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.”

[5black4]

What info does anyone have on a existing classaction?

[Pattio]

Paypal may not be violating its policy but this holding my money in a pending account for 21 days seems like a scam to me.  I have never had a disputed transaction and have over 1,100 feedbacks 100% of which are positive, I ship usually withing 24 hours barring weekends and holidays yet somehow after many years of selling on Ebay, Paypal is holding my money for 21 days!  This is definitely not right and borders on immoral if not illegal. 

I have  to contact Paypal via email but have gotten no answer, need to find a phone number.  Tried to contact them again tonight via the help section but just get an error message and to try again at another time.

So not right.

[sunshine1062]

It might be a good idea for everyone to start calling Ebay and Paypal and complaining. Writing notes or posting won't get results. Who from ebay or Paypal reads them! Go to your local state representative and complain to him or her.

I know alot of people who sale on ebay for a "Living" These people need that money to live off of it.. Paypal wants us to pay for all those shipping fees and WAIT to release our money. This is ridiculous. You don't walk into Walmart, buy something, take it home and then call them to let them know if your satisfied with the item!. That''s how ridiculous Paypal's policy is.

[Robot_2010]

I have called eBay twice and PayPal 4 times and am getting no where. It's like talking to the Wizard of Oz, everytime I call I get another answer. PayPal tells me the hold is because eBay requested it and they have no info specifically why. Ebay tells me my stats are golden and they don't know why it was added. But the details are always different. It's maddening and I am mad as **bleep**.

[msm_35]

You have to file a complaint with the FTC through FTC.gov. They have a place to make complaints to them on line. Talking to PayPal or Ebay is like asking a fox in a hen house not to eat the chickens. What did you expect? He's a fox!" It will have to be the government that forces them to stop.

[jbrownkha]

I am in the same situation. I have been on ebay since 1999. I have accepted paypal as a form of payment since it began. I have 3 negative feedbacks ever(none this year). I was told by Paypal that I have recently had a spike in sales and that is why I have holds on EVERY payment that I receive. The problem I have is there is no spike in sales. I sell around $1000-$1200 a month on ebay and my 6 month total is about $6800. So where exactly is the spike in sales? They told me that my account has been sent for manual review, to try to fix the issue, but that takes 30 days! Plus what the **bleep** is a manual review? Do you mean review by a real person? Are they going to make print outs and give them to people at a board meeting so they can manually review them? Manual meaning not computer assisted? I'm confused. Even if the spike in sales was true, then why, if I were making more money for ebay/paypal, would they hold my money???

The last time I talked to paypal (about an hour ago) I asked how I can get my money faster than 21 days. She told me to call customer service each time that an item is delivered to the correct address and the funds will be released. So I looked at my account while I had her on the phone. I said, "here is a $175 item that was delivered yesterday morning, can you release those funds?" Her responce, "Well, we will have to call the USPS to confirm delivery of the item and once that has been done...." I cut her off from finishing what she was going to say. I asked her why is there always more to it than you initially tell me? Why do I have to jump through so many hoops to get MY money? I can't touch my money. Therefore I can't use my money to pay for shipping which is what I need to do to get my money. How does this make any sense!

So basically this is a huge inconvenience to me. So until they fix this issue I have been, and will continue to be, a huge inconvenience for them. I call a few times a day, ask the same questions each time, question how any of it makes sense, try to figure out what a manual review is, ask to speak to a superviser, repeat the questions again, tell them they are crooked and incompitent, tell them I will call back in a little bit, and then repeat the process. I know it doesn't help, but it makes me feel better.

Sorry for rambling on. I'm just extremely fed up with the whole thing!     

[tealparadise]

Hmmm I'd also like to know if there's a class suit  going.

And thanks for the FTC advice!  Never would have thought of that!

[sotek11]

http://www.letssuepaypal.com

Spread the word! Class Action is underway!

[Pattio]

How do I sign up for the class action suit?

[Robot_2010]

I tried to register over at http://www.letssuepaypal.com but it said my email had been banned... just a run of the mill gmail address. They aren't going to get far with a glitchy website that discourages people from registering.

How is everyone doing with complaining to the FTC? Are they receptive, do they give any encouragement? Has anyone actually talked to anyone there?