PayPal working capital DENIED !!

Kb-2613
Contributor
Contributor

I payed my first loan off on 3/2/2018 . I applied for my second loan 3 days later . I was denied for these following reasons . You’ll receive a letter providing the principal reasons why your application was declined, which includes the following reasons: Your account was recently been restricted due to PayPal Acceptable Use Policy violations You’ve had a negative balance You’ve had unacceptable losses or refunds due to claims or disputes Your account has been identified with suspected account takeover or other fraudulent activity . Has anyone else has this issue an was denied ? Did anyone get approve afterwards an how long does it take for this crap to drop off ??

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19 REPLIES 19

tlwaljerlifepoe
Contributor
Contributor
Me too! I have had 3 all of which were paid off early. Go apply for my 4th loan and got denied! Highly upset. 1st loan 3500.00 Paid off early. 2nd loan 7500.00 Paid off early. 3rd loan 2500.00 Paid off early. My 3rd loan was lower than my 1st and 3rd loan which did not make any sense. All loans paid off. Like you I did not have a error code. I did at one point had a net negative in my balance. I rectified that. This only happened one time because of circumstances Beyond My Control at the time. Regardless, I've always had money in my account and sales which have always been good. So that is the only thing that I can think of would be the negative that I did have at one point. But like I said I rectified it. I am just going to keep reapplying. But what gets me is that my third loan was lower than my first and second one which made no sense to me at all. If anything it should have been higher than my second one. I have never had a problem paying back my loan at all in fact I've always paid it back early. I really think PayPal should look more at the loans being paid on time and early than anything else. But that's just my personal opinion.
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BINNAH
Member
Member

It is completely ridiculous. Sure, it’s their money, but we pay a fee to use their service and for borrowing their money. The fact that a computer makes the decision is what’s scary, so really no rhyme or reason to it. I paid off both my loans early , had no chargebacks, but may have had a negative balance, but why should this matter? It’s not a bank account, it’s a service.. when I relayed my last loan EARLY, my record was clear and sales were good, paying them back early was a BUG mistake, and is bad of the company to encourage it. These machine algorithms are a JOKE, as why should you be penalised for a dispute that may have been a postal problem, or something else out of your hands, because of this crap, I will be happy to move to the next company that provides a gateway and a FAIR loan service.. I think it must be a big shock for everyone who repays their loan early, way earlier than projected, to then be rejected. That’s **bleep**. Not Fair, and PayPal should be ashamed of themselves for such a shonky inconsistent service.

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BINNAH
Member
Member

Both loans EARLY, months earlier than projected. Yes, it’s their money, but they take it out of your sales and you feel it. Basically, it is just NOT A FAIR SYSTEM. Rewards for early payment is fair. Judging on conditions, not on a bleep from one disgruntled customer or for making a huge purchase and draining your account. It literally SUCKS. 

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eric1236
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Contributor
I completely agree. I’m thinking of going back to square full time. I heard good things about PayPal, but now I’m completely frustrated. The algorithms should care about one thing and one thing only. Do we pay the money back? The answer is yes with me. I’ve had two loans and paid them back way ahead of time. I just got turned down for my 3rd loan. They said it was because I had fluctuation in sales, but the fluctuation was in the upswing. I was processing more through PayPal. You’d think if PayPal actually took the time to read these reviews and we’re all clients, they’d see that they have frustrated, loyal people trying to do the right thing
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jj717
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Mine was just denied due to funds on hold. Was yours ever approved again ? I need this loan!
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Kb-2613
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Contributor
No I was told my business isn’t eligible for it. I didn’t make enough money this time
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Danay82
Member
Member
My 3rd one was denied due to a "funds on hold" reason, but it was only this one time funds were on hold and PayPal put it on hold due to the amount being "very high" they said. So I myself had no control over PayPal system for making that decision due to their customer support saying "it's for my protection" but in the end it hurts me more than protecting me (cant access those funds due to a hold and get rejected on another loan I paid off early due to them holding funds). Something has changed in their system and I feel like its hurting their customers more than helping.
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Bamabots
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Contributor

That is what happened to me.  I got a $85,000 loan to buy out Happy Valley Ranch Cider Presses.  As expected, my sales took off.  So PP put a 7-day hold after certain monthly levels of sales. 

 

Now, they put a hold for 7-days, but PPWC took their 15% out immediately which caused a negative cash flow.  It didn't cause a negative balance because we had large cash reserves.  But we did have to be careful of parts we were buying toward the end of the month.

 

Nevertheless, we paid off the $85,000 in 248 days.

 

So, we got a PPWC loan to increase sales.  We increased sales so PP put a hold on immediate access to our funds which didn't cause us any financial distress on top of PPWC causing a negative cash flow.  Yet, we were denied another loan because we took full advantage of the loan that cause sales to explode.

 

PP has now taken off the monthly limits but PPWC still denies us another advance.

 

The thing is PPWC has direct access to our account yet they charge fees that would shame a loan shark.  Frankly, I don't mind the fees because it is cheaper than bringing in a partner.

 

PPWC appears to be doing fine without us and we're doing fine without them so I guess we all live happily ever after.

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robingailepp00
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Contributor
My loan too 1st loan $2,500 paid off early. 2nd loan $17,500 paid off early 3rd loan got denied a mth finally got $3,500 my 4th loan is almost paid for. Scared during this covid they aren't going to approve a new loan. I was told my sales flucuated and had a decrease from a chart compairing rhe mths in the time of the other loan. Sales cant be made if you cant buy to product to run the business. I cant sell say a pizza without the supplies to get it. And then was told I had a refund. That's not my fault the guy bought 2 things and he only wanted to buy 1 so I had to do a partial refund. Then I had 1 open case that a customer lied he didnt authorize that charge. Ive had to block him from every acct because he gets the product then claims he didnt authorize that purchase. So he got my product and a refund from PayPal and I got the bad report on me.and then a open case because the postal system lost the package he opened a case it was later delivered. But its not fair thats what they go by. If i borrow it and I make it paid back ahead of time. It makes no sense. I made 125,000 when I got the 17,500 then I only got 3,500 cause i made 90,000 made no sense at all. Gotta have money to make money. They should have some sort of exceptions for during this pandemic. Businesses are going to cave in because of these silly rules they generate.
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Richyb123uk
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Contributor
PayPal made me go bust . Avoid this system unless you have other cash cows.
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