PayPal paypal.com PayPal limited my account, refuses to give reason, stole my money San Jose, California

And they pay shills to defend them on here, its so obvious.  The people that defend them put up absurd arguments and ignore the facts, screen shots, etc.  They have a horrible rating (the worst they can get) on the BBB Trustlink (see screenshot).  Keep putting up the truth and try to drown out the idiots defending paypal.  Paypal has to be one of the worst companies on the planet.  Human refuse.

No, PayPal isn't a bank.  They are a money transfer service.  But they are required to comply with the Patriot act and the 'Know Your Customer' (KYC) regulations.  This means confirming your identity and what money transactions you are doing.  PayPal would be very negligient if they didn't perfoem due dilligience about their users.  Look up 'Know Your Customer' on Google and you can read about it.  Don't plan on them releasing your money until you follow the rules.  By the way, this was in their user agreement in Dec. 2010 so if you didn't like the idea, then why did you start using them?

Do not bother discussing anything with Ronny G.  He spends an inordinate amount of time and energy defending Paypal.  I wonder why??  He does not address the issues raised in your posting and only tries to throw out suspicion on your motives or your competence.  He uses belittling language and I believe is associated with paypal or Ebay or both. 

i had the same issue just this past sunday with my account. i  am also a seller on ebay with 100% feedback for 4 years now. my account was "limited" due to some out of country purchases i made . i tried to upload my photo i.d. after a million tries telling me my file was too large, i called them. the lady was very nice and had things fixed within minutes and i could resume spending my own money . they even told me why my own money was being withheld.  i just feel theres a little something missing from this story .  you did something shady for them to lock up your account.

Nevada??

PayPal, Inc. is licensed in the following US jurisdictions:

Jurisdiction
Regulatory Agency
Statute

Alabama
Alabama Securities Commission
Sale of Checks Act

Alaska
Alaska Department of Commerce, Community, and Economic Development
Alaska Money Services Act

Arizona
Arizona State Banking Department
Transmitters of Money Act

Arkansas
Arkansas Securities Department
Uniform Money Services Act

California
California Department of Financial Institutions
Transmission of Money Abroad Law

Colorado
Colorado State Banking Commissioner
Money Order Act

Connecticut
Connecticut Department of Banking
Money Order and Travelers Check Licensees Act

Delaware
Delaware Office of the State Bank Commissioner
The Sale of Checks Act

District of Columbia
District of Columbia Department of Consumer and Regulatory Affairs
Money Transmitter Law

Florida
Florida Office of the Controller
Money Transmitters Code

Hawaii
Hawaii Division of Financial Institutions
Money Transmitters Act

Idaho
Idaho Department of Finance
Money Transmitters Act

Illinois
Illinois Department of Financial Institutions
Transmitters of Money Act

Iowa
Iowa Division of Banking
Money Services Act

Kansas
Kansas Division of Banking
Money Transmitters Act

Kentucky
Office of Financial Institutions
Kentucky Money Transmitters Act of 2006

Louisiana
Louisiana Office of Financial Institutions
Sale of Checks and Money Transmission Act

Maine
Maine Office of Consumer and Credit Regulation
Money Transmitters Act

Maryland
Maryland State Bank Commissioner
Maryland Money Transmitters Act

Massachusetts
Commonwealth of Massachusetts - Division of Banks and Loan Agencies
Foreign Transmittal Agency

Michigan
Michigan Office of Financial and Insurance Regulation
Money Transmission Services Act

Minnesota
Minnesota Department of Commerce
Money Transmitters Act

Mississippi
Department of Banking and Consumer Finance
Sale of Checks Act

Nebraska
Nebraska Department of Banking and Finance
Sale of Checks Act

New Hampshire
New Hampshire Banking Department
Money Transmission Act

New Jersey
New Jersey Department of Banking and Insurance
Money Transmitters Act

North Carolina
North Carolina Banking Commission
Money Transmitters Act

North Dakota
North Dakota Department of Financial Institutions
Money Transmitters Act

Ohio
Ohio Department of Commerce
Transmitters of Money Law

Oklahoma
Oklahoma Banking Department
Oklahoma Financial Transactions Reporting Act

Oregon
Oregon Department of Insurance and Finance
Money Transmitters Act

Pennsylvania
Pennsylvania Department of Banking
Licensing Business of Transmitting Money or Credit Act

Puerto Rico
Puerto Rico Bureau of Financial Institutions
Laws to Regulate the Business of Money Transfers

South Dakota
South Dakota Division of Banking
Money Order Business

Tennessee
Department of Financial Institutions
Tennessee Money Transmitter Act of 1994

**Texas
Texas Department of Banking
Money Services Business Statute

Utah
Utah Department of Financial Institutions
Check Cashing Registration Act

Vermont
Vermont Department of Banking, Insurance, Securities and Health Care Administration
Money Services Act

Virginia
Virginia Bureau of Financial Institutions
Money Order Sales and Money Transmission Services

Washington
Washington Department of Financial Institutions
Uniform Money Services Act

West Virginia
West Virginia Division of Banking
Issuance and Sale of Checks, Drafts and Money Orders Act

Wyoming
Wyoming Department of Audit - Division of Banking
Wyoming Money Transmitter Act

Ronny,

The last time I had to go through this process with clearling up the account limitation, I asked the rep why such a cumbersome procedure, and she flat out told me "to be in compliance with federal banking regulations".

I challenged her on that statement, and she told me that federal banking regulations apply to any company that holds money belonging to a third party and anyone who pays interest or dividends on the money being held.

The bottom line is that under federal banking laws you cannot hold someone elses money without being subject to regulation, and penalties for non-compliance.

The recent Patriot Act enhanced many of these regulations, and also created many new ones.

There are different classifications of "banks".

Your favorite! First Premier. They do not offer checking or savings accounts or any other services but credit cards, but they are a "bank".

For legal purposes relating to consumer protection, Paypal is a bank.

Yes correct, PayPal offers Visa and Mastercards..I have one myself and even though it has a PayPal logo on it..it is a Mastercard issued by JPMorgan Chase. If you have a PayPal card Steve...look on the bottom of the back of the card...see it?

"PayPal" however is NOT a bank and NOT subject to the same regulations as a bank. They are a PRIVATE independant business (owned by eBay) and yes, although they are subject to certain rules and regulations, they are NOT in ANY WAY a bank..nor do they claim to be..

What is PayPal then you may ask?

..."PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to traditional paper methods such as checks and money orders."

Yep, plain and simple in black and white. Maybe even you can understand.

A court order? I don't think so.

If your account was really "limited", they have an online resolution system. Usually it is a question of identity, and a simple verification process clears it up. Usually you have to fax or email documents.

Also, federal banking rules do apply here. Paypal IS considered a "bank" under those rules.After all, Paypal issues Visa and Mastercard branded debit cards and credit cards!

File written complaints with state and federal banking regulators. File in your state, and also in Paypal's. Also file a complaint at ftc.gov.

Paypal will actually tell you that the reason they take this security action is because they are a bank and are required to under the new homeland security rules.

In 10+ years with PayPal, my account has been "limited" twice, and each time it was in relationship to a move and a change of address. I faxed in documents as requested and the issue was cleared up within 48 hours.

If so..then like the rest of us must conform to their rules and regulations. If they are going to offer any protection to buyers..surely they are not going to risk their own money.

So..what did you do wrong? Or..what is it they say you did wrong?

If you are brave enough...post your eBay seller user Id. Then all of us experienced eBay users can determine if this is an actual ripoff ..or if you are trying to violate the terms.

No,  this email was legit.  I am aware of phishing emails.  My PayPal account is really limited because I logged into my account and it shows as being limited.  They will not let me withdraw or send money or even close the account.  They told me that without a court order they will not tell me 'why' they decided to do this either.

Those emails are a common scam, and I get them all the time.
Never even open that email. Forward it to spoof@paypal.com.

When you "responded" to Paypal, did you do it from your Paypal account management page that you accessed from a clean browser, or did you click on the link in the email that was sent to you?

Paypal will never send any email with any sort of request for personal or financial info is made.
They simply don't do it.

Paypal does not email any notice such as the one you recieved via email. ALL communications from Paypal will be sent directly to your Paypal account management page as a message. Then, depending on your preferences, you may get an email notification telling you that you have a message.

I have been with both Ebay and paypal for over 10 years now, and I have recieved no less than 50 of those scam emails in that time.

I suggest you open a clean browser right now and log in to your paypal account to see if you were actually dealing with Paypal, or a scammer.

If you gave out any personal or banking info to any link from that email, someone most likely has cleaned you out and compromised you account.

Paypal also has numerous warnings on their site, as does Ebay, identifying these types of scams.

All you have to do is read, pay attention, and use common sense.

And, forget the BBB. They have no power to do anything to anyone. They are not a governement agency. They are a "for profit" business just like Paypal.