FEDEX Damage Claim Process and Questions

[dastro123]

I recently sold a pristine, high end audio system consisting of 4 components.  I shipped it from FEDEX/Kinkos location and they boxed, packaged, and shipped it using my account number.  Each item was packaged very well and insured for its proper current value.  One of the items, the most expensive, arrived with heavy box damage, the component itself has physical damage, and it now won't operate properly.   The buyer submitted a FEDEX claim but used the incorrect tracking number (incorrect insurance value as well), and tried to submit pics via fax.  They turned  out black and couldn't be used.  He refiled using the correct tracking number then emailed me the pics and I uploaded them and had the claim amended to make me the owner/filer as FEDEX instructed.  While they review the claim for $2200, the buyer is demanding that I submit a claim relinquishment letter to FEDEX so that if there is a settlement, the money goes directly to him.  FEDEX is advising me not to do this.  The goal is to take the settlement, if there is one, and transfer 100% of it to the buyer via Paypal the same day.  Also, there is the question of who the damaged unit belongs to if the claim is settled and the buyer receives the full value of the damaged unit?  I don't feel he would be entitled to both the damaged component along with the item's full replacement price.   What would be the best way to make sure the damaged unit is returned to me while paying him the repalcement money?

[missjen831]

FedEx is right. If you relinquish the payment to the buyer, he can easily get a double refund by filing with eBay or PayPal. Neither will care that he collected on the insurance and they will refund his original payment to you. I would definitely refuse the relinquishment letter. You could instruct him to file a return request with eBay and immediately issue a refund. Or you can simply stand your ground and have FedEx issue a check to you. I do think the buyer should get his refund now but since no case has been filed, you can wait until you get the insurance money from FedEx.

[couldabeenworse]

I agree that you should keep the claim in your name - and should have done so from the start.  You may have dodged a bullet when the buyer made errors on the claim.

I don't feel he would be entitled to both the damaged component along with the item's full replacement price.   What would be the best way to make sure the damaged unit is returned to me while paying him the repalcement money?

Why would you feel that you are entitled to both the damaged component and your money, but the buyer isnt???

If Fedex pays the claim. they are entitled to do what they want with the item, which might be returning it to you, abandoning it with the buyer, or using it for a doorstop.