How to sue eBay or PayPal

ConsumerEmpower · 16-01-2009, 01:58 PM

Version: 9/1/08

ADVICE TO CONSUMERS TAKING A CIVIL CLAIM AGAINST EBAY OR PAYPAL

Many consumers online are asking ‘Can I sue eBay or Paypal?’ and ‘How do I sue Paypal or eBay?’ This guide will attempt to answer those queries.

Blogs are very useful for tips and contacts, but for some impartial, free advice on your consumer rights contact the Government helpline Consumer Direct on 08454 04 05 06 (calling from a mobile?).

Even if you don’t want any advice it pays to inform Consumer Direct of your problem because Trading Standards have access to all of these complaints. Trading Standards monitor these complaints to identify common issues of concern. They cannot resolve every individual’s problem but can target their resources to explore ways of overcoming those systematic issues affecting many customers.

See DISCLAIMER below before deciding how to proceed with your claim.

Legislation may change over time and the advice given is based on the information available at the time the guidance was produced. It is not necessarily comprehensive and is subject to revision in the light of further information.

Only the courts can interpret statutory legislation with any authority.

This advice is not intended to be a definitive guide to, nor substitute for, the relevant law. It has been produced based upon my own opinion of the legal position. Independent legal advice should be sought where appropriate.

There are many hyperlinks within this document which provide further detail on the points mentioned. They may not appear on this post due to technicalities with submissions to this site, however the full version with hyperlinks is here, at attached document - www.penaltychargesforum.co.uk/showthread.php?t=48706

NOTE: No room to post whole document.

You will find below some tips on resolving issues with

A eBay seller and your purchase
eBay
Paypal

as well as some FAQs

PROBLEM WITH PURCHASE?

Paid directly with credit card? Consider a section 75 CCA 1974 claim if goods cost over £100, even if only paid part of cost on credit card

· Paid with debit card for any amount or credit card for goods under £100? You may benefit from your bank’s chargeback protection. Also see PayPal guide on chargeback

Paid by PayPal – If not covered by seller or buyer protection, you may make a claim under the PayPal Buyer Complaint Policy – 13.10
Report seller to Consumer Direct on 08454 040506

PROBLEM WITH EBAY?
eg. overcharged on fees, account unfairly suspended, eBay
refused to provide seller’s contact details (see FAQs below for advice)

You’ve emailed? You’ve phoned (020 8605 3000) and faxed (020 8605 3001)?
What’s next?
Well, you have 2 routes to resolve it:

1.
Send a Letter Before Action. Although your contract is with eBay Europe S.à r.l., Luxembourg you will be able to serve your letter on their UK office (eBay, Complaints Department, Hotham House, 1 Heron Square, Richmond upon Thames, Surrey, TW9 1EJ)

In the letter, clearly set out:

your dispute,
your rights (NB: 08454 04 05 06, here or there) – also check OFT guidance if they appear to be using a contract term that you feel is unfair
how you would like the issue resolved
and give 14 days for a reply before you consider court action,

The letter should be recorded delivery, keep a copy of it and proof it was delivered – the courts will want to see your reasonable attempts to resolve the issue.

ONLY after your Letter Before Action consider 2 or 3

2.
Court
Although your contract with ebay.co.uk is with eBay Europe S.à r.l., 15 rue Notre Dame, L-2240 Luxembourg, you are entitled under the Hague and Lugano conventions to file a claim in your local County Court. (but see Money Claim Online below) and serve papers on relevant offices for the company in your own country. See examples of this working in practice: 1. When submitting a claim ensure you have eBay Europe S.à r.l. as the main defendant.

Should the judge query the ‘Hotham’ address, refer them to this ‘Hotham’ photo. If they want an alternative registered company address the Ebay (UK) Limited, 5 New Street Square, London, EC4A 3TW OR Whittaker House, Whittaker Avenue, Richmond, Surrey, TW9 1EH (registered address for Paypal (Europe) Ltd and Paypal (UK) Limited, a wholly owned subsidiary of eBay Inc) may suffice. Evidence of it working in practice against PayPal.

The courts appear familiar with the rules around suing foreign companies, but should the courts query how you can sue a foreign company and serve papers on a UK address this is some guidance on the civil procedure rules that explains this and the rules themselves. The relevant sections are:

6.6 – see 6.11

6.11 – your contract with eBay (term ‘Governing law and dispute resolution’ at bottom of User Agreement: “You and eBay both agree to submit to the non-exclusive jurisdiction of the English Courts”) and Paypal (term 14.3 ‘For complaints that cannot be resolved otherwise, you submit to the non-exclusive jurisdiction of the English courts’) allows you to make a claim in the UK. Those residing in the UK other than in England, were this questioned by the courts, should argue that a term restricting your ability to claim in your local court is unfair and so void under the Unfair Terms in Consumer Contracts Regulations 1999 – see 17.4 of OFT guidance and top of pg 107 of Annexe for example of what OFT consider to be fair term. Unclear terms are to be read in the consumer’s favour and one could argue that ‘non-exclusive jurisdiction’ permits the consumer to choose courts other than in England and Luxembourg.
6.23 - Address for serving court papers is eBay, Complaints Department, Hotham House, 1 Heron Square, Richmond upon Thames, Surrey, TW9 1EJ
6.33
- (1) it IS a civil claim relating to a commercial contract within the financial limits set down for the county court
- (a) you’re not already suing them somewhere else
- b)(i) they have office in UK
- (ii) Article 16 not usually applicable unless you are disputing misuse of your trademark (s.4). Schedule 3C, section 4 - Article 13, para 3 and Article 14 are relevant.

Most eBay / PayPal claims will typically be straightforward claims for financial compensation and so it would be recommended to use Money Claim Online – easier and cheaper. This appeared to work well for user variousdruid - here. You don’t need solicitors and wouldn’t get such costs back anyway, other than the fixed £50/80 cost as applicable, but if you insist check out or your local CAB (some have duty solicitor rotas), CLS or LCF

3.
If you are unsure whether your claim may be successful and do not wish to risk court, complain to the UK European Consumer Centreon 08456 04 05 03. They have a relationship with Luxembourg’s ECC which may resolve your complaint with eBay’s Luxembourg head office.

PROBLEM WITH PAYPAL?
You submitted your complaint via PayPal's online system and unhappy with the response. The following are thought to be the most helpful contacts: Executive Escalations ppelce@paypal.co.uk

If poor response, THEN try:
crme@paypal.com
appeal@paypal.com
account-review@paypal.com
complaint-response@paypal.com
resolutions@paypal.com
appeals@paypal.com
escalations@paypal.com
Tel: 08707 307 191 & 0208 6053000 Opt 1=Customer services

Assuming none of the above worked, if you have a claim against PayPal you have 5 routes to resolve it:

1.
Send a Letter Before Action (as advised above with eBay) to PayPal Complaints Dept, Whittaker House, Whittaker Avenue, Richmond, Surrey, TW9 1EH and copy to complaint-response@paypal.com

ONLY after your Letter Before Action consider steps 2 - 5
At stages 2, 3 or 5 send a copy of your complaint/claim to their Luxembourg regulator, the Commission de Surveillance du Secteur Financier (the "CSSF"), to direction@cssf.lu or contact here so they are aware of the problems with PayPal. You may not get a reply but only by being aware of the issues affecting PayPal customers can they be in a position to consider regulatory action.

2.
Court
Your contract with PayPal UK is with PayPal (Europe) S.à r.l. & Cie, S.C.A., 5th Floor
22-24 Boulevard Royal, L-2449, Luxembourg, As above, you may file a claim in your local court.

The courts MAY also want to see PayPal (Europe) Ltd or PayPal (UK) Limited (money claim online limits claims to 2 defendants) as a second defendant on your claim paper, both registered with Companies House at Whittaker House, Whittaker Avenue, Richmond, Surrey, TW9 1EH.

3.
If you are unsure whether your claim may be successful and do not wish to risk court, complain to the Financial Ombudsman Service (FOS). Although no longer regulated by the FSA (since their move to Luxembourg) they are still caught by the FOS which will be able to consider almost ANY complaint you may have with PayPal, up to and including poor customer service. Complain here. Some have suggested on blogs that PayPal are charged £300+ for each FOS complaint. While FOS can make this charge, it’s unlikely where the company is voluntarily (as a non-UK company) adhering to FOS’s decisions.

FOS could deal with, for example, claims that PayPal were unreasonable with their deadlines for seeking information from you to resolve your claim. If PayPal have acted unreasonably in freezing your account the FOS can request Paypal to compensate you for lost interest and may also consider your wasted time in trying to resolve the matter, so be sure to include these consequential losses in your claim.

4.
An alternative to the FOS would be to complain to the Commission de Surveillance du Secteur Financier (the "CSSF"), rather than simply copy them into correspondence - contact here.

5.
Complain to the UK European Consumer Centre. They have a relationship with Luxembourg’s ECC which will raise your complaint with PayPal’s head office.

studio1one · 16-01-2009, 08:29 PM

sticky please mods.

**hardwareheroes** · 16-01-2009, 09:51 PM

Quote:

Originally Posted by studio1one

sticky please mods.

Warpath !

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