PayPal Dispute

[zeroaster]

I sold an item to a 'customer' on eBay. He paid with PayPal. I mailed the item to him. He received it the next day. I have tracking information to prove this. Here's what happened next.

He claimed there was a battery missing.
I asked him to prove it.
He sent me a picture showing there was only one battery instead of 2. He could have hidden the other battery, but I can't prove that. So I sent him an email in which I stated I would send him a replacement battery at my own expense.
Several hours later, I received an email from PayPal stating that the 'customer' had opened a dispute with me, claiming that the item he had received was 'significantly not as described'.
I contacted the customer, asking why he had opened a dispute and therefore freezing the funds in my account, after I had just sent him an email offering to send him a new battery, which apparently, was what he wanted. He claimed ignorance of the rules.
Anyways, now my PayPal account was frozen because of him, after I had just offered him what he was asking for. Already furious, I now became suspicious. If he had just spat at my offer and opened a dispute, perhaps he did not really want the battery. He wanted to scam me instead.

Next, I dropped everything and looked at the dispute. PayPal was asking me respond. So I did. I sent them an email explaining the situation and asking them to rectify it. I included a link to Canada Post which showed that the package had been received. I subsequently provided extra responses directly to PayPal. Then, I escalated the dispute to a claim to speed up the process.
They sent me emails telling me that I now had to resolve the dispute/claim. I called them and asked them what they were talking about. I had sent them all the information and documentation. Now it was up to them. I trusted that they would make a fair decision.
How can I resolve a dispute myself? Unilaterally? The word 'resolve' means 'to solve', 'to fix'. Obviously, I couldn't fix the problem, or I would have fixed it. This customer was trying to scam me. I was asking PayPal to help. I provided pages of documentation and proof. Wasn't that enough?

Apparently not. They awarded the customer $180 to replace the battery. Can you believe it?
I contacted PayPal again, asking which school the person who had decided to pay $180 to the customer had attended. I appealed the decision.
A few days later, on appeal, PayPal awarded an extra $109 to the customer and closed the dispute. They then told me my account was frozen until I paid them the negative balance (I had not been able to work during this time, because of the dispute, so I had made no sales and there was no money in the account). Now, they want me to pay them more money to reopen my account.
I first called them, asking if they had really sent me this email, awarding the extra $109 to the customer. They agreed that they had. It wasn't a spoof email or some kind of joke.
PayPal is claiming that since I did not choose to 'resolve' the claim in their dispute resolution center, I forfeited the funds. They are trying to tell me that all the emails I sent them, and all the information which I did provide in their dispute resolution center are invalid and worthless, because I did not place this information in a text box after clicking on 'resolve'.
Again, how can I resolve something by myself? I saw the 'resolve' button, but I did not click on it, because I was waiting for PayPal to 'resolve' the dispute!

Now my business is in ruins.
The 'customer', who had no feedback on eBay, he was a first time buyer, is laughing and planning out his next scam. He gets to keep both the item and my money.
And PayPal won't let me close the account and start over. Not that I have any faith in them or want to continue doing business with them, but I have no choice. They have a monopoly on this type of service.

So my question is, can I take PayPal to court?
I am in Toronto, Ontario, Canada. PayPal's Customer Agreement says that I would have to go to New Brunswick to deal with this. See below.

14.3 Law and Forum for Disputes. Except as otherwise agreed by the parties or as described in section 14.2 above, you agree that any claim or dispute you may have against PayPal must be resolved by a court located in New Brunswick, Canada. You agree to submit to the personal jurisdiction of the courts located New Brunswick, Canada, the purpose of litigating all such claims or disputes. This Agreement shall be governed in all respects by the laws of Canada.

I don't want to do this in New Brunswick. I want to do it in Ontario. Can I sue them or take them to Small Claims or something in Ontario? Besides simply paying these thieves at Paypal, what are my options?
I don't want this to happen again to myself or to anyone else. But PayPal's 'Seller Protection Policy' is worthless and misleading. This isn't the first time they have refused to back me up, but it is definitely the most insulting incident. I can't imagine working with PayPal again, but they have a monopoly.

I wish I knew what to tell you. But I don't have a clue. I just wanted to write and say that I am so sorry you are having this problem. I myself am having a huge problem with ebay. Between them and PayPal (same owners, ya know), they DO have a monopoly going on. I would love to see them both fall flat on their faces, so to speak! Seller's don't have any rights anymore. It's crazy that you had to pay that much money and that they allowed someone to do you that way. Ebay and PayPal are really quite a joke!
Sincerely, Brooke

[majidpucit123]

It's never pleasant when you experience a transaction problem. However, using the Resolution Center, you can resolve any transaction problems promptly and easily.

When a buyer opens a dispute in the Resolution Center, it's your chance to:

* Communicate directly with the buyer to resolve the issue amicably.
* Provide prompt customer service that can gain you repeat business.
* Avoid the possibility of a dispute escalating to a claim or chargeback.

Originally Posted by Brooke

I wish I knew what to tell you. But I don't have a clue. I just wanted to write and say that I am so sorry you are having this problem. I myself am having a huge problem with ebay. Between them and PayPal (same owners, ya know), they DO have a monopoly going on. I would love to see them both fall flat on their faces, so to speak! Seller's don't have any rights anymore. It's crazy that you had to pay that much money and that they allowed someone to do you that way. Ebay and PayPal are really quite a joke!
Sincerely, Brooke

I won't pay Paypal. I have opened a new account and they can go **** themselves if they think I'm going to tell them where to find me.

Same for eBay. They keep sending me emails telling me to pay my balance I owe with them. But I can't pay the balance because my PayPal account is frozen. It's like a catch-22 situation. And there is no way to straighten out the situation.

So my original business is in ruins, and I have had to start a new one.
I hereby vow to **** paypal and ebay ten times over the way they have ****ed me. I promise.

[judg4]

World Law's lawyers could also probably intervene and help resolve this if need be. You may email them on the home page.

[zeroaster]

Originally Posted by majidpucit123

It's never pleasant when you experience a transaction problem. However, using the Resolution Center, you can resolve any transaction problems promptly and easily.

When a buyer opens a dispute in the Resolution Center, it's your chance to:

* Communicate directly with the buyer to resolve the issue amicably.
* Provide prompt customer service that can gain you repeat business.
* Avoid the possibility of a dispute escalating to a claim or chargeback.

I did that. I provided pages of documentation there. PayPal ignored it. Then they ruled against me. Then they awarded the buyer more, on appeal. Then, they turned down my second appeal. Their argument was that I hadn't clicked on 'Resolve'. I explained this in my original post.
Their 'resolution center' is bogus and a sham.