Filed Chargeback on Damaged Item, Now Seller Threatens Collections

[ebwhite]

I received an email stating they would send a registered letter and that I owed the $120 from the chargeback.

This registered letter states now that I either return the item or remit payment for the $120 (amount chargebacked) plus a $20 paypal chargeback fee (fee administered by paypal to seller due to the chargeback) and $7.90 "settlement" fee (not sure what this is for, maybe their gas/time/postage).

I never signed a contract stating I would owe any fees due to a chargeback. If I only pay the $120, would a collection agency take this as a debt and put it on my credit? I don't see how a seller can arbitrarely add fees not in a contract then send you to collections for not paying them.

The seller from the get go has been very difficult to deal with and has zero customer service skills- I'd be more that happy to discuss it with them but they don't seem willing to from their lack of responding to emails. The letter asking to remit payment does not state that if I pay they will not send it to collections after I pay which also has me concerned.

[jk]

he could engage a collection agency to attempt to collect $.01 if he wanted to spend the money to do so. At what point is he willing to drop it is only something he knows.

what state is the seller in?

as to the chargeback fees: his claim is that they are damages incurred by him due to your actions. While I understand his position, I also understand yours. You would not have charged back anything if he was responsive to your situation and made earnest efforts to remedy the problems. The problem for you is your actions are not legally justified so he does have a valid argument for the fees. So, as I said before, I would respond (and use written communications, retain copies of anything you send) with you acted as you did because he failed to resolve the complaints and your window to challenge the charges was closing. So, due to his failure to resolve the issues with the merchandise, you took the actions available to you to remedy the situation in the most fair manner possible.

If he will not negotiate on the $20, you will have to decide what you want to do.

as to the $7.90; if it was me, I would tell him to get lost. I suspect that is the certified mail fee or some similar costs incurred by his actions in attempting to collect the $120. Of course, it's up to you what you ultimately do here.

[ebwhite]

Seller is in Arizona. I always thought you had to prove things to collection agencies to send them to collections. I guess its not that hard and they will take anything. I don't see how he could prove this 7.90 fee, or even that 20 fee since its between him and paypal and the merchant agreement he signed to do business with them. Regardless if I caused that action.

[jk]

ebwhite;634439]Seller is in Arizona. I always thought you had to prove things to collection agencies to send them to collections.

Nope. You simply contact them and say: will you collect on this debt?

it is up to the debtor to dispute the claim. They then have a very easily fulfilled obligation to verify the debt. As long as the creditor says; yes, it is valid and he is the guy, they can re-initiate collection attempts. You can demand they cease contact but all that does is mean they cannot attempt to collect on the debt. They can still report it on your credit report.

I don't see how he could prove this 7.90 fee, or even that 20 fee since its between him and paypal and the merchant agreement he signed to do business with them. Regardless if I caused that action.

the $20 and the $7.90 is not a valid debt in regards to a collection agency. Seller would have to have a court determine it was a valid debt. The only way that would happen is if you are sued. The only valid debt is the one you agree to which was the initial contract. You should be able to have the $20 and the $7.90 removed from your credit report it that showed up.

[ebwhite]

Thanks for the info. I sent the seller and email saying the fees are not a valid debt but I will pay the $120 with a signed statement saying it paid in full and no further action or collections with be initiated on any fees or other amounts. I'll update here.

I didn't think they were valid, would a collection agency even try to collect that or would they just not waste their time? In your experience...How easy is it to remove those debts from the credit report if he tries to collect on this 27.90?

[jk]

I didn't think they were valid, would a collection agency even try to collect that or would they just not waste their time? In your experience...How easy is it to remove those debts from the credit report if he tries to collect on this 27.90?

sure they would attempt to collect. They get paid to collect on debts. It is not generally required they validate the debt beyond asking the creditor: is this valid debt?


since the debt was not incurred due to a contract or any other legal obligation, the credit reporting agencies should remove them if you challenge them. They don't always do what they are supposed to do or have come up with other justification for continuing to report the debt. Basically, a person cannot just say: they owe me because I say they owe me, and it be considered a valid debt. If it is due to a sale (the original debt), that is different. That is a valid debt due to a contract.

[ebwhite]

Well, spoke to the seller who has been unreasonable since the purchase. They stated pay within 24 hrs or start collections proceedings. Full amount, the 120 plus those fees. I offered the 120 he said pay it all or its going to collections for a partial payment. I believe he will proceed. I'm worried even if I pay the full amount, they will still sent it to collections just to spite me....I'm sure I can get that removed with proof of a paypal payment...
If I pay the whole amount with those bogus fees, technically, I was overbilled by them for items not in the contract. Can I turn around and send them to collections for that amount after a overbilled payment demand letter? Sorry, I'm being spiteful but its the principal now...