometimes people at banks do not seem to understand what the DD guarantee actually means - they hear "fraud" so tell you to sort it out.

 

Under the scheme, your money is protected from this sort of thing and it's actually up to them to sort it out - although I'm sure they would expect you to co-operate in helping them to get their money back.

[CAGisforME]

All you need to do is speak with the bank and tell them that the DD was NOT authorised, you were NOT given 14 days notice of Paypal's intentions to claim the funds and that you want a refund under the DD Guarantee.

 

The bank should refund you immediately (sometimes takes 48 hours)

 

Then the bank will get on to Paypal.

 

Meanwhile I strongly recommend that you remove ALL your bank details from any Paypal accounts that you have.

 

Keep us updated.

 

[Ralph_Bee]

I have just joined this forum because it seems a good place to report my experience with PayPal. This *may* be a coincidence but I have used two credit cards in connection with my PayPal account over the last 2 years and BOTH have had their details apparently compromised (fraudulent transactions detected and reported by the card companies ) shortly after the card details were registered with PayPal, and never before.

YOU HAVE BEEN WARNED.

[buzby]

And there's no eBay involvement with this....?

[Ralph_Bee]

No , I dont believe these problems are connected to ebay. First instance I had used PayPal to pay for item on ebay some time before details were compromised. Second recent instance occurred within a day of resistering a new card on PayPal. Definitely no ebay there. R

[buzby]

In my case, it was an eBay spoof site that created a fake link to PayPal, which had a dummy front end. It was afterentering my Password, then being asked to enter it again (having been re-directed to the REAL site) that alerted me. It is very easy to assume a page refresh flitch, but in this case it wasn't. Took ages to resolve when the money started leaving.

[leslie8546]

HI.......... please take a look at my youtube video about paypal fraud, I cannot include a link to it but it's youtube title is PayPal is NOT secure. thanks Les

heyhey,

 

on october 2nd i checked my bank balance and noticed a direct debit had gone out for £510, and considering my biggest DD is about £30 i thought i should call the bank.

 

They told me it was from paypal, and that i had to get in touch with their fraud division.

 

So i called them, and explained that i had not tried to buy anything and that my account must have been hacked. They told me they had frozen the transaction and would get the money back from me.

 

So far i've changed all the security stuff on my account as per their instructions, but looking at the dispute in my paypal account all they've done so far is send an email to the ''seller''.

 

What i really want to know is how long should i expect to be waiting before i get my money back, and is there anything that i can do to speed things up?

 

Thanks in advance,

Dan

[whitetigerx]

heyhey,

 

on october 2nd i checked my bank balance and noticed a direct debit had gone out for £510, and considering my biggest DD is about £30 i thought i should call the bank.

 

They told me it was from paypal, and that i had to get in touch with their fraud division.

 

So i called them, and explained that i had not tried to buy anything and that my account must have been hacked. They told me they had frozen the transaction and would get the money back from me.

 

So far i've changed all the security stuff on my account as per their instructions, but looking at the dispute in my paypal account all they've done so far is send an email to the ''seller''.

 

What i really want to know is how long should i expect to be waiting before i get my money back, and is there anything that i can do to speed things up?

 

Thanks in advance,

Dan

 

Hi thehappytent

 

I may have some useful advice for you below, I'm a public prosecutor and I've personally sued PayPal before, so I can probably help you out with some information on that:

 

1) PayPal is a financial intermediary so your bank would not be able to refund you directly for the missing money at first. Even if they did, you would then have a negative balance with PayPal.

 

2) Under Section 61 of the Payment Services Regulations 2009, PayPal are required to issue a refund once it has been proved that a fraudulent transaction was made as they are a 'payment services provider'.

 

3) You must follow PayPal's process, which leaves the seller 28 days or so to resolve the issue with your directly, and then PayPal usually gives them another 28 days after they have started looking at the claim where no response has been given, to see if they respond. If they don't then PayPal then fully assesses the merits of the claim and proceeds with recovery if the seller does not prove the transaction was not fraudulent.

 

4) If you paid with a card, at any point, then Section 75 of the Consumer Credit Act 1974 applies and you have to get your card issuer to refund you by disputing the transaction (which requires 30 days to resolve it with PayPal before claiming).

 

5) PayPal are not in breach of the Direct Debit Guarantee Scheme as they collected payment as apparently due, and it has not been proven to be fraudulent yet, so your bank do not have discretion yet. If PayPal refuse to resolve the issue, that does not change as PayPal is itself a registered bank and is therefore a financial intermediary between you, your bank and the seller. Your bank gets taken out of the equation most of the time because of this, unless you use a card to pay. You would therefore need to make your case to PayPal unless it is PayPal itself which has abused the terms of the Direct Debit Guarantee Scheme (which I sued them for).

 

6) In essence, PayPal doesn't really have discretion as to refund, you simply need to wait it out. But in terms of your bank, there's not much they can do if it isn't a card payment. Fortunately, because you have contacted them, you have met with the terms of Clause 12 of their user agreement.

 

7) So don't worry, and keep in good communication with PayPal. Phone them for an update if you have to.