Cannot access the money I have sent him for schooling and daily expenses

[Annoyed31]

PayPal has now disabled 2 of my nephews accounts. I live abroad and pay for his schooling. Both accounts have a significant amount of money in them. PayPal won’t let him access that money nor will it give me back my money so I can make other arrangements to pay his fees and living expenses. The resolution Centre is ridiculous. PayPal is simply stealing the money. does anyone know how to either get PayPal to allow him to withdraw the money from his account or get the money back to me so I can make other arrangements?

[kernowlass]

@Annoyed31 

If paypal limit an account then you can't open another one until any issues have been resolved with the first and the first closed.

Was it a permanent limitation and if so was he over 18 when he opened the account? If not then that would be the reason for a permanent ban.

Any funds in a limited account are held until any issues are resolved OR for 180 days so they are available in the event of any disputes.

Did you send the funds using friends/family or goods/services and is he in the same country as you? 

Hard to give more advice on the scant information you have provided unfortunately.

[Annoyed31]

Funds were sent as family and friends because the school does not accept international transfers or PayPal. It has been past 180 days and PayPal has not returned the funds to me or released them to him. So basically are stealing the money. I am going to lodge a case with the financial ombudsman as the funds should be returned to me or released to him.

[kernowlass]

@Annoyed31 

ok, again as you have not answered hardly any of my questions can't really advise.

[Annoyed31]

I used Family and friends, I am not in the same country and he is under 18 but the account was set up with his parent, what more information is required for a solution to either get the money passed on to him or returned to me?

[kernowlass]

@Annoyed31 

Doesn't matter if his parent consented or not, its against Paypal rules to open an account underage.

May have been better for the parent to set up their own account and you sent the money to that account.

As it was an illegally opened minor account then of course the account will be permanently limited and any funds in it.

After 180 days they may get the chance to open another account once they are 18 and transfer the money across.

The only other option is for him to contact customer services and ask if they will refund the funds back to you.

[Annoyed31]

It was a student account that is specifically for under 18’s. If PayPal are shutting them down it is a blatant grab for money. I will still be lodging a case with the Financial Services ombudsman.

[kernowlass]

@Annoyed31 

Student accounts were only available in the U.S and were stopped years ago.

If you read your countries user agreement you will see that no one can open a paypal account under 18.

https://www.paypal.com/au/webapps/mpp/ua/useragreement-full?locale.x=en_AU

If you are an individual, you must be a resident of Australia and at least 18 years old to open an Australian PayPal account and use the PayPal services.

Good luck with your ombudsman when your nephew broke paypal rules and opened an illegal minor account.

[Annoyed31]

He is in Canada, I am in Australia. The account was set up a few years ago during a phone call to PayPal whilst I was over there and it was set up how were were advised with the support and assistance of PayPal. If they are going to change their rules or their staff are not advising of the correct information in order to shut accounts down and keep the money, that is fraud yes but on PayPal’s behalf not my nephew or mine. I have the emails and will be lodging a complaint with the Financial Services Ombudsman in Australia. We have the proof in emails of what we were advised to do regarding the situation.

[kernowlass]

@Annoyed31 

Students account were stopped in 2016 which is 7 years ago, so if you had permission to open one from customer services your family member must have been 11 at the time???  🤔

If you read the first line of the user agreement in your country it clearly states no one can open OR use a paypal account under 18 and no customer services agent would advise you to do so as there has been no such thing since 2016.