Is it legal for PayPal to keep an account open?

[Hadji828]

If my account is limited and I try to close it, can PayPal legally keep it open while my credit card is linked to it?

[sharpiemarker]

@Hadji828 

A limited account is generally a blocked account unless you the account holder resolve the limitation first then to close it like you would an account in good standing.

Even if an account is closed or limited there are reasons PayPal keeps certain info, like collecting debts, resolve disputes, comply with regulations, combat/prevent fraud, fix account issues, conduct investigations, enforce the user agreement and as the law allow it.

See the privacy policy for more info:

https://www.paypal.com/webapps/mpp/ua/privacy-full

[Hadji828]

I appreciate your answer. My problem stems from trying to update a new card from my bank and being unable to do it. At first, I didn't realize that my bank wanted to okay it before it went through (I had no such problem the first time I linked one of their cards to PayPal). Since I tried to do it without my bank's okay (unknowingly), PayPal couldn't process it and thought somebody was trying to commit fraud. PayPal could have sent me a text, email or some kind of message letting me know that something was peculiar about my account at that time. They didn't. They could have sent a message to my bank letting them know that somebody was trying to use one of their cards in a suspicious manner. They didn't. Instead, they locked my account (they say they are "limiting" the account, but let's call it what it really is). In order to use the account again, they want me to send a copy of my state-issued photo ID/license and a card statement from my bank with my name on it (2 statements, actually, since I had two cards from two separate banks on my PayPal account). To me, that is a lot of sensitive information to be sending out over the internet to people I have never met. I talked to my banks about the situation; neither of them have heard about such a thing happening and both recommended not sending out that kind of information-- confirming what I was already thinking. As I said, one card would not go through to my Paypal account, but I still had another card linked to Paypal. I decided to go to that second card's bank and had them "kill" that card before issuing me a new one with all new numbers; this way, PayPal has no access to that bank account. PayPal can "limit" my account all they want; the account is useless to both of us, now. If they want to come up with a better way that feels safer to me of letting them know that it is actually me trying to make changes to my account, I will consider keeping an account with them. Until then, I am going to utilize other methods of doing online purchases.

[PayPal_Siobhan2]

Hi Hadji828, 

Thank you for contacting the PayPal Community Forum, and welcome as a new member! 

Limitations are a standard part of using PayPal, and you will be required to provide the information requested to resolve the account issue. As a Regulated financial institution, PayPal is required to obtain this information, and it is stated within the User Agreement. When you open an account with your bank, they will require a valid photo ID, and proof of address before completing the account creation. PayPal is the same, however, online regulations do not require this information upon account set-up, and it is requested along the lifetime cycle of the PayPal account. All information provided is encrypted, and is not provided to a third party. I appreciate your bank are not aware of PayPal's process, and have advised you not to provide the documentation required. Unfortunately, this will mean the account will remain limited, and you will need to use an alternative payment provider going forward. 

- Siobhan