A Massachusetts man says eBay withheld over $11,000 from his $23,750 truck sale — then told him to hand over the keys

A Massachusetts man recently experienced a setback after selling his 2014 Toyota Tundra on eBay for $23,750. Initially, eBay only released $11,625 of the proceeds, leaving $11,125 unclaimed. The seller, Keith Mackenzie-Betty, expressed frustration, stating that he would not part with the truck until he received his full payment.

Despite the buyer having fulfilled their obligation, eBay followed up to inform Mackenzie-Betty that the remaining amount had not been released. After contacting CBS Boston, it was revealed that eBay and the buyer had resolved the issue. An eBay spokesperson explained that a miscommunication occurred regarding the title transfer process.

Mike Danford, co-owner and Chief Strategy Officer at Adverio, noted that such issues are common among online marketplaces as they act as escrow accounts to protect buyers while optimizing seller cash flow. He added that platforms hold funds for various reasons, including high-priced items and seller suspensions. Other platforms like Amazon, Etsy, and Walmart may also withhold funds under specific circumstances.

In response to these concerns, a bill was introduced in Congress to provide protections for online sellers, but Danford recommends reviewing a platform's disbursement terms before engaging in transactions.