From TV8 LasVegasNOW: Boat Seller defrauded of $8500 after buyer filed a fraudulent ChargeBack on used Boat sold on eBay Motors. Most credit card companies will not chargeback on “Titled Property” but this one did. It cost this eBay seller her boat and money. Only accept Bank to Bank Wire Transfer for Motor Vehicle Sales!

ChargeBack On Motor Vehicle Titled Property Costs Seller $8500
How this honest eBay seller lost $8500 on her used boat to a credit card chargeback on titled property

A local woman called 8 On Your Side Consumer Advocate Michelle Mortensen for help after she sold a boat on EBay through PayPal in May of 2015.

Months after the sale the buyer filed a chargeback on his credit card for various reasons. The buyer cited it was a lemon and that services were not rendered.

This after the woman, Toni Ristow Lloyd, says the buyer came to her home in Las Vegas to inspect the boat, purchase the boat and take it home to Arizona to be used all summer.

Once the chargeback was filed, PayPal came to her saying she owed them the $8500 earned in the sale. The problem was, that money had already been spent.

Unable to get anyone at PayPal to talk to her, she turned to Michelle. Michelle gathered evidence from Toni, the buyer, EBay, PayPal and the buyer’s credit card company. ¬†She worked every angle of the case for nearly 4 months, but in the end PayPal’s user agreement overruled any evidence she uncovered.

PayPal’s seller agreement clearly outlines its policy on chargebacks and the seller’s responsibility if one occurs.

A chargeback can be filled weeks, or even months, after a purchase in some cases. The take away for you is simple. If you sell on EBay and use PayPal you may be responsible for any and all chargebacks filed in the transaction.

Be sure to review the policy careful before you engage in your next transaction.

A vehicle is considered titled property (car truck bus boat or anything with a title or registration.) In our opinion this buyer shouldn’t have been able to chargeback on titled property. What was said to the credit card company we do not know. Possibly the buyer claimed something else was purchased, or the support rep didn’t know the proper procedure for titled property.

We suggest filing an appeal with PayPal. Call PayPal and ask for a supervisor. Tell them this is Titled Property and to send an appeal on that basis to the credit card company in question.

PayPal is great for the buyer. Especially for buyers purchasing items on eBay or eBay Motors, where buyer fraud against sellers is openly supported. We blogged about another attempted chargeback that with our help was successfully reversed last year.

Like we said in that post – we suggest sellers of vehicles only accept a small good faith deposit via PayPal ($200-300), and have the balance bank wire transferred to the sellers bank account. There is no reversal with that method.

Further info on ChargeBack AKA Friendly Fraud is here on Wikipedia.