Greetings to the PayPal Help Community,
I have been giving out loans through PayPal G&S for some time now and have had borrowers try to break our contract to escape paying the interest fee's.
I'm currently in a fiasco with a borrower that claims to have had PayPal close his account. Though based on his track record of receiving loans, around 60% of them are refunded "since the money stays frozen for some time". Most ex-lenders of his that I have come in contact with say they were refunded almost immediately.
Now the issue is..
Seven days after I sent the funds ($xxx.xx USD), this user refunds the money in full (which is 1/3 of the total agreed upon time frame) without notifying me. When asked him why, he claims to have had his account closed by PayPal, which I'm not sure if its true or not, or if there's any way to check since I can still see his profile under my previous transactions. The profile would still give me the option to contact the user via email but would not let me open a case since the funds are already on my way. I do have different ways of having the users contact me, which he did NOT do. Nor did he attempt.
My questions are..
How would I check if this user, or anyone has had their account closed by PayPal? Would having money refunded continuously be grounds for closing accounts on behalf of PayPals users policy?
How do I know when the user receives the funds? Given those funds don't leave my bank account immediately most of the time.
I have had dozens of users refund my loans due to the time constraint of their needs, as-well of as the size of the loan (this might raise suspicion) and given I don't "confirm the order as received" when asked. I do this to not void out any buyer protection I might have in the event the other party does not pull their end of the contract.
Perhaps the individual was being honest about the closing of the account, does PayPal flag/close an account that receives too many refunds or refunds too much?
Some lenders submit the refund and I get the money in a period of hours. This specific individuals has submitted the refund since August 26, 2020 and I have not received it. Would anyone might know why this is?
Prior to sending out the funds, some accounts have a "verified" word by their name. Would these individuals receive funds quicker than those who are not verified?
Thanks in advance.
