Larry Pieniazek's LEGO® Trusted Intermediary Process and Rules Page

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 AucZILLA™auction 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.

AucZILLA™auction 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 AucZILLA™auction 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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