Are Paypal short of money ?

BrandonDavis
Member
Member

Hello

I have very often heard it said on the internet that Paypal refuse to give people their money.

It seems they have a million "excuses" they use to do this.

They have just done it to me.

Do they do this when they are running low on money themselves ?

I hope it is only this - at least i might get my money some day when they get some new money in.

Can anyone explain to me how this works ?

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13 REPLIES 13

robsas1958
Contributor
Contributor

i would also like to know

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BrandonDavis
Member
Member

It seems like their business model depends 100% on holding large amounts of other people's money.

It's similar to how bank's work i suppose.

But bank's let you have your money when you ask for it.

If a bank doesn't give their customers their money when they want it then it means the bank is bust.

Is Paypal like a ponzi scheme do you think ?

Are they using customers money to pay their shareholders dividends ?

What happens when the money runs out ? 

Unlike the bank's Paypal "deposits" is not guaranteed by the government is it ?

So they can just declare bankruptcy and we have all lost all our money.

There is nothing to stop that happening is there ?

Does anyone know anything about this ?

Does anyone know if Paypal are going bust at the moment ?

 

 

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Brandon-P
Frequent Contributor
Frequent Contributor

@BrandonDavis wrote:

Hello

I have very often heard it said on the internet that Paypal refuse to give people their money.

It seems they have a million "excuses" they use to do this.

They have just done it to me.

Do they do this when they are running low on money themselves ?

I hope it is only this - at least i might get my money some day when they get some new money in.

Can anyone explain to me how this works ?


Hi @BrandonDavis

 

When you open a UK PayPal account, they only ask you for the essential information so you can start using your account straight away. In compliance with the regulatory requirements in your country, they need to confirm your personal and/or business identity.

 

These requirements are fulfilled automatically, where possible. In some cases, PayPal may require documentation to verify your identity or clarification on certain account activity. When such is required, a limitation is placed on your account until the requested information is received and validated.

 

In order to protect the PayPal community and comply with various financial regulations, there are certain restrictions placed during an account limitation. The most common are:

 

- Prohibited removal of a linked payment method.

 

- Prohibited access to funds in your account balance.

 

- Prohibited amendments to certain account information.

 

If PayPal receive the documentation required to resolve the case, there is no issue with restoration of your full account access. When there is a problem identified, there could be a further request for documents or in some cases, a permanent limitation of your account.

 

If a limitation is indefinite, funds are automatically released 180 days from the point of notification. PayPal will never permanently revoke access to your money, unless there is the involvement of law enforcement or are otherwise prohibited by law.

 

Account limitations are never placed in response to PayPal's financial state. It can be frustrating to have restricted access to your funds, however these procedures are in place for your protection, in addition to the rest of the PayPal community.

 

If you have any further questions on this topic, please feel free to ask me.

 

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BrandonDavis
Member
Member

Actually you are totally wrong.

The amount involved is about the cost of a McDonalds family meal !!!

So it's not because of the amount of money involved - is it now ?

And the account has been opened a number of years - so it's not because it is a new account - is it now ?

You say "Account limitations are never placed in response to PayPal's financial state" ...

But let's face it - apart from Paypal's financial state - what other reason could there be ?

I bet you can't come up with a realistic answer ...

But feel free to try ....

 

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BrandonDavis
Member
Member

By the way i am a Journalist so i know how these things work ...

Lot's of big companies go bust ...

And lot's of customers loose all their money ...

I look forward to your alternative theories on why Paypal can't pay out at the moment ...

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Brandon-P
Frequent Contributor
Frequent Contributor

@BrandonDavis wrote:

Actually you are totally wrong.

The amount involved is about the cost of a McDonalds family meal !!!

So it's not because of the amount of money involved - is it now ?

And the account has been opened a number of years - so it's not because it is a new account - is it now ?

You say "Account limitations are never placed in response to PayPal's financial state" ...

But let's face it - apart from Paypal's financial state - what other reason could there be ?

I bet you can't come up with a realistic answer ...

But feel free to try ....

 


Hi @BrandonDavis,

 

I sense the passion in your response, therefore I will provide a response to each point.

 

1. The amount of funds on your account is not relevant. An account limitation can be placed with £0.00 available or £1000.00 available. The decision for PayPal to restrict an account is based on compliance purposes, rather than how much is in your PayPal balance at the time of review.

 

2. An account limitation is not reserved for new customers. Someone who has used their PayPal account for 10 years could receive the same limitation as someone who has used PayPal for 10 months.

 

3. PayPal will never limit an account without a valid reason. Out of the millions of PayPal customers worldwide, only a small percentage are limited at one time. Whilst most limitations are resolved with amicable co-operation, others may become permanent if such is not demonstrated by the account holder.

 

I appreciate that you may have been limited, but this was not in response to PayPal's current financial state. Limitations are never placed at random on a customer's PayPal account and is solely decided based on unbiased risk analysis and their duty to comply with Know Your Customer regulations.

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BrandonDavis
Member
Member

You say that it is because after all these years Paypal don'y know me well enough !!!

Has the legality of Paypal refusing to give clients their own money ever been tested in a UK small claims court ?

Maybe you know the answer to that question ?

I think it is time it was fully tested for the Public benefit ....

In the UK small claims court each party pays their own costs ...

So it is very quick and easy to do ...

I know Paypal have been fined 25 million dollars before for deceiving their customers ...

So are you really sure Paypal aren't just low on funds at the moment ?

How do you know ?

It just looks like excuses to as you say hold on to a percentage of their customers money at any one time ...

Would i be right is saying that the total amount of money they refuse to give back is actually a vast sum ?

I think you KNOW i am right about that - don't you ?

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BrandonDavis
Member
Member

As a Journalist i would find it VERY interesting to find out the TOTAL amount that Paypal refuse to give their clients back ...

The interesting thing about a UK small claims court is that the Court will order Paypal to declare that amount in open court ...

Maybe you can tell me that amount now ?

I doubt very much Paypal will allow you to do that ...

I think the Public will be shocked when they find out the total ...

Don't you ?

The Court fee in the UK small claims court is only 30 pound ...

Any reason i shouldn't fill the form in online tomorrow and lodge the case ?

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Brandon-P
Frequent Contributor
Frequent Contributor

@BrandonDavis wrote:

You say that it is because after all these years Paypal don'y know me well enough !!!

Has the legality of Paypal refusing to give clients their own money ever been tested in a UK small claims court ?

Maybe you know the answer to that question ?

I think it is time it was fully tested for the Public benefit ....

In the UK small claims court each party pays their own costs ...

So it is very quick and easy to do ...

I know Paypal have been fined 25 million dollars before for deceiving their customers ...

So are you really sure Paypal aren't just low on funds at the moment ?

How do you know ?

It just looks like excuses to as you say hold on to a percentage of their customers money at any one time ...

Would i be right is saying that the total amount of money they refuse to give back is actually a vast sum ?

I think you KNOW i am right about that - don't you ?


Hi @BrandonDavis

 

I have not estimated the reason or purpose of your account limitation. However, the information I have provided to you is accurate and based on the current procedure, in accordance with the User Agreement.

 

I am not in a position to comment on or discuss any legal concerns here.

 

I would advise resolution of your account limitation, to restore access to your funds. PayPal do not withhold funds once an account limitation is resolved unless the appeal is refused. In such a case, funds are held for 6 months, to ensure that the account holder remains committed to any previous sales and will co-operate with PayPal should any dispute case arise.

 

For a final reminder; PayPal operate the limitation process as a risk-based and compliance-based mechanism. There is no undisclosed practice or intentional revoke of account access or access to funds, unless there is a valid reason to do so.

 

With co-operation from the customer, limitations can be resolved within a matter of hours. With resistance to PayPal's procedure, this process can take considerably and unnecessarily longer, which in turn extends the period of time that you are restricted access to your funds.

 

When you opened a PayPal account, you accepted:

 

 

Once accepted, your account is handled in accordance with such. I can confirm that account limitations; transactional holds and other related actions are taken in compliance with PayPal's policies, the financial regulations in your country and overall protection of the PayPal community.

 

I do appreciate your comments on this topic, however I cannot further respond to you now. If you have any questions or concerns regarding your specific account limitation, please click here to contact PayPal Customer Service.

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