We used PayPal for registration for a fundraising bike ride. Without notice they took $18,000 and put it into a minimum reserve, then held 25% of our sales for 180 days in a rolling reserve. I called PP to see what this was all about and what we would need to do to decrease the percentage that they were taking or at least reduce the time that the rolling reserve was held. I was told that due to the nature of our business (an event) that they usually hold 100% until after the event. Not sure how this is possible since everyone requires payment prior to the event! After getting off the phone and getting absolutely nowhere, I logged onto my account and noticed that they had moved an additional $42,000 from the rolling reserve to the minimum reserve without any mention that they were going to do so! Now that the event is over and there is no reason for anyone to be asking for there money back, they still aren't releasing the money. In total, they are holding over $75,000 of our money and to add insult to injury, they are paying a pathetic rate of interest on it. The sad part about this whole thing is that this was a fundraising ride, so this is a huge percentage of our profits that are slated for our beneficiaries and grant program. This is completely unacceptable. The only solution is to cancel our account and guess what, it will be 180 days before we get our entire reserve back. Does anyone have a class action contact?
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