localbitcoins escrow going beyond their remit? a potential warning

[rebroad]

Hi all, I just wanted to share a recent experience I had with localbitcoins, which has left me substantially out of pocket, and most likely the other user in the transaction substantially better off.

I placed an advert selling bitcoins for cash deposits. Making it clear in the first sentence that I accept only cash deposits.

A person opens a trade and sends me the money via bank transfer (i.e. not cash), which is not as safe as it can be reversed.

Localbitcoins escrow service decides after almost 3 weeks of debate to release the bitcoins to the buyer even though the buyer, despite repeated requests from LB and myself, never provided proof that they were the account holder of the bank account sending the funds.

This doesn't seem right to me - that I was forced to sell bitcoins by a riskier method that I made clear from the beginning I wasn't willing to risk.

I'd be interested to hear comments from other people on here about this.

[RCoin]

he said cash deposit not payment by cash. theres a difference. cash deposit = cash into your nominated bank account from a branch

[BitJock-e]

What did your bank say about it?

[dasource]

he said cash deposit not payment by cash. theres a difference. cash deposit = cash into your nominated bank account from a branch

ditto ... seems like the other party followed your instructions.
Surely Cash Deposit is a safe option with little risk ..

[Abdussamad]

he said cash deposit not payment by cash. theres a difference. cash deposit = cash into your nominated bank account from a branch

Cash deposit is very different from bank transfer. I don't understand what you are implying?

[Abdussamad]

he said cash deposit not payment by cash. theres a difference. cash deposit = cash into your nominated bank account from a branch

ditto ... seems like the other party followed your instructions.
Surely Cash Deposit is a safe option with little risk ..

Bank transfer is not the same as cash deposit. Bank transfers can be reversed.

[Abdussamad]

Hi all, I just wanted to share a recent experience I had with localbitcoins, which has left me substantially out of pocket, and most likely the other user in the transaction substantially better off.

I placed an advert selling bitcoins for cash deposits. Making it clear in the first sentence that I accept only cash deposits.

A person opens a trade and sends me the money via bank transfer (i.e. not cash), which is not as safe as it can be reversed.

Localbitcoins escrow service decides after almost 3 weeks of debate to release the bitcoins to the buyer even though the buyer, despite repeated requests from LB and myself, never provided proof that they were the account holder of the bank account sending the funds.

This doesn't seem right to me - that I was forced to sell bitcoins by a riskier method that I made clear from the beginning I wasn't willing to risk.

I'd be interested to hear comments from other people on here about this.

You shouldn't have used LB escrow. They are not reliable.

[ZooKeeper74]

Whats the payment window for? Are you saying LBTC literally refused to accept that the buyer did not uphold trade terms?  They deem your risk a non-issue, they should be responsible for any losses you incur due to a possible reversal.  Or you could have just emptied the account to keep you funds from being pulled out (shitty, but better than waiting 3 weeks to find no better news)