PayPal Froze Then Stole Over $2275.07 From My PayPal Account

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I’m retired and rely partially on the sale of some of my things to supplement my Social Security pension payments. In 2020 PayPay notified me that they were suspended my account for violation of their User Agreement, stating that I would later receive an email directing me how to transfer my $2275.07 frozen funds. I have never received any form of communication from PayPal regarding release of my frozen funds.

In early January, 2021 I received an email notice from PayPal (I think) stating that there was a security issue relating to my account and that I should change my password. When I logged on to change my password, I noticed that my PayPay balance registered as $0.00. I knew that I had over $2200 in my account so I reviewed Transactions to see who emptied my account, thinking that maybe I got Phished in changing my password. To my surprise and dismay I saw that PayPay had transferred my entire $2275.07 balance TO ITSELF for “Damages” caused by my violation of PayPal’s User Agreement. I was flabbergasted since I have been waiting on their email instructions (like they said they would ) how to transfer my balance out of my PayPal  account.

This arbitrary and contradictory action by PayPal damaged me, not them. They are using their monopolistic position in the marketplace to bully consumers. Big Tech censorship and tyrannical abuse of their economic power at its worst. I don’t use the term “monopolistic” lightly or without a legal basis. After PayPal froze my account, I opened a Venmo account so I could transfer payments to my friends and grandkids. After a SINGLE transaction from my bar buddy who owed me $500, I got a notice from Venmo that they were suspending my Venmo account. WTF? When I inquired why they suspended my account they decline to disclose why, stating that they couldn’t say without giving away their terms of scrutinizing Venmo transactions. The only thing I could think of is that they are following me from one online payment platform to another (they own both) to discriminate against me without due process is just wrong and abusive. The only thing I can think of is that PayPal and Venmo are colluding to quash competition by discriminating against consumers based on age and race. Maybe the Federal Trade Commission and the Consumer Credit regulators will have suggestions/influence to convince PayPal to do the right thing. By the way, I have been a PayPal customer since not later than 2001. Some thank you for helping fund their colossal growth!

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kernowlass
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@Temp20220202aq 


https://www.paypal.com/us/webapps/mpp/ua/useragreement-full?locale.x=en_US#actions

  • If you’ve violated our Acceptable Use Policy, then you’re also responsible for damages to PayPal caused by your violation of this policy; or
  • If you are a seller and you violate the Acceptable Use Policy, then in addition to being subject to the above actions you will be liable to PayPal for the amount of PayPal's damages caused by your violation of the Acceptable Use Policy. You acknowledge and agree that $2,500.00 U.S. dollars per violation of the Acceptable Use Policy is presently a reasonable minimum estimate of PayPal's actual damages considering all currently existing circumstances, including the relationship of the sum to the range of harm to PayPal that reasonably could be anticipated because, due to the nature of the violations of the Acceptable Use Policy, actual damages would be impractical or extremely difficult to calculate. PayPal may deduct such damages directly from any existing balance in any PayPal account you control.

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kernowlass
Esteemed Advisor
Esteemed Advisor

@Temp20220202aq 


https://www.paypal.com/us/webapps/mpp/ua/useragreement-full?locale.x=en_US#actions

  • If you’ve violated our Acceptable Use Policy, then you’re also responsible for damages to PayPal caused by your violation of this policy; or
  • If you are a seller and you violate the Acceptable Use Policy, then in addition to being subject to the above actions you will be liable to PayPal for the amount of PayPal's damages caused by your violation of the Acceptable Use Policy. You acknowledge and agree that $2,500.00 U.S. dollars per violation of the Acceptable Use Policy is presently a reasonable minimum estimate of PayPal's actual damages considering all currently existing circumstances, including the relationship of the sum to the range of harm to PayPal that reasonably could be anticipated because, due to the nature of the violations of the Acceptable Use Policy, actual damages would be impractical or extremely difficult to calculate. PayPal may deduct such damages directly from any existing balance in any PayPal account you control.

Advice is voluntary.
Kudos / Solution appreciated.
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parts42a
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This very same scenario happened to a large number of users.  If you notice, most of the "incidents" happened within a short period after Ebay quit using paypal for its payments and started their own managed payments.  Coincidence?....probably not.  I bet you were not given a specific reason except for "you violated the user agreement".

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Temp20220202aq
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You got that right! Thanks for your comment. Neither PayPal nor Venmo, both of which have cut me off, would tell me HOW I violated their policy, nor give me a chance to dispute their arbitrary actions. I’m a retired attorney and have been conveying PayPal and Venmo”s practices that reek of a lack of due process. In law that’s called “arbitrary and capricious”. As we hurdle toward a cashless society private companies, that have a monopolistic influence, should not be permitted. The moderator marked my initial complaint as “Resolved”. I don’t think so. I am preparing Complaints with the FTC, Richard Cordray, past director of the Consumer Financial Protection Bureau and Ohio Attorney General, the current Ohio Attorney General, and the Better Business Bureau to see if I can get any relief. By the time I’m done, it’s going to cost PayPal more than they have already confiscated from me. I have heard the same issue has been suffered by a lot of other users. I think I’ll get in touch with my former law partners and explore the feasibility of a class action lawsuit. I don’t have much else to do....

 

PayPal, are you listening?

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Kerry
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Can I get an update on this wardog48160?  Did paypal actually resolve the issue and not just copy and paste generic rhetoric?

Thank You! 

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Temp20220202aq
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Kerry,

It appears that it was no more than a cut and paste response. To date there has been NO resolution of the issue complained of. The opinion of the initial commentator that rated the complaint as being Resolved, just by simply sending me a link to the user agreement, is BS. It appears that PayPal does understand the legal concept of due process. They assert that PayPal is entitled to liquidated damages (because we had to agree to their adhesive terms in order to participate in their service) without specifying how I violated the User agreement. It’s like being thrown in jail without a trial just because the police claimed you violated the law without telling you how.

wardog48160

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Kerry
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As I suspected... Sorry to hear Paypal is demonstrating nazi-like behavior.  I guess we now know their true colors as we do with FB, twitheads, etc.

Are you using another service?  If so, cause I sure don't want to support a bias-bigoted platform even though I've been using pp for over a decade.

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Temp20220202aq
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Kerry,

I’ve been using PP since at least 2000, 2 decades, and this is the thanks I get. I switched to Venmo and got banned after a single transaction collecting a debt. I suspect that Venmo’s aren’t PP was the cause of that.

What does the title of Commentator mean? And why doesn’t PP have a means for appealing such an action? They withdrew $2275.00 from my account at the end of December and DIDN’T EVEN GIVE ME NOTICE either before or after their confiscation. I didn’t find out until I logged into my account in order to withdraw some money. 

Do you have any suggestions?
wardog48160

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Temp20220202aq
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Kerry, I got a notice that you responded to my last. Following the link got me an error message that the message is no longer available. You or PP? Direct Email username <removed>. wardog48160

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