Complaint Review: PayPal Inc - San Jose California
- PayPal Inc 2211 North First Street San Jose, California U.S.A.
- Category: Internet Fraud
PayPal,PayPal Inc PayPal Fund "HOLD" Dishonest Practice San Jose California
Case in Point:
I listed two items on Ebay as first time seller. A buyer bid and won the items on October 31, 2008. He got notice he had won. He then via his PayPal account paid for the two items. PayPal then removed the funds from his credit card and placed them in the funds in my PayPal account but placed the funds immediately into a HOLD status and gave instructions to SHIP NOW. Thinking it was normal I shipped the items and obtained tracking number via U.S. Postal Service.
I then received information from PayPal that:
You've received a payment, detailed below. We've placed a temporary hold on the funds for this transaction.
PayPal and eBay are working together to make payments for eBay items even safer. Because we want both buyers and sellers to feel confident about sending and receiving payments through PayPal, we may temporarily hold payments for items sold on eBay.
Make sure to ship the item right away, so you'll have access to the funds sooner. We'll release the hold in 21 days unless you receive a dispute, claim, chargeback, or reversal on the transaction subject to the hold. We may release the hold earlier if either of the following occurs:
The buyer leaves you positive feedback on eBay.
We confirm that the item was delivered.* We can confirm delivery if you ship the item with USPS, FedEx, or UPS and either use PayPal shipping labels or upload tracking information from the transaction details page. This applies to transactions within the United States.
None of these facts of operation were made public to start with! The U.S. Postal Service confirmed delivery was made on November 6, 2008 at 11:12 a.m. the items were delivered to buyer. The buyer was sent email asking if he had received items and the buyer was not aware that his funds were on hold by PayPal and in fact thought that PayPal had already paid in full the funds. The Buyer had already left Positive feedback on the Ebay page. As of November 8, 2008 the funds are still under HOLD status.
Ebay charged for the sale, PayPal charged for handling credit card transaction, then PayPal HOLDS funds collecting interest on funds and yet seller is out product with no funds. Phone call to PayPal simply resulted in being informed that the funds will be held as NEW combined actions of Ebay and PayPal.
PayPal seems to be obtaining funds from interest of consumer's funds via credit card transactions, should this not fall under some kind of racket classification?
Without making their practice of holding funds NOT being made public up front fall under a larceny or embezzlement classification?
On the PayPal website they make the following statement:
Government agency partnerships. Our security teams cooperate with the FBI and other law enforcement agencies.
If the FBI is involved then what does that say for the FBI??
Being that PayPal and Ebay are using delivery services such as U.S. Postal Service and United Parcel Service such they investigate these acts? Should they be held accountable for the actions of PayPal and Ebay when funds of purchases are not completed?
Why is the Federal Trade Commission not investigating this type of case?
Who investigates the possible thousands to millions of dollars obtained in interest that PayPal is getting by holding up people funds especially when delivery of products are confirmed by people like U.S. Postal Service and UPS?
By PayPal holding up the thousands to millions of dollars in funds of sellers, how bad is this affecting an already declined economy?
Such VISA investigate the corrupt practices of PayPal and Ebay being that they are behind the cards that PayPal issues?
PayPal and Ebay once an item is scanned and officially in transit from seller to buyer, the funds being released at that point would be somewhat acceptable then a protection return/refund process then could be carried out. But to hold funds after buyer has received items is clearly a criminal action and should be deemed as illegal consumer act.
They should also make clearly up front that possible holding of funds will occur but they will not do this for they will have to close their doors for no one will buy or especially sell anything else via Ebay.
I ensure this was not just a one time mishap, I listed another item and the same thing happened but I contacted buyer and we both agreed to cancel transaction and did so.
Surfing, now there are more people now taking stance of the abuse of PayPal and Ebay.
I recommend that everyone who is victim of PayPal and Ebay contact your state Attorney General's office and then file complaint with:
Federal Trade Commission
U.S. Postal Service
United Parcel Service
Better Business Bureau
Submit your issue with local newspapers and media sources so the public is made aware of the corruptive practices of Ebay/PayPal!
Contact your local Senator and Representative and ask them questions why funds are being denied and put back into a falling economy.
Make sure that you print and document every detail for someday you may need it for this practice has to be deemed corrupt!
Lake Dallas, Texas
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This report was posted on Ripoff Report on 11/08/2008 06:24 AM and is a permanent record located here: https://www.ripoffreport.com/reports/paypal-inc/san-jose-california-95131/paypalpaypal-inc-paypal-fund-hold-dishonest-practice-san-jose-california-389148. 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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