Hi Insolent!
You are far from alone in your disgust with the hold policy.
I've offered my two cents in various posts in this forum. Feel free to review them.
The sad reality is PayBay will do what they want with impunity simply due to their size and virtual monopoly in the market sector. They say there is nothing illegal about the operation of the policy...so of course that proves its legality!
Further as to my own experience, PP holds funds beyond three days post verified delivery seemingly at its own discretion. I pressed them for a reason for a hold on one account 8 days post verified delivery (I thought being specific as to one uniquely numbered transaction would help them focus). This is simply requesting they explain their own policy. They refuse to (translation: the lap-dogs are forbidden to) offer a reason.
If they can't or won't fully and clearly explain a severely detrimental policy...one the full scope and operation of which is hardly disclosed in the agreement, then how can it be enforceable?
So what do do...?
Legal challenge is expensive for the nominal damages involved and PP knows this.
But...if funds are held beyond that implied in policy and for no articulated reason (at least none they will disclose) and it causes additional monetary harm...the proceeds have been devalued by the time you get them back...for whatever reason. It seems to fit nicely into the definition of conversion. Of course PP knows if you want to mount a legal challenge at huge costs to recover a couple of dollars, have at it. Bigger challenges they will settle with no admission of wrong-doing.
The agreement itself is misleading at best.
The operation of the policy can cause multiple burdens.
It exists, so says PP, because new/infrequent sellers are presumed dishonest or high risk...so the new seller must fund the 'buyer protection' given to the buyer. [Actually, I've discussed this with several of my buyers who were insulted upon learning that PP had held their funds. They thought the operation of the policy gave the impression that they, the buyer, did something underhanded. They assumed the funds had transferred immediately].
There has been a class action initiated, but it would seem the plaintiffs are bigger players than the casual, private seller.
I suggest writing your state representatives (of course, once you have a good letter, send it to anyone you think might have some sort of oversight). Follow up (often) with phone calls. Tell them the specific harm to you, the general harm to their constituents and the potential tragic harm the operation of the policy can have.
Pester them. An attack at the state level by us 'small guys' might convince state legislatures to review PPs business practices and consider whether the state really wants to license them to operate in their state given the polilcy.
Don't buy from merchants using PP. Ask them if there is an alternative payment method. If not, then nicely explain why you won't trade with them.
Talk. Write. Phone. EMail. Pester. Be professional but be indignant.
Any explanations you get here will give you little comfort. Unfortunately, part of the gig of 'advising' is playing lap-dog to such an underhanded policy, so don't be too hard on them.
Hope this helps a little.
Good luck.
