Account Limitations: What You Need to Know

[JenerSilva]

My account was permanently limited no explanation just "we feel like it" and you agreed to our TOS. PayPal then has the nerve to say they must hold any money that's rightfully mine for 180 days. This service is an absolute joke and robbery.

[AmyBat]

Similar thing happened with me yesterday. I'm a new user. I have transferred money to my paypal account even though i haven't confirmed my identity. Silly me used my nick name (it was shorter and closer to my legal name). Now Paypal has closed my account and keeping my money for 180 days without paying any interest. Their procedure is very wrong. They are able to receive money into an account that is not activated but then unable to return that money.

So ridiculous!!!! 

[Robertwatson]

Yes I agree IL be opting out of pay Pal once this is sorted they have been a joke from start to finish !

[DLT56]

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@Rachaeld1980 wrote:
Agree with the whole concept and reasoning behind limitations and happy to provide evidence, however I'm not a business so can't provide evidence I'm just selling unwanted goods from home. How do I resolve this PayPal give scripted answers on phone and email and aren't responding to my dm on Twitter.

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i would try the facebook page and message them

you might get a robot at first but keep going they will ask if you want to talk to an agent

to be truthful they are better than going through PayPal site

and they did help me resolve my problem of limited account

if they ask for photo I.D you need a passport / driving licence / or military I.D 

i had none of the above so had to sent a copy of my birth certificate and a tax form which i luckily had

and it has to be in within the last 6 months

also proof of address is a utility bill, again it needs to be seen  front and back

so place it on a table keep your hands off the page so you don't accidentally obscure any writing or logos

with your fingers

good luck

Dave  

[BuySocial]

Well i still don't understand why my account got closed. And many users worldwide don't understand that too!

Any way already prepared a document to send to your regulators cssf, the european comission and european central bank.

There are many questions that i have for example if there is a risk associated that means that there is a rating or scoring for each account right?

Why we has merchants don't have that information?

If paypal because of the risk of potencial loss closes the account then every merchant account should be subject to a compliance and risk analysis before accept any payment on behalf that merchant.

If payment received from paypal is considered a credit risk to paypal and some sort of loan to a merchant for 180 days then paypal must make the necessary capital reserves for each considered payments to follow the prudential financial risk management 

If my suspicion is right PayPal does not have capital adequacy ratio above the required 8% if every transactions and payment to a merchant is considered has credit/loan.

That makes and interesting perspective how leveraged is PayPal at their recent M&A operations.

By summing a such huge amount customers can their solvency be at risk?

Does PayPal has their provisions against a potential lawsuit/fine for abusive of dominant position i think that should be really interesting debating subject at the European Commission and specially at the Central Banks where PayPal operates

because if there is a 180 days chargeback risk that is transferrable to PayPal so it means that this a loan/credit that paypal is grating to each paypal receipient.

So in this case only last year 2017 PayPal volume of transactions was 451.27 Billion Dollars if we add their pure finance operation the loans that they perform to their clients and their recent M&A less holdings that should not be considered has capital but reserves or provisions

How much capital does really PayPal has? Is it solvent?

[Da13]

No I meant escalating to FCA - quite frankly the PayPal system seems to be a series of robots with anodyne responses and no action. Just file an official complaint to PayPal using their channel then follow it up immediately in writing. The good news (for me at least) that they have within the last hour released my money. Complaining elsewhere may help google **bleep**-PayPal for email addresses. I did this and it may have helped.

[Da13]

Sorry - same old, same old....standard automatic responses and no-one actually doing anything.  I’ve called customer services five times all the documents are there but they are not being reviewed.  Rather than just telling me what I can already see on my screen someone needs to DO something rather than jus5 trotting out the same irrelevant pre-prepared automatic responses. That would be some kind of customer service. 

[Stej]

My Account was also limited 3 months ago due to sending money that I owed to a family member. 

I sent in all the relevant documents that they asked for - and so did my family member. Instead of dealing with our questions and helping us when we asked what needed to be done, they just closed 3 accounts and are holding £9,000 for what they tell me is in case of charge-backs. I don't have anyone who can make any charge-backs, because I have never sold anything.

We are over 90 days in and trying to get paypal to budge or send a real response, is like pulling hens teeth.

Instead of helping to sort things out when we asked, they also reversed money that I sent to the family member, who had already withdrawn the amount to their bank account, so now they have a minus balance and won't budge on bringing it back to 0.00 until paypal sort the mess that was created by them, unnecessarily.

Things have gotten so bad, that I have applied to the courts and also contacted a national news paper who are willing to help. 

Last night - I felt so low because of one of their response emails, I actually contemplated suicide - and emailed paypal to let them know just how I was feeling - I won't go into the ins and outs of that, but suffice to say, I had a police man knocking on my door this morning asking me if I need help. 

I explained things to him - and that in the end, I had realised that I am not and never have been a weak person, but paypal had made me feel so low because I have bills to pay etc, for that brief moment, I couldn't see any other option or way out.

Whilst I still feel very low, because of paypal and how they are treating me and other people, I am going to continue with the court case and hopefully make it public via the press. 

I really feel that it is time that paypal were regulated - and (stupidly) I thought that ending things would maybe open peoples eyes and let them see just what paypal are doing to people, but seem to constantly get away with it. 

I am not a high lord hand-waver, or anyone important, but where I can I am going to fight these b******s, they shouldn't be allowed to make people feel like this - and neither should we be reading in other forums that paypal have caused people to lose their business or home

Paypal should have independent people dealing with their appeals and should be regulated according to British law if they are trading in this country. 

[Da13]

I agree wholeheartedly with what you are saying.  The behaviour is truly shocking and abysmal, I do not believe that the financial conduct authority can have any idea that this organisation behaves in this way.  Unfortunately you have to wait 8 weeks from filing a complaint with the company before escalation is permitted.  So, I suggest you join me and file a complaint in writing (I have done this) then after the required time escalate to the FCA - if they get enough complaints they will take action.  PayPal deserve the regulators attention and hopefully a hefty fine if they cannot put this right themselves.

all others in the same boat reading this please do the same - file a complaint then back it up with a complaint to the fca.

[Stej]

Hi  Da13

When you say we have to wait 8 weeks to make a complaint for it to be escalated, did you mean to their escalations department?

I am happy to file a complaint with the FCA, but I have heard that it takes 6 months or more for them to do anything, I think this is why paypal think that they can get away with the 180 day period? It really does need changing - and I have seen others say, if this were a bank or any other financial company, things would be dealt with by the correct authorities, paypal however, seem to be a law unto them selves.

It really needs to be changed - and I am happy to join forces with anyone who wants their voice heard!