Consumer Desk: Mary Johnston champions you rights

PayPal can't discuss seller's account

I'M writing in the hope that you can help with my dissatisfying experience with the internet money transferring service company PayPal.

I purchased a mobile phone for £155 from a seller on the eBay website.

I used the eBay payment partner PayPal and the next day I received a letter informing me that the item would be with me in the next three days. This letter had been sent by recorded delivery.

The item failed to turn up, so I emailed the seller who said it would be with me in a few days.

After 10 days I filled in a claim, stating that I had not received the item. When PayPal contacted the seller, he gave the recorded delivery number of the package sent, which was, in fact, the letter telling me about the delay.

PayPal accepted this as proof of postage of the mobile phone and threw out my claim for compensation.

I contacted PayPal frequently, asking how it could let this act of fraud go unopposed. PayPal replied that I should take it to the police and get a crime number if it was fraud, which I did. I would appreciate help.

I HAVE received this response from PayPal. "The problem seems to have arisen that the buyer did sign for a delivery to his house on August 4, 2006.

"It was only after PayPal closed the claim, having found in favour of the seller, that the buyer appealed the decision and notified PayPal that, yes he had signed for a delivery that day but that it was a letter not a parcel containing the mobile phones.

"Unfortunately, therefore the buyer's appeal was denied.

"In accordance with PayPal's User Agreement, buyers can only file one complaint per transaction."

It continues: "PayPal, just like its users, is bound by their User Agreement. As you mentioned to us, Mary, it does seem unfair to the buyer and whilst PayPal does appreciate that the circumstances in the above case are regrettable, it is satisfied that the case has been worked within the terms and conditions of its User Agreement, a legally binding document approved by the Financial Services Authority, the financial regulatory body in the UK. With respect to this, PayPal will not be in a position to offer any recompense at this time.

"You also mentioned that the buyer has contacted the police and PayPal recommends that the buyer attempts to resolve the issue through any means available to him such as a law enforcement agency.

"PayPal will be happy to co-operate with any investigation conducted by a law enforcement official and will present requested information in response to a court order.

"PayPal's Buyer Complaint Policy does not replace or reduce any consumer or statutory rights the buyer may have. PayPal does not tolerate fraudulent use of its payment service.

"If a user's actions are deemed to be fraudulent, PayPal will take appropriate action to prevent any further continuance of such action. However, PayPal cannot discuss the status of the seller's account directly with the buyer.

"While PayPal understands the buyer's concern, as well as his request to be appraised of the investigation process, it cannot release account information to a third party, as stated within PayPal's Privacy Policy".