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.”

[tealparadise]

I filed one, no idea what it'll do but it makes me feel better about the 150 dollars I am out.

Regardless of whether I get any personal response, the more complaints they get, the more likely it is that something will be done.

Though you would think that with there being so many sites like paypalwarning.com and letssuepaypal.com Paypal would bother to get its act together and stop bleeping people over.

[msm_35]

My understanding is that the complaint filed with the FTC goes into a database.  Workers at the FTC search for "hits" in the database where a business appears repeatedly. A preliminary review of the recent complaints against the business is conducted. If they are consistent in nature, the complaints are pulled for inspesction and review.  The business is contacted to give their side. Depending on the outcome, a cease and desist order may be issued against the company, fines may be levied, or charges filed depending on the violations.

I have had to do this with two different companies over the past ten years. I never heard anything back from the FTC but I did get a call from the mobile phone company president's office asking what they could do to make it right. I said to simply let me out of my contract and don't sell anyone else service knowing they live in a dead zone!  My contract was cancelled immediately with no penalties!! I don't recall what the other company was but there was a similar outcome.

If a class action suit is filed, it is more likely to be taken more seriously if there are complaints on file with the FTC and if the FTC has taken action against the company. Then the chance of PayPal having to reimburse customers for money lost (and maybe even for financial difficulties caused by the withholding of funds) is much more likely to be successful. After an item is sold, the seller must ship the item. So maybe we could be compensated for any hardship caused.

[sotek11]

I sent a message to the site admin on    http://www.letssuepaypal.com informing them of the issue with  signing up when you try to use a gmail account. Same thing happened to me, so I just used another email account. I'm not going to let that stop me from joining in on the class action!

[Robot_2010]

No body has bothered to reply to me from the letssuepaypal.com so that seems to be a total dead end waste of time. I just logged my complaint at ftc.gov

To save you all time here is info will need plus the details I provided. This may also save time for you, simply copy paste and modify to fit your specific situation.

PayPal Address/Phone:

[removed]
[removed]

Problem Description:

This complaint is about unfair business practices and placing holds on funds paid to me from eBay auctions. I have been a customer with PayPal since 2001 with never any problems. I have never had any buyer complaints by selling on eBay and I have a flawless record. My feedback is 100% and all my Detailed Seller Ratings are 5.0 or 4.9 (5.0 is the highest rating). However despite all this PayPal has started placing an automatic 21 day hold on all moneys paid to me through eBay auctions. I feel this should be illegal to hold funds without paying interest, especially considering my near flawless performance for the record. Any type of hold on my account is completely unjustified. PayPal already has exorbitant fees but now this funds hold allows them to make even more off me in a deceptive under the table method.

[5black4]

 Ebay & paypal are so corrupt that only a class action against them will be of any use to the victims aka sellers. They have denied me a positive feedback yet at the same time withhold my money both based on "rules" that they are not following.

 If you have to have people join in ...I am ready. These corrupt corporations will do and say anything to prey upon us sellers. They know that they do not have to follow any practice except what is to their benefit.

 This is so improper...I see all the people that are being abused buy this run-away corruption.

 Sign me up...................

[bfwesley]

If the below is actually true and Paypal is following its policy how come two of my transactions have been on hold even though I provided buyers with tracking information, tracking confirms delivery receipt, the buyers left positive feedback and PayPal refuses to release the funds!!

Quote

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.

Unquote

[chomper615]

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@ms_35 wrote:

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, Chargeable 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.”

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RIP OFFS, BEWARE of PAYPAL, Do not use if you don't want to! They are Thieves!!!!

[amberlinazfate]

Thank you to the people who have posted on this subject. I have 100% positive feedback, and have had this account for probably 9 years without any problems. Paypal is withholding my money, including shipping, I don't know how I am supposed to ship this without any money. I'm not a big ebay seller, I'm a  single Mother living off disability. I was trying to sell whatever I had to get some money to visit my mother, who can not come here for Xmas because she is going through chemotherapy. I had to borrow money from a friend just to ship the item. It was either that or no diapers.

Now I'm encouraged to have open communication with the buyer? What am I supposed to say..." Hey can you leave positive feedback asap, so I can go see my sick mother, otherwise I may miss out on what may be our last xmas together because ebay is withholding the money you sent me to pay for the item you bought?!?"

This whole ordeal is devastating to me, as well as the rest of the family. And I still don't know what I, the person who has done nothing wrong, can do to make this right.

[TickedOffUser]

You'll see in their disclaimer language to the effect of, "These are the criteria we're telling you about, but basically we can just decide to hold up your money because we want to."

This is the kind of financial abuse that the credit card companies are coming under fire for, and quite justifiably so.

[n_gordi]

I am having similar problems with paypal. One buyer accidently gave paypal the wrong acct number and they sent me an email saying that there was a fund reversal request. I emailed the buyer and she told me that she had accidently given paypal the wrong acct number and had fixed it. She said that the bank had posted the payment as going through, yet i still have a negative paypal balance! I need access to my account or else i can't sell anymore items! I am so fed up with paypal!