Have you felt like you have been ripped off by Paypal and the buyer protection coverage?  I urgue you to join our potential class action lawsuit against Paypal.



Hi, I'm a paypal user just like you.  I found out recently that Paypal's buyer protection plan didn't cover the purchases that I made.  


I was recently scammed out of two payments of $429 for a total of $858.  The seller imuttagurulabs (who goes by zigapps on freelancer.com) refuses to release any work product.  There were three payments required of $429, and two of them were made which requires the seller to deliver the beta version of the program that we agreed on.  The seller refuses to deliver, and paypal refuses to cover the purchase because they say the item is intangible.  This item is not intangible.  Paypal was complicit in the fraud when they released the funds while the seller was obviously commiting a fraud.  


You can't act like an escrow agent sometimes and a money transmitter other times.  You violate the statues of your money transmitter license when you hold yourself out as an escrow agent to the public.

Here are some players and details:


PAYPAL, I WANT MY MONEY BACK.  If you want to settle this matter, you know where to reach me.  I will not take this site down until resolution.




Dear J,


My name is Laura and I am a member of PayPal’s Executive Escalations office. Thank you for your reply.


I have taken this opportunity to review PayPal Purchase Protection Cases PP-002-195-312-386 and PP-002-193-124-577 again. As we have preciously advised, these transactions did not qualify for PayPal’s Purchase Protection. You have advised that the payments were partial payments for a custom application; PayPal does not offer coverage for intangible/digital items, items paid in multiple installments, custom items, or services.


We are unable to offer you any form of reimbursement for these cases, as they were worked appropriately and in accordance with PayPal’s policies. Any further resolution must be obtained from your seller.


I sincerely apologize for the difficulties you experienced while using our services. If you have additional questions, you may reach my team via email at 




Very sincerely yours,



Executive Escalations

PayPal, Inc.




3:14 PM (1 hour ago)
to me

Dear me,


My name is Karen and I am a member of PayPal’s Executive Escalations office. Thank you for your recent email. Your concerns were forwarded to me for review and response.  From your inquiry, I understand you are contacting us regarding PayPal Purchase Protection Cases PP-002-195-312-386 and PP-002-193-124-577, in which you were the buyer.


 I apologize for any inadequacy or inconsistency of service you feel you have received to date. We accept that issues like yours can be very confusing and we hope that by clarifying the situation and offering you the right advice we can help in explaining PayPal’s actions.


A review of your PayPal account with the registered email address, yadayadaemail shows that on February 5, 2013, and February 7, 2013,  you filed buyer complaints against your seller, iMuttaGurulabs , citing 'Significantly Not as Described' as the complaint reason. The case references for the complaints are PP-002-195-312-386 and PP-002-193-124-577.  Ideally, we would like to see every transaction completed in a fashion that is satisfactory to both parties.  It is frustrating to hear that was not the result of your recent purchase. 


Further to PayPal’s investigation into your claim, this item was not determined to be "Significantly Not As Described" as the item was considered to be intangible, as the payment was indicated as a service during the checkout process. As a result the transactions are not covered by our buyer protection policies. Therefore, your claims were closed in the seller’s favor on February 16, 2013. 


Additionally, the payments indicated you sent multiple payments for the same service. As advised in section 13.2 of our User Agreement “To be eligible for PayPal Purchase Protection you must meet all of the following requirements… Pay for the full amount of the item with one payment. Items purchased with multiple payments – like a deposit followed by a final payment – are not eligible…”


The definition of "Significantly Not As Described" can be verified in our User Agreement which you can access by following the “Legal Agreements” link at the bottom of any PayPal page. PayPal Purchase Protection was created to assist with these problematic transactions.  However, we do need to place parameters around our handling of claims.


We are satisfied that these claims were worked correctly and in accordance with our policies concerning items received ‘Significantly not as described’. As a result we are unable to offer you any form of reimbursement in these cases. We encourage you to work with the seller directly for further resolution.


I sincerely apologize for the difficulties you experienced while using our services. As always, please feel free to contact PayPal’s Executive Escalations Department at (their email) if you have any questions or concerns or if we can be of further assistance.


Very sincerely yours,



Executive Escalations

PayPal, Inc.



4:23 PM (33 minutes ago)
to  everyone
I'm sorry you feel that way as this was not a service, but a 2/3rds payment of $1495 towards the android iphone application.  The seller, once he received your decision in this case has decided to go MIA.  This was a fraud from day one.
I don't care what your policy is, and I'm not taking down the site
If you decide to pay me my money, I will be happy to not broadcast your decision.
Until I receive my funds, I guess we will have to disagree.  You know my email address, and I look forward to a resolution.  
BTW, until you rectify this situation, you are complicit in the fraud.  I am now filing a complaint with the PA Dept of Banking in reference to your money transmitter license.  I expect to get resolution.   My next step will be small claims court where I will be happy to meet with your attorney should you decide to defend your position of money transmitter masquerading as an escrow service.  
I will accept as settlement the money that I have been defrauded of ($429+$429).  The cost to settle from this point on will increase.   
Until I receive my funds, I guess we will have to disagree.  You know my email address, and I look forward to a resolution.  
Once again, feel free to visit my site
Very sincerely scorned,
cc: Pittsburgh Tribune Review
      Pennsylvania Department of Banking