German officials could be sued following accusations of posting a misleading Ebay listing for a pet pug that was seized from a family as part of a debt collection process in December.

The pug, named Edda, was initially seized in the German town of Ahlen after her owners fell behind on city debt repayments.

Officials later listed Edda on Ebay.

The listing reportedly described Edda as a vaccinated, chipped and healthy pug, costing €750.

While this move was noted as "not the usual procedure" by a city spokesperson quoted in local reports, a sale went ahead and Edda relocated to her new home.

Edda's new owner, Michaela Jordan, told local reporters that she was initially wary of the listing, saying €750 was around half of what she was expecting to pay for a pedigree pug.

"I initially believed it was a fake ad," she said.

But after a phone call to the Ahlen city administration number included in the Ebay listing, Jordan was reassured that everything was legal and a healthy Edda could be hers.

However, the situation grew more complex.

A week after picking Edda up, Jordan noted that the pooch had eye problems, which contradicted the healthy comments made in the Ebay listing.

Jordan said Edda has since needed four operations, including an emergency operation over Christmas. In total, the treatments have reached almost €2,000.

According to local reports, Jordan is now seeking compensation for the total of the medical costs from city officials.

But despite the messy the situation, Edda is guaranteed a home with Jordan.

"Edda may of course stay with me," she wrote on Facebook. "I love her very much..."