Just in case it is in any way unclear: No affiliation with The Lego
Group is implied or intended.
See disclaimer
Trusted Intermediary Service
Notes
- This process, the rules, and the fees charged may be changed based on
feedback, but unless all parties agree, whatever was in effect at the initiation
of a transaction will remain in effect.
- This is NOT the factoring service. That is a different service. It gets a lot more use than this one. If you're just trying to set up an international transaction between trustworthy parties and you don't need the verification steps TI offers you, you should review the factoring information to learn more, or use the factoring form if you're all set to go and have all the details under control.
Using the TI service
Email me if you want to take advantage of this service. I have references
available on request.
Trusted Intermediaries Process Description
What follows is a description of the steps that need to be carried out to perform
a trusted intermediary transaction. It assumes that the buyer and seller have
come to terms on the transaction. That is, they have agreed on the items to
be transacted, their condition, and the price to be paid. They also have agreed
on shipping terms, and that an intermediary will be used, and that it will be
me. All of these preconditions must be met before I will agree to assist the
transaction.
These steps are written assuming there is one buyer (B), one seller (S) one item (I) and
one trusted intermediary (T). The logical changes should be made if there are more of any
of the parties or items (although having more than 1 T does not
make a whole lot of sense.)
Here is the sequence of steps.
- B and S arrive at an arrangement for a transaction. Typically this arrangment
covers the price of I as well as who is bearing what associated costs such as shipping
and insurance. T is not involved in this step.
- B and S agree to use T. Both B and S independently send T an email which must
contain the following.
- An explicit request that T be involved.
- An acknowledgement that B and S have reviewed all the
information on this website pertaining to the TI process.
- An agreement to the fees involved.
- A statement of what exact services are required
(see service descriptions).
- An agreement to abide by decisions T makes in case of dispute.
- Full information about the transaction, including dollar amounts involved, sets involved
and the expected or claimed condition. Use of the terms in my
auction reference will be helpful to describe set box condition.
- Shipping information.
- S must state how I will be shipped. If S does not ship the item
Registered Mail Return Receipt requested, S bears all risk of non delivery. If S does not get
insurance (at the expense of S, although S and B may have agreed that shipping is a pass through
cost that B ultimately bears) S bears all risk of loss prior to delivery to T.
- B must state how I should be shipped. If B does not request and pay for Registered Mail
Return Receipt Requested, B bears all risk of non delivery. If B does not request insurance
(at the expense of B) B bears all risk of loss prior to delivery to B.
- A statement of how payment will be made, and shipping remainder refunded (for B),
or how payment should be received (for S). (Only certain payment mechanisms are available.)
- T will send an email confirming acceptance of the transaction
to both B and S, listing all provisions of the deal and arrangements.
The email will contain an explicit Account Statement for what fees and expenses
are being charged to each party (although some expense amounts are not
known yet by T.) This statement will be the first of many updating progress.
- First of two concurrent steps: B sends a check or uses another
approved payment mechanism, for the full cost of the transaction, including the
purchase price, and extra for Fees and Costs as estimated in the initial
account statement issued by T.
- Second of 2 concurrent steps: S sends the merchandise to T.
- Time passes.
- Concurrent step: Payment from B arrives at T. T verifies
receipt of payment to S. An Account Statement will be sent to both parties.
- Concurrent step: I, sent from S, arrives at T. T verifies
receipt of I to B.
- Syncronization point. Do not pass this point until both
prior steps have completed.
- T reviews I
- T verifies to B and S that I is in described condition.
- T may carry out a Piece Review or Trial Assembly if that
service was requested.
- T may carry out an Instruction Scan if that right was purchased
from S by T.
- T will communicate another Account Statement to B and S
updating with new information that is available.
- 1 day elapsed time
- T sends payment to S using selected payment mechanism.
Payment check amount is as agreed previously.
- T sends I to B using selected shipping mechanism.
- T prepares a final accounting to B and refunds overage
using selected payment mechanism. A final Account Statement will
be sent to both parties.
- (10 days elapsed time)
- I arrives, happy B. Payment arrives, happy S.
Failure Points and Corrective Actions taken
- B's payment does not arrive, or does not clear. This causes a
reauction of I by S. S must make use of T mandatory. T will transship
to winning bidders. T will pursue legal action against B if warranted
and if S requests and assists.
- The unit I does not arrive at T. If S really sent them, he files
for insurance, keeps the proceeds. If S turns out not to have sent
them, bummer. T will pursue legal action against S if warranted and
if B requests and assists. In either case, monies are returned,
minus all applicable fees and costs already incurred, but not
transshipment charge, via whatever mechanism was already arranged
for payment to B in step 2, or via monies transferred from T to B
in the form of AucZILLAauction credit.
- The unit I does not arrive at S. If T transshipped with
insurance, S (or whoever had the misfortune of a lost unit)
files for insurance with carrier, keep the proceeds.
Key Definitions
- Account Statement
- A statement that T will periodically email to B and S showing
what has transpired so far in the transaction, what monies have
been disbursed, and what fees and costs are owed or will be owed
as the trasaction progresses.
- AucZILLAauction credit
- Using credit in an already established AucZILLA(tm) account
to pay for a transaction. There is a one US dollar fee for each
transaction that T levies. T will pass this fee through
to B or S respectively as part of the fees charged. As with all
fees, this fee will appear on the Statement of Account that T
periodically issues.
Some important notes:
- Both parties must already be AucZILLA users with accounts
in good standing.
- Credit to AucZILLA accounts is not eligible for bonus dollars.
- No checks will be issued by Todd for account balances. All funds
must be expended either in AucZILLA auctions, or subsequently
transferred out to another user.
These steps are followed to carry out an AucZILLAauction
credit transfer:
- The originator (the person whose account is being transferred
OUT of) sends a note to the recepient (the person whose account
is being transferred IN to) and to T
(Larry Pieniazek)
The note should state exactly who the
transfer is from, and to, and the exact dollar amount that should
end up in the recepient's account.
- T will effect the transfer by notifying Todd,
or determine why the transfer cannot be effected.
- T will send a note to both parties informing them the transfer
was successful, or why it was not. Note that failed transfers will
still incur a one dollar charge. Note also that if Todd
automates this process, this entry will be updated to reflect that.
- The transfer, and fee charged will appear on the next Account Statement
sent to B and S.
Services and Fees
The following services and fees apply. All Fees, except where noted,
are paid by B. All fees will appear in account statements which both
B and S will see.
Fees charged by T
- Basic Fee - This is the basic fee for the transferrence
of risk and effort involved. The standard fee is 20 dollars or
5 percent of the base purchase price of the item I
(that is, the price before shipping and the TI fees
are added to cost), whichever is higher.
However, this fee is negotiable if B wishes to ask.
- Piece Review Fee - This is the fee for T to examine the
pieces and other set contents and to the best of his knowledge,
determine if all materials are present. This is a best effort based
on examination of bags and general set knowledge. The standard fee
for this service is 10 dollars, and is typically not negotiable.
- Trial Assembly Fee - This is the fee for T to open the
set bags (if any) and actually carry out an assembly of the pieces.
This is a much more accurate way of determining whether any pieces
are missing than the Piece Review. The standard fee for this service
is 15 dollars but based on interest by T in the set may be as low
as -10 dollars (That is, a 10 dollar CREDIT to B) Please ask.
- Settlement Fee - This is the charge for T to settle
accounts by purchasing a money order (not the actual COST of the
money order). This usually is free. However T may (by whim)
decide to charge 1 dollar for the bother of having to go to
the post office when a check and letter would have sufficed.
- Shipping Fee - This is the charge for T to ship in a
manner that T deems (by whim) is unreasonable. It is arbitrarily
high, depending on how unreasonable the request is. T prefers the
USPS and prefers to use Priority Mail.
Costs incurred by T and passed on to one or the other party
All of these costs are the actual cost incurred by T.
- Shipping Cost - B pays for T's shipping costs for
the item I. Actual cost, based on B's selected shipping method,
or a minimum of 3 dollars.
- AucZILLA auction credit transfer cost - B or S
pays T's cost to perform an AucZILLA auction credit transfer.
- IMO Cost - B or S pays T's cost to purchase an IMO
to settle transactions.
- Misc Fees - The party that caused T to incur the
expense pays other fees such as bounced check charges,
arbitration costs (where T was not at fault), legal fees
(where T was not at fault) and so forth.
Payment Information
The following payment mechanisms are may be used to move funds as part
of the transaction. Some are US only. Some are international only,
as noted. T has the right to refuse a particular payment mechanism
for any reason whatsoever (during the setup stage... once the deal is
finalized, evidenced by T's confirming note, no changes will be
made except as agreed to by all parties involved.)
Payments TO T
The following are allowable ways to pay T, as selected during
process definition stage.
- (US Only) Personal checks. T may at his option wait for a
check to clear before proceeding with a step. This may be
initially waived. However T can invoke this right if circumstances
or new information make it advisable.
- (Both) International Money Order. This must be an MO cashable
at the US post office for no fee (or the fee must be added to costs T is
reimbursed for).
- (Both) US Currency. Sender assumes all risk.
- (Both) AucZILLA auction credit transfer. This
involves a transfer
between AucZILLA
accounts. There is a cost of one US dollar for each
transfer that Todd charges T, and which T collects as a cost. This cost is
paid by the other party, not T, and will appear on the Account
Statement. See AucZILLA auction credit
to see how this is carried out.
Payments that T makes to others
The following are ways that T can pay others, as selected
during process definition stage.
- (Both) Personal checks. T will issue a personal check.
No charge by T for the check or postage. (Note that some
countries can accept checks in US funds drawn on US banks,
check with your country. T is not liable for any fees your bank
charges for this.)
- (Both) International Money Order. This will be an MO
purchased at the US post office for a fee and the fee will
be subtracted from the amount of the MO.
- (Both) US Currency. Recepient assumes all risk.
- (Both) AucZILLA auction credit transfer. This
involves a transfer
between AucZILLA
accounts. There is a cost of one US dollar for each
transfer that Todd collects from T and which T collects as a cost.
This cost is paid by the other party, not T, and will appear
on the Account Statement. See AucZILLA auction credit
to see how this is carried out.
In case of disputes
All transactions are governed by the laws of the State of Michigan.
Should disputes arise, all parties agree to work in good faith to
resolve them. However there may be circumstances under which agreement
cannot be reached. In such cases, all parties agree to submit to binding
arbitration. The process will normally be initiated by T, but any
party can do so. I will bear initial costs, but may expect the party
in the wrong to bear final costs.
Should either Buyer or Seller attempt to commit fraud (that's what
this process is designed to avoid) which cannot be corrected in the
course of the process, T will cooperate fully with all applicable
law enforcement agencies.
See the History behind the process.
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Backgrounds courtesy of Fibblesnork
(Copyright held by by Todd Lehman)
See disclaimer