After reading all of the posts and seeing what people now have to go through to get their money, I wrote a letter, on behalf of the millions of Ebay seller, to Eric Holden, US Attorney General. I am including the letter for all to read.
Office of the Attorney General
U.S. Department of Justice
950 Pennsylvania Avenue , NW
Washington, D.C. 20530-0001
Dear Mr. Eric Holder:
As more and more people are affected by the financial collapse of this country, loss of jobs running rampant, the unemployment rate exceeding 10%, many of these people are turning to alternative ways to make money to sustain their families. Many people are trying to sell unwanted items on Ebay, the online auction giant.
Ebay requires payments be made through Paypal, a company owned by Ebay. Unfortunately, Paypal has recently instituted a 21 day hold on all payments received through them for Ebay sales. Although Paypal pays themselves the fees owed to them immediately, they hold all other funds until (1) feedback is received by Ebay – you have to tell Ebay that feedback has been received, or (2) 21 days have passed with no issues.
Payments received by Paypal include shipping costs required to mail items to purchasers. Most people don't have these funds just laying around doing nothing. In order to ship the item, they need the money. If they can't ship until the funds are released, they run the risk of losing the sale altogether.
I know, personally, one individual who lives on disability payments of less than $700 per month. Trying to make ends meet, he sells on Ebay. Most of his items sell quickly, but in order to mail the items, he must borrow the shipping costs from friends and family. This doesn't seem quite fair.
Let's suppose you buy a car. Are you permitted to take the car unless payment has been made to the dealership? No. Suppose you go to Sears and buy a washer and dryer. Will they deliver it to you without payment? No. When you buy online, do you first have to pay for the item before they will ship it out? Yes. There is nowhere in this world where you can walk out of a store with item in hand unless the store has been paid. Yet, Paypal and Ebay have placed themselves above all others and say, the seller does not get paid until the item is received and there are no complaints.
I don't see how, legally, Ebay and Paypal can do this. I am writing this letter to you on behalf of the millions of sellers on Ebay each and every day, who try to make a living, yet are denied that right.
As the Attorney General for the United States of America, I certainly hope that you can check into the legalities of these actions. I know Ebay and Paypal have probably found some loopholes and are working within those loopholes, but it's time those loopholes are closed for good.
When a person sells something, they need to be paid for that item. Before they ship an item, they need to be paid for it. A seller on Ebay should not have to relinquish their rights, just to sell. They are not paid interest for the 21 days that Paypal holds their monies, which is, in itself, extremely unjust. Since when can Paypal proclaim themselves hallway monitor?
This needs to be investigated. This is as urgent as any other financial institution's underhanded tactics. It needs to be dealt with immediately.
