PayPal is violating its own policy Section 10.2 - FILE FTC COMPLAINT

[msm_35]

Where is the policy change that allows PayPal to arbitrarily hold funds - including shipping which is not refundable anyway under my return policy - on some sales but not on others. I sold a laptop as broken for parts. It was delivered 3 days ago. There is no claim filed. I sold a working computer worth twice as much 2 days later and no hold occurred.

This CANNOT be legal - especially when my accounts are 100% - never an issue from a buyer???

 If this has happened to you, go to the Federal Trade Commission site (FTC.gov) and file a consumer complaint.

the policy states:

"

Amendment to the PayPal User Agreement, Student Account Agreement, and Acceptable Use Policy

Effective Date: Oct 14, 2009

• Amendment to the PayPal User Agreement

Beginning October 14, 2009 PayPal user agreement is being amended as follows:

We are revising section 11.3 as follows:

1. We are moving it. It will now be section 10.2.
2. We are expanding this section to allow us to place a temporary hold on amounts subject to a claim filed by an eBay user, through the eBay resolution process, if your PayPal account is your eBay reimbursement method.
3. The new language will read:

“10.2 Temporary Holds for Disputed Transactions. If a buyer files a Claim, Chargeback or Reversal on a payment you received, PayPal will place a temporary hold on the funds in your Account to cover the amount of the liability. If you win the dispute or the transaction is eligible for PayPal seller protection, PayPal will lift the temporary hold. If you lose the dispute, PayPal will remove the funds from your Account. This process also applies to claims that a buyer files directly with eBay through the eBay resolution process if your PayPal Account is your reimbursement method for buyer claims.”

[profdata]

Paypal is not violating their policy/user agreement

10.6 eBay Item Hold. PayPal, in its sole discretion, may place a hold on a payment you receive for an eBay transaction when PayPal believes there may be a high level of risk associated with the transaction. If PayPal places a hold on your payment, it will show as "pending" in your PayPal Account.

1. Release of eBay item hold. PayPal will release the eBay item hold after 21 days unless you receive a Dispute, Claim, Chargeback, or Reversal on the transaction subject to the hold. PayPal may release the hold earlier if either of the following applies:

2. The buyer leaves positive feedback on eBay, or (ii) PayPal can confirm delivery. PayPal will confirm delivery if you use USPS, UPS or FedEx to ship the item and (i) use PayPal shipping labels, or (ii) upload tracking information to PayPal via the transaction details page. This applies to US domestic transactions only.

3. Additional hold period. If you receive a Dispute, Claim, Chargeback, or Reversal on the transaction subject to the eBay item hold, PayPal may hold the payment in your Account until the matter is resolved pursuant to this Agreement.

[ampdoc]

 Which means, as a Seller, if you get a buyer who intends to defraud you by claiming not to recieve an item as discribed, you're **bleep**ed. Thus no more ebay/paypal for me. They have great protection for the buyer, and none for the seller now apparently.

[mcc]

TO MY CHIEFS WITH THERE HEAD UP THERE YOU NO WHAT...I GOT A FEW MORE ITEMS WAITING ON THEN TO END THEN IM DONE WITH EBAY AND PAYPAL ..I WOULD SAY ALOT MORE ARE GOING TO DO THE SAME....

[PapillionWyngs]

So where else is there besides EBAY?  I need to know.  I just got off the phone with Pay Pal and they obviously outsource their call center.  I got a very irate woman from Sri Lanka or whatever, and she says that whenever something "risky" is sold, or there is a "spike" in our selling activity, they place a hold on it.  This is not anything I agreed to.  I think we should find an attorney and file a class action suit.,  I bet you anything if they even allow my post up for a second and someone reads it, they will delete it.  Anyone know a good class action lawyer?

[madjen]

It is not true either, that the hold is because you are selling 'risky items'.

Paypal Ebay are lying! Pure and simple. I met none of the criteria and yet

they held my money. Most people do NOT meet the criteria for holding

funds, that is just a smokescreen for what is really going on!

[msm_35]

Section 10.6 states:

..."when PayPal believes there may be a high level of risk..."

There is no reason to believe there is any risk. No holds are on any other sales. Also, the item shipped was very low risk considering it was sold as BROKEN FOR PARTS. Holds are placed arbitrarily AND there has been no warning of a change in policy to affect accounts in good standing and any sale at PayPal's will.

[msm_35]

Also, withholding shipping which is necessary to complete the transaction makes it impossible in some cases to ship the item. PLUS the item was delivered within 3 days and the funds are not released.

The sellers refund policy is not taken into account. How many sellers allow 21 days for a return???????????????? Some items are sold As-Is with no returns accepted. How can PayPal impose its own return policy on a sale without setting the policy with the seller and buyer at the time of sale?

[sandypurins]

msm_35 wrote... "Also, withholding shipping which is necessary to complete the transaction makes it impossible in some cases to ship the item. PLUS the item was delivered within 3 days and the funds are not released."

PayPal will release the funds after 21 days, or... soon after the buyer leaves positive feedback or 3 days after PayPal can confirm delivery of the item. Did you provide PayPal with the online viewable proof of delivery?

msm_35 wrote... "The sellers refund policy is not taken into account. How can PayPal impose its own return policy on a sale without setting the policy with the seller and buyer at the time of sale?"

When selling an eBay item and accepting PayPal payment for the item, the seller has entered into 3 separate agreements... the agreements are between... 1) Seller and eBay, 2) Seller and PayPal, and 3) Seller and buyer. Your "as is, no returns" policy is between you and the buyer... PayPal and eBay are not responsible for enforcing that policy for you.