New Guy: Funds Hold

[Speeddog]

Made a sale on Ebay. Then the funds from that sale are held. They are there but frozen by paypal.  Then I try to make a purchase, but the funds were not held when I sent the money for the purchase. So Paypal tried to take fund out of my checking account, causing an NSF. So i get fined by my bank, for trying to use funds that were in my Paupal account and i was not warned about the fact that Paypal planned to hold funds. So, How do I dispute this?

[skier]

As you are a new seller and made a sale, there is an Ebay/PayPal Policy on holding funds.  This policy is explained here and you should have also received an email or link to the same information.

As for trying to make a purchase.   Because you did not have sufficient funds in your PayPal Account at the time of the purchase, PayPal will automatically go to your primary backup funding source for the purchase amount.  Note, you never had the funds in your PayPal Account because of the hold. 

The next part has nothing to do with PayPal.   Since your bank account did not have sufficient funds, the bank did allow the transfer to PayPal and then charged you an overdraft fee as penalty.   This is between you and your bank and their overdraft policy.   The same thing would have occurred if for example, you used a Debit Card to make a purchase.  Why would a bank allow you to get into this situation in the first place, simple, this is how they make money.  By allowing you to spend money you don't have and then charging you for doing it.

Unfortunally you have no dispute with PayPal.   Perhaps, if you speak with someone from your bank, they may waive the overdraft fee.

Regards,

skier

[Speeddog]

A appreciate the fact that you took the time to reply.

simple fact of the matter is that I was not made aware of this policy prior to them holding the funds. It is a simple cause effect situation. they held the funds, causing the funds not to be available and they did not disclose their intent to do this. This caused a problem with my bank. They removed ownership control of assets in my possession and that's theft in my opinion.

I understand your pretty passionate about defending Paypal... are you an employee or is your spouse?

[mparent]

This last reply guy HAS to be kidding!  The sale was made and item probably shipped.  That is BUSINESS!!!  What other business can you do where money you pay is held in escrow of ANY kind.  How well would that go over anywhere else!  regardless if one was informed.  That is not good business at all!  Paypal is getting the feeling we cannot do without them and they are taking WAY too many liberties with our money.  So the quation is, do we bend over and take it and show them we cannot survive without them?  They need to be reminded how they are making their money.   In fact, they cannot do without us!!!!!!!!

[mparent]

Has anyone checked with the Attorney General's office to see if this is even legal?  It's what I intend to do today.  I will get every agency involved I possibly can!  Watch for this on Good Morning America!!!!!!!