I had a similar experience with Paypal in the past - I had an account with funds in it, and a number of subscriptions active, and had been making & receiving payments without issue - until... Paypal demanded either access to my bank account or that i set up a exorbitantly high interest rate line of credit through GE Money - I was and still am reluctant to give a unregulated financial institutions access to withdraw funds from my account, so i opted to do the Line of credit with no intention of using (you can better terms for your local loan shark). Time came to make a payment to the hosting service I used, I had set the preferences to ALWAYS use the account balance to pay bills - yet when I tried to pay this bill Paypal shifted the payment to the high interest line of credit - I went through the arbitration process, and the only thing they kept asking was did I recognize the charge.. (duh obviously I did and I didn't lie about it) as soon as I said this is my hosting company they refused to reverse the charge, locked my account out and cancelled every one of the subscriptions. The real kicker is - they cancelled the payment to my hosting company, but refused to remove the charge from the line of credit - so basically they stole my money, made my account useless, cancelled my hosting and all of my subscriptions - and still expected me to pay back the line of credit, even though the charge was reversed. I called every number I could find for paypal, I went through every dispute process available - only for them to ignore the issue of the misdirected charge and insist that because i recognized the charge that they would do NOTHING - and of course I was still left on the hook for 500+ dollars. I refused to pay it, paypal locked my account, stole the remaining funds and reported it on my credit. All in all, this episode cost me the business, close to 1100 bucks and a ding on my credit score. If there were ANY other way to handle credit cards that most reseller sites use - I would dump Paypal like the lying, thieving scumbags they are.
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