Here is the situation:
I am an independent seller (not a registered business).
I have sold some documentation.  I have signature proof the buyer
received the documentation.  A couple weeks later he called his credit
card company and reversed the transaction, screwing me over.  I have
the transaction recorded in paypal, and the agreement recorded in
emails.  I know the buyer's name, address, phone number, and employer.

Here is the question:
I want to send a collections agency to retrieve my money.
How do I do this? And can you recommend some agencies that would work with me?


Thanks,
 FeelingTheInternetBlues...

If you have proof the buyer okayed the purchase and received the
service or items, you should be able to provide the credit card
company this information to reverse the chargeback. Contact the credit
card company for information on how to provide supporting
documentation against a chargeback.

Oh, this sounds interesting!

But I am not understanding how I go about doing this.  The credit card
transaction actually happens on PayPal's side.  I don't even know what
credit card company he used.

I tried complaining to PayPal, but they say he claims "he didn't get
what he ordered" (which is bullshit, he asked for papers meeting
certain detailed requirements, which I found and then sent to him) and
PayPal says they do not deal with such situations.  So there is no
issue about whether he authorized the payment or not.  Do I have to
somehow prove to the credit card company that the "product" met the
"specifications"?  The papers he requested are quite technical in
nature and I'm not sure anyone at the credit card company would
understand the details.

Even if he "returned them" (which he didn't) I know that just means he
made a copy for himself.  There were no provisions in the agreement
for returning the item and refusing the service once paid for (because
then I'd get ripped off by even more people).

...

Anyway, are you trying to imply that if I lose the arguement with the
credit card company that I can't get a collections agency to get my
money from the person? I really hope you are not implying that.

See, now you are getting outside what my comment can cover. We will
need to leave this up to an Answerer to research and consider this a
clarification.

But I see no reason you cannot take this to collections.

Okay, thank you very much for your comments.

Working more with PayPal it is becoming very obvious that the buyer is
always considered correct in these instances, regardless.  Or at least
PayPal feels that way.  If someone knows how to remedy this, I'd love
to hear how.

But, until then, back to the collections agencies...
(and your final comment has me hopeful, I hope it really is possible)

Puh-leez note that I didn't say how effective a collection agency
would be. On small amounts-- under $1000-- I have found them to be
about as useful as a iPod for your grandmother. If they (or you, for
that matter) can file a lein against the buyer you might one day have
hope of collecting if, say, they go to buy a car or house.

If you aren't too far from the buyer, you may want to sue in small
claims court. Details of where you live may be helpful to a Google
Answerer in coming up with a good solution.

> Puh-leez note that I didn't say how effective a 
> collection agency would be.

Don't worry. I have a healthy skepticism of ever being able to
retrieve this money.  I just want to pursue every means possible.

In reply to your questions/comments:
These are actually two separate transactions totalling $4000.
The buyer is, to say it modestly, not exactly strapped for cash.  So
availability of funds is not an issue.  I'm not sure why he is risking
his credit rating over something so childish.  What's frustrating is
it looks like he might get away with it.

I reside in Illinois.  He resides in California.  I have already
looked it up, and it appears I can still file small claims (from the
residence of my end of the business transaction). However, small
claims court is really scary to me, because considering the cases they
usually preside over, and how quickly they try to go through cases, I
do not trust the judge to understand the technical details of the
papers ... and if I lose I'd have to pay court costs as well as any
"inconvenience" the buyer claims (such as even flying out there I
believe).

As for a lein, I don't know how these work.  Do I have to first win a
court decision, or can I just file one of these with proof of money
owed (and he'd have to file a court complaint if he really wants to
dispute it to that level)?

I think you will find Small Claims Court the best option. You sound
like you have adequate documentation to present a winning case. I
don't think the technical aspect of the papers matter much. You can
show you kept your end of the deal, he can't. IE, he'll be on the
defensive. A collection agency is going to want a sizable bite of that
four thousand. What the collection agency will do is in a sense buy
this debt from you. The price they will pay is based on how much (if
anything) they think they'll be able to collect. Call a lawyer, have a
letter written on their letterhead, and stating you have absolutely no
intention of not collecting every cent he agreed to, plus the added
expense of your collection efforts. If you win in small claims court,
you will probably receive interest on the money until you collect it.
I hope this has been helpful.

Yes, your comment is helpful.  Thank you.
I didn't realize that was how collection agencies work.  They actually
buy the debt... so you don't have to deal with it anymore?  At this
point, Garaunteed money is worth a consider (even if they do charge an
arm and a leg).  I would at least like to know about this option.

So, any google researcher, I am still interested in a response.  Thank you.

> I don't think the technical aspect of the papers matter much. You can
> show you kept your end of the deal, he can't.

I am actually afraid I will be on the defensive.  He will say "that's
not what I requested".  I will be on the defensive and have to prove
my case.  To show that the documentation met his request, I will have
to get into the technical details ... which he'll probably argue.  He
can probably win just by raising the level of the debate above the
judge's head ... in which case, since he'd be putting me in the
defensive, I'd lose.

A safe bet, even if it is just recovering half the money, is looking
like a good option. (Plus, not dealing with the legal system is always
a bonus.)

No, Snes, as Closeup said the collection agency "in a sense" buys the
debt. When/if they collect, they take a cut. There are companies that
will outright buy your debt as well. It is not unusual to expect to
sell a $4000 debt for about a hundred dollars, or 2 to 3 cents on the
dollar.

The details of a case in small claims court are only a part of the
process. The judge will listen to the explanation of both sides and
consider how plausible each side is. (S)He may watch each testifier
for signs of lying or evasion, or if one contradicts one's own
statements made in the complaint or answer, or contradicts one's own
testimony. Successfully lying while under examination by a person who
is expert at his or her job of the law is pretty tough. You don't have
to overwhelm the judge, just tip the balance in your favor.

One thing that may weigh against your opponent (in my opinion, and I
am not an attorney) in this matter is the fact he paid you and
canceled the payment without notice to you. You have documentation
showing the work was acceptable, he will have none saying otherwise.
Then say he claims to have told you orally; you could (in theory) have
the defendant establish when he told this to you and then produce your
phone records showing no calls to (or, in the case of a cell phone,
from) the defendant in the time frame he cites.

Small claims courts are fascinating places. Visit one.

Okay, thank you for the clarification regarding collection agencies.

And maybe I'll go watch some small claims cases at the local
courthouse during a lunch break.  Hopefully that will help me
understand the process a bit better.

This is all fascinating.
However, for completeness, I would like to reiterate to any Google
researchers that I am still interested in knowing about collection
agencies.  It is well worth $20 for future reference.