PAYPAL Paypal.com A WARNING to those who apply for Paypal's Debit Card! Internet

As per Paypal's TOS, they reserve the right to put limits on your account for whatever reason they see fit. This includes Debit Card applications!

Recently, my friend applied for a debit card through paypal. After reading over the FAQ and all documentation listed, she decided to go for it. What could it hurt? We both do a lot of transactions through paypal (upwards of $1000 a month), so it's not unusual for us to have a good amount of money in Paypal. Having the debit card would have made it easier.

Here's what happened:

The application was initially denied because the MAIN address listed on the paypal account did not match the address listed on her ID. She's a commuter, and has three different residences she stays in and all are LISTED and VERIFIED on Paypal. The address on her ID was listed in her paypal, but was still denied. BUT the SAME ADDRESS AS HER ID WAS ON THE REQUESTED PROOF OF ADDRESS WHICH WAS "VALID" BY PAYPAL STANDPOINTS. So obviously, someone messed up.

After this was "fixed", the process began again. But the next day we found that it had been DENIED again afterwards. Mind you, we are now on our THIRD call to Paypal to figure this out. The first two were not sure why they were denied, but the third stated that it was because she did not show up on Experian's database.

Here's where it gets REALLY sticky. The rep told us we needed to call Experian's customer service line and "explain the story" to them, so they would "update the profile". But Experian's customer service line will only allow those who have purchased credit reports from them (the FREE ones still come with a fee) to call the line (it requires a report number, which requires purchase).

We were also informed by the FOURTH rep that Experian is not aware that Paypal is using their service. Meaning that they would most likely NOT be sympathetic about our claim, and still require us to purchase the report.

The fourth rep, Dahlia, had us go to creditreport.com to obtain "free" credit report that runs through several different sites, including Experian. We asked her to remain on the line so that we could fill out the profile and we could get this all fixed then and there. She refused, saying she could not stay on the phone with us any longer, so we gave her our number so she could call us back in a few minutes.

The application took less than two minutes, and then the site stated that they could not check our credit, and after a little digging we found out that it was because she had NO CREDIT TO CHECK. Sites like Experian say in their FAQ that if you do not have credit, that your credit score is not available. By then, Dahlia had called back and hurriedly informed us that the credit site SHE SENT US TO WOULD CHARGE US 14.95 MONTHLY SUBSCRIPTION FEES. Mind you, she waited long enough for us to actually SIGN UP for the site before telling us this. We then relayed the information, and she got really nasty with us.

We then moved onto the FIFTH and FINAL rep, in which we demanded to speak with a supervisor about the issue. After explaining the situation to Janet (or Janice, or Janette, I don't recall), she stated that there was NO WAY TO REMOVE THE LIMITATIONS from the account, EVER. She simply said she needed to make a new account, with a different email address, different financial institution, and not of the same type. My friend, who paid extra every transaction to have a premium account without the limitations, was now completely unable to have another premium or a business account because of Paypal's TOS.

The supervisor also stated that Paypal reserved the right to limit your account for any reason, but they don't disclose on the Debit Card page that you are required to confirm you identity through a credit check. Because of this, my friend's account is completely unable to send funds. In other words, Paypal has all our money.