Funds taken from account by paypal

[anette1969]

I had a 180 day hold put on my account 4 months prior to selling my flower business. Paypal claimed my tobacco products violated their policy even though I got permission in 2016 to sell them on my website. To cut the story short I sold my business and Paypal took $1400 held in my account and refuse to give it back. I am in the process of filing through small claims as the money taken was from my flower sales and selling tobacco.

Anyone had filed a small claim against Paypal yet?

[kernowlass]

@anette1969 

You can't get permission to sell something that is prohibited by Paypals acceptable use policy as per link unfortunately.

https://www.paypal.com/us/webapps/mpp/ua/acceptableuse-full?locale.x=en_US

So as they banned you for breaking that policy then under their user agreement they have the right to seek damages as per link.

https://www.paypal.com/us/webapps/mpp/ua/useragreement-full?locale.x=en_US#restricted-activities

• Take legal action against you;
• If you’ve violated our Acceptable Use Policy, then you’re also responsible for damages to PayPal caused by your violation of this policy; or
• If you are a seller and receive funds for transactions that violate the Acceptable Use Policy, then in addition to being subject to the above actions you will be liable to PayPal for the amount of PayPal’s damages caused by your violation of the Acceptable Use Policy. You acknowledge and agree that $2,500.00 U.S. dollars per violation of the Acceptable Use Policy is presently a reasonable minimum estimate of PayPal’s actual damages - including, but not limited to, internal administrative costs incurred by PayPal to monitor and track violations, damage to PayPal’s brand and reputation, and penalties imposed upon PayPal by its business partners resulting from a user’s violation - considering all currently existing circumstances, including the relationship of the sum to the range of harm to PayPal that reasonably could be anticipated because, due to the nature of the violations of the Acceptable Use Policy, actual damages would be impractical or extremely difficult to calculate. PayPal may deduct such damages directly from any existing balance in any PayPal account you control.

So I would check everything first before going down the legal route as Paypals user agreement and acceptable use policy has been legally agreed in every country that they operate in so you 'may' be throwing good money after bad.

[anette1969]

Thank you for the response. They permitted me to sell tobacco products (gift item) in 2016 by 2021 the same product was in violation of their policy? In any case none of the transactions were for tobacco products all the sale was for flowers so makes no sense to take money when I sold no tobacco products through Paypal.