Paypal Chargeback

[h3avytrooper]

Hello to the community, I have a serious problem with PayPal and I do not know how to address it just yet. I received a payment from a friend, this payment was a debt for some cash I gave them some years ago. After I got the money, a month or two later, my friend and I had an issue and we no longer see eye to eye. He then went to his PayPal account and reported the transaction as an unauthorized one, he lost the dispute from PayPal and he filed for a chargeback with his bank. Even after winning the dispute with supporting documentation, Paypal later on charged the money to my account giving me a negative balance. This is a very big scam I am falling into because if I pay the money, I will loose and he will get away scot free. what can I do. I can not reach him and he has blocked me and fled. The PayPal customer service has not been helpful at all. What is the best way to resolve this. I can not pay money I do not owe.

[sharpiemarker]

@h3avytrooper 

Your account is negative until outcome of the chargeback which I guess you will try to challenge by responding to it. If PayPal closes the chargeback case because your friend’s card/bank refunded your friend, then you’re responsible for the refund because PayPal had to refund the bank and you are ultimately liable.

You’ll have to take friend to small claims court for your loan if you have a written contract or something on record of them agreeing to pay you back. Try not to argue with people who owe you money in the future.