Report: #1037831

Complaint Review: Paypal Inc.

  • Submitted: Mon, March 25, 2013
  • Updated: Mon, March 25, 2013
  • Reported By: Danny Johns — Garden City Michigan
  • Paypal Inc.

    United States of America

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Paypal Inc. can no longer hold funds for 180 days by law. Many account subscribers today are getting automated emails by Paypal telling them their accounts have been limited and that they not able to appeal, after seven days of ignoring the first email sent, Paypal kicks out another email telling you that after 45 days you can have the funds currently in your account and that you may now appeal the action on your account. Is this a case of one hand not knowing what the other is doing? I visited Ebay to find out more on this matter and they were very helpful.

Here is the second emails we got:

Dear paypal account holder,

We routinely review account activity in the PayPal system. When we reviewed your account, we noticed that your activity violates some of the agreements you have with us. [continued below]....

Because of this, weve limited your accounts and can no longer offer our services to you. Youll still be able to log in to view your transaction history, but you wont be able to send or receive money.

Whats the problem?

We noticed one or more of the following problems:

1. You provided information that we believe was false, inaccurate, or misleading; or

2. You sent or received money that was potentially related to f fraudulent activity; or

3. You have more than one account with a negative balance; or

4. You are in violation of the User Agreement, the Commercial Entity Agreement, the Acceptable Use Policy, or another agreement you have with PayPal.

Our decision was based on terms outlined in these agreements.

What to do next As allowed under the User Agreement, well hold the money in your account for 45 days. Well use your balance to reimburse buyers who file claims, chargebacks, or any other reversals against you. Before we reimburse the
buyer, in most cases, youll have a chance to respond to the claim, chargeback, or reversal.

Well send you an email after 45 days letting you know when you can withdraw money from your accounts.

If you think that we permanently limited your accounts in error, you may appeal this decision. Just go the Help Center and click Contact Us. When you contact us, well need some information to process your appeal. Please have your drivers license, your Social Security or tax ID card, a current utility bill, your business license, your articles of
incorporation, or other identifying documentation.


As you can see Paypal Inc. is requesting every bit of personal information on you as they can, and this account was less then 45 days old with no bank account or credit card added to it. This account was shut down because it received payments from people and not from their websites which we believe is the main reason they shut accounts down. If you do not allow people to send money anymore via donation or email, then why boast about the service when you don't provide it. Shutting accounts down based on account activity alone should be suspicious to the Paypal user, and never provide anything other then a bank statement or utility bill over the phone or via fax. We are asking that the FBI and California State Attorney General's office conduct a complete investigation of Paypal Inc regarding the use of personal documents gathered from people online in order to provide service when they are registered as a banking institution. 

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This report was posted on Ripoff Report on 03/25/2013 12:28 PM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Consumer Comment

PayPal Literally Does Not Care About You

AUTHOR: Margaret Dommon - (Norfolk)

They do not care about you nor care if your business is going down the hole. They will kick you in the stomach, face, shins, knees and in your groin.


All they do is take your money and put your business at risk if you are not careful. Not to mention they purposely leave your account vulnerable for hackers to hijack your account and empty your banks and cards for that matter. Worse of all, they say it isn't their problem so they don't take any blame on that.


They put that blame on you. I had this happened numerous times and PayPal has done nothing to remedy it.


This is why I buy stealth accounts from Auction Essistance to avoid adding my own personal information and having it stolen.

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#2 Consumer Comment

PayPal Is Just A Scam Artist.

AUTHOR: Oscar Wallar - (USA)

I was limited too last year with no rhyme or reason. They just placed a limitation without a logical explanation. Tried several times to contact their customer service, but none of the sholomos at PayPal can offer any support whatsoever. After wasting several months trying to appeal it, they just decided to make it a permanent limitation.


Way to go PayPal. I have a family to support and you decide to pretty much leave me at the edge of putting my family at risk.


I had to take desparate measures and go the path of stealth with the help of Auction Essistance. Is it the best way? Not exactly. But when you deal with PayPal, you must take some extremem measures just to protect your income. 

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