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.”

[wkw]

I don't understand the buyers ability to freeze funds if the communication on the front end outlines that the item he or she is buying is a no return,no refund item.

[tealparadise]

If anyone wants to get involved in a suit against - someone posted the URL of a forum where they were talking about doing a class action suit.  I joined up and now I've received an email with the info of their lawyer and how to get in contact with the lawyer to share my story.   So if anyone thinks / knows they have legal grounds for their dispute, I think the URL is letssuepaypal.com

Also -  keep filing FTC complaints!  Even if it's just "shady" business and not outright illegal, the courts will take things like the number of complaints filed into consideration.

[5black4]

Filing a FTC complaint. Do you have a link to contact the FTC about this particular paypal matter? I will send my info into the class-action situation but as you state many FTC complaints can maybe get some action.

[Robot_2010]

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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.

[Robot_2010]

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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]

Thank you for the FTC info. This practices by ebay/paypal are so outrageous that it is impossible to accept this mistreatment by them just because they feel they are all powerful..and care less about their good ...100% ...5 star sellers.

 I do...just like you do all that I can to keep my 100%/5 star rating give very careful care and customer service to my buyers. It it time that we get the same type service from ebay/paypal. If were to rate them it would be a ZERO with no stars.

 Best to you.

[5black4]

I have the info for the attorney and plan to contact them....so don''t give that up. We are out here looking for fair treatment.

[fourthaxis]

I wanted to chime in on this and double post. 

This happened on my GFs paypal account, and I'm stunned.  I'm a "top-seller" (whatever that means), verified, 2003, premeir, blah blah blah, so I've never seen this message before. 

Is it certain categories, certian items, certain shipping destinations?  ebay, and papal have been anti-competitive for years, but this is too monopolistic for me. 

Dear ebay,

Will you please hold my invoice for 21 days?  Can you please loan my company the capital, interest free of course, to purchase and ship inventory? 

I think I'm going to refund the payment, and request the buyer pay MY account.  Otherwise, no dice!  I'm not in the business of interest free loans, and high risk shipping destinations.

Details:

Item: Apple Airport Express
Category: Electronics
Value: $60
Destination: Ecuador

[fourthaxis]

This happened on my GFs paypal account, and I'm stunned.  I'm a "top-seller" (whatever that means), verified, 2003, premeir, blah blah blah, so I've never seen this message before. 

Is it certain categories, certian items, certain shipping destinations?  ebay, and papal have been anti-competitive for years, but this is too monopolistic for me. 

Dear ebay,

Will you please hold my invoice for 21 days?  Can you please loan my company the capital, interest free of course, to purchase and ship inventory? 

I think I'm going to refund the payment, and request the buyer pay MY account.  Otherwise, no dice!  I'm not in the business of interest free loans, and high risk shipping destinations.

Details:

Item: Apple Airport Express
Category: Electronics
Value: $60
Destination: Ecuador

[steveptr]

pay pal is a cash cow that carries all of ebay profitability.just check their latest earnings report to confirm.skype was a bust purchased under meg whitman who now wants to be california gov.have you noticed she is now a billionaire !

stockholders take the pipe again and meg bails with gazillions  great cal governator she would make--huh ? if you cant beat em,get the **bleep** as far from this co as possible.monopoly will fade as the dinosaurs.like our current dem legislators if we all rise in concert in deliberate pitchforking of the thieves. now-lets get to work eradicating the filthy corp governance from this greedy bunch 

[qprincess33]

I wanted to know if PAYMATE has the same policy of Holding funds. Since the site says it upholds buyer protection?

any experiences with PAyMATE?

[5black4]

  Whenever I need a good laugh...I read the listed paypal "hold" policy. They make it sound that a seller getting a hold on their payment from the buyer is sooooooooo rare. This is such BS...I feel it is placed on the site for the buyers.    They look at this statement and think paypal is not so bad..whats the problem with the sellers? The buyers have no idea what the real HOLD policy is..it is NOT MAY Hold... it is WILL Hold and for as long as eBay/paypal want to hold the funds.

 I have my own merchant account and can take VISA & Master Card myself. So I am seeing if the buyers pay this way. and avoid the ill-advised HOLD policy.