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    • les0863
    • By les0863 6th Oct 17, 2:30 PM
    • 6Posts
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    les0863
    paypal limitation
    • #1
    • 6th Oct 17, 2:30 PM
    paypal limitation 6th Oct 17 at 2:30 PM
    please help. paypal have limited my account and not allowing me to withdraw any of balance as my son has his own personal account with them and owes them money - a lot less than what they are holding of mine. can they do this ? I don't own them anything.
    many thanks, all help greatly appreciated and apologies if in wrong 'thing' new to this and only just joined form,
Page 1
    • theonlywayisup
    • By theonlywayisup 6th Oct 17, 2:32 PM
    • 11,420 Posts
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    theonlywayisup
    • #2
    • 6th Oct 17, 2:32 PM
    • #2
    • 6th Oct 17, 2:32 PM
    Paypal limit any linked account when there are issues. How much does your son owe them?
    • les0863
    • By les0863 6th Oct 17, 3:55 PM
    • 6 Posts
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    les0863
    • #3
    • 6th Oct 17, 3:55 PM
    • #3
    • 6th Oct 17, 3:55 PM
    approx. £1200. I don't understand how they can hold MY money for somebody elses debt ?!
    they are only linked in so much that same address - I've not guaranteed his account
    Last edited by les0863; 06-10-2017 at 4:17 PM. Reason: added more
    • soolin
    • By soolin 6th Oct 17, 4:17 PM
    • 59,578 Posts
    • 42,280 Thanks
    soolin
    • #4
    • 6th Oct 17, 4:17 PM
    • #4
    • 6th Oct 17, 4:17 PM
    approx. £1200. I don't understand how they can hold MY money for somebody elses debt ?!
    Originally posted by les0863
    Paypal routinely link accounts as they assume (often wrongly) that when someone has an issue they merely open another account in a relatives name and use that instead. Unfortunately it means that your account is basically being held hostage pending your son sorting his debt out.

    The simplest way to deal with this is for your son to clear his debt and for you to then phone paypal and demand your balance be released. You may find that your account will be closed if paypal deem it unsafe to continue but if you can get your funds released you can get the rest sorted out later.
    I'm the Board Guide for the Ebay Board , Charities Board , Dosh & Disability , Up Your Income and the Local MoneySaving-England board which means I volunteer to help get your forum questions answered and keep the forum running smoothly. However, do remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com
    New to Forum? Guide
    • theonlywayisup
    • By theonlywayisup 6th Oct 17, 5:41 PM
    • 11,420 Posts
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    theonlywayisup
    • #5
    • 6th Oct 17, 5:41 PM
    • #5
    • 6th Oct 17, 5:41 PM
    As above.

    Do you know the situation your son got into a negative balance? It may be something people here can help resolve. Without resolving his negative balance you won't get your funds for a long time (180 days) if at all.
    • powerful_Rogue
    • By powerful_Rogue 6th Oct 17, 5:43 PM
    • 3,317 Posts
    • 4,829 Thanks
    powerful_Rogue
    • #6
    • 6th Oct 17, 5:43 PM
    • #6
    • 6th Oct 17, 5:43 PM
    Good on PayPal, I like this approach.

    This means that you will also be putting on pressure for your son to settle his debts.
    • Ectophile
    • By Ectophile 6th Oct 17, 6:09 PM
    • 2,822 Posts
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    Ectophile
    • #7
    • 6th Oct 17, 6:09 PM
    • #7
    • 6th Oct 17, 6:09 PM
    approx. £1200. I don't understand how they can hold MY money for somebody elses debt ?!
    they are only linked in so much that same address - I've not guaranteed his account
    Originally posted by les0863
    They can do it because they are PayPal, and that's what PayPal does.

    If you threaten them with legal action to recover your money, and carry through that threat, then you will almost certainly get your money back. But you may find your account closed permanently.
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
    • les0863
    • By les0863 6th Oct 17, 8:19 PM
    • 6 Posts
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    les0863
    • #8
    • 6th Oct 17, 8:19 PM
    • #8
    • 6th Oct 17, 8:19 PM
    powerful - don't make assumptions til you know the full facts. to assume makes an !!!.....etc.
    Last edited by les0863; 06-10-2017 at 8:20 PM. Reason: update
    • les0863
    • By les0863 6th Oct 17, 8:23 PM
    • 6 Posts
    • 0 Thanks
    les0863
    • #9
    • 6th Oct 17, 8:23 PM
    • #9
    • 6th Oct 17, 8:23 PM
    its been over 180 days. my sons negative balance - which he doesn't have funds to clear, was due to him being scammed and paypal and ebay refusing to accept the dispute - I realise this sounds lame, but he was professionally scammed and naïve. bottom line, he doesn't have funds
    • les0863
    • By les0863 6th Oct 17, 8:24 PM
    • 6 Posts
    • 0 Thanks
    les0863
    surely they have to abide by UK banking regs and laws ? if so - they cant do it.
    plus my account was opened long before his was
    Last edited by les0863; 06-10-2017 at 8:26 PM. Reason: addition
    • powerful_Rogue
    • By powerful_Rogue 6th Oct 17, 8:28 PM
    • 3,317 Posts
    • 4,829 Thanks
    powerful_Rogue
    powerful - don't make assumptions til you know the full facts. to assume makes an !!!.....etc.
    Originally posted by les0863
    So you post that he was scammed out of the money many posts below your original post - Why not post this in your original post?

    Paypal is not a bank so not regulated like them.
    • les0863
    • By les0863 6th Oct 17, 8:34 PM
    • 6 Posts
    • 0 Thanks
    les0863
    why is the fact he was scammed relevant ? they are not a bank but surely must comply to regulations - how can they withhold funds relating to a 3rd party ? they must be governed by something .... they provide credit and would therefore thought must comply to UK regs in order to get a licence ? I don't know, that's why i'm here, but doesn't seem right
    • powerful_Rogue
    • By powerful_Rogue 6th Oct 17, 8:41 PM
    • 3,317 Posts
    • 4,829 Thanks
    powerful_Rogue
    why is the fact he was scammed relevant ? they are not a bank but surely must comply to regulations - how can they withhold funds relating to a 3rd party ? they must be governed by something .... they provide credit and would therefore thought must comply to UK regs in order to get a licence ? I don't know, that's why i'm here, but doesn't seem right
    Originally posted by les0863
    Because in your first post you made it sound like he was £1200 in debt with paypal due to his own accord and made no mention of the scamming.

    I'm out, but before I go, have a look at this to help.

    https://www.gov.uk/government/consultations/designation-of-payment-systems-for-regulation-by-the-payment-systems-regulator/designation-of-payment-systems-for-regulation-by-the-payment-systems-regulator
    • stuartJo1989
    • By stuartJo1989 6th Oct 17, 9:26 PM
    • 287 Posts
    • 280 Thanks
    stuartJo1989
    not allowing me to withdraw any of balance as my son has his own personal account with them and owes them money - a lot less than what they are holding of mine
    Originally posted by les0863
    Ah ok, so you have enough money to cover a £1200 debt then?

    Why don't you speak to Paypal and request that they take the debt from your own personal account? Then get your son to pay you back x amount per month?

    That's what normal parents do in a situation like this, more so if your son was scammed (which must be fairly distressing for him, no?). He surely needs his dad to come to his aid? And to maybe give him a clap round the ear about being more streetwise when it comes to scams? We all make mistakes like, but £1200 is a lot of money and you have to be CAREFUL!

    Besides, why are you even using Paypal?? I hate them! It is a scammers paradise and is nothing like a good old bank account/debit/credit card.

    You should probably also contact the police and report a crime, though they may not be too interested. Your son may also find some sort of recourse in following Paypal's Ts and Cs in relation to fraud, and those of any third party he used (ebay? etc).
    • Hermione Granger
    • By Hermione Granger 6th Oct 17, 10:18 PM
    • 791 Posts
    • 1,227 Thanks
    Hermione Granger
    Paypal is not a bank so not regulated like them.
    Originally posted by powerful_Rogue
    Paypal are a bank, just not a UK bank.
    They obtained their banking licence in 2007 (issued by the Luxembourg banking authority) and once they became an overseas based bank, they fell outside of the remit of the UK's Financial services authority and instead are regulated by the Luxembourg banking commission.


    surely they have to abide by UK banking regs and laws ? if so - they cant do it.
    Originally posted by les0863
    If they were UK based then yes, they would have to follow UK banking regulations but this isn't the case.
    I've no idea of what Luxembourg law states on this but with a good bit of Googling you may be able to find out.
    • maninthestreet
    • By maninthestreet 7th Oct 17, 11:26 AM
    • 15,155 Posts
    • 13,582 Thanks
    maninthestreet
    http://www.paypalsucks.com/view_story.php?name=paypal-uk-phone-number
    "You were only supposed to blow the bl**dy doors off!!"
    • bris
    • By bris 7th Oct 17, 11:33 AM
    • 7,094 Posts
    • 6,110 Thanks
    bris
    Once this is sorted one way or another your account will be closed. Whether it's linked or not they do not give second chances and the whole household suffers.


    Guilty by association, they know most people try to get round it by using other peoples accounts and 99% of the time they are right because not having a Payplay account to use causes a hell of a lot of buying and selling problems.
    • sheramber
    • By sheramber 7th Oct 17, 4:00 PM
    • 3,977 Posts
    • 2,956 Thanks
    sheramber
    why is the fact he was scammed relevant ? they are not a bank but surely must comply to regulations - how can they withhold funds relating to a 3rd party ? they must be governed by something .... they provide credit and would therefore thought must comply to UK regs in order to get a licence ? I don't know, that's why i'm here, but doesn't seem right
    Originally posted by les0863
    https://www.paypal.com/uk/webapps/mpp/ua/useragreement-full?locale.x=en_GB

    1.1 PayPal is only a Payment Service Provider. PayPal (Europe) S.à r.l. et Cie, S.C.A. (R.C.S. Luxembourg B 118 349) is duly licensed as a Luxembourg credit institution in the sense of Article 2 of the law of 5 April 1993 on the financial sector as amended (the “Law”) and is under the prudential supervision of the Luxembourg supervisory authority, the Commission de Surveillance du Secteur Financier.

    PayPal’s main business is the issuance of E-money and the provision of services closely related to the issuance of E-money. A description of the main characteristics of the PayPal Service is set out in the Key Payment and Service Information document which is accessible via the Legal Agreements link of each page of the PayPal website(s). Since the service is limited to E-money, which does not qualify as a deposit or an investment under Luxembourg law, you are not protected by the Luxembourg deposit guarantee or investor indemnity schemes administered by the Conseil de protection des d!posants et des investisseurs. PayPal enables you to make payments to and accept payments from third parties. PayPal is an independent contractor for all purposes.


    14.1 Contact PayPal First. If a dispute arises between you and PayPal, our goal is to learn about and address your concerns and, if we are unable to do so to your satisfaction, to provide you with a neutral and cost effective means of resolving the dispute quickly. Disputes between you and PayPal regarding our Services may be reported to Customer Service online via the "Email Us" link on the "Contact Us" page at any time, or by calling the Customer Service telephone number located on the PayPal website(s) and by logging into your Account.

    14.2 ECC-Net, Financial Ombudsman Service and CSSF. If you have a complaint to make about us, you may choose to escalate it by contacting one of the following:

    European Consumer Centre (ECC-Net). You may obtain further information regarding the ECC-Net and how to contact them at (http://ec.europa.eu/consumers/redress_cons/).
    UK Financial Ombudsman Service (FOS). For UK resident Users only - the FOS is a free, independent service which might be able to settle a complaint between you and us. You may obtain further information regarding the FOS and contact the FOS at http://www.financial-ombudsman.org.uk.
    Commission de Surveillance du Secteur Financier (CSSF). The CSSF is the authority responsible for the prudential supervision of companies in the financial sector in Luxembourg. You can contact the CSSF at 283 Route d’Arlon, L-1150 Luxembourg. You may obtain further information regarding the CSSF and how to contact them at: http://www.cssf.lu.
    • Gavin83
    • By Gavin83 7th Oct 17, 11:37 PM
    • 4,721 Posts
    • 7,500 Thanks
    Gavin83
    How much do you have in your account? I never keep too much in there purely for this reason. Sometimes they don't even have a reason for locking someone's account and once it's locked it's rarely unlocked.

    The account is gone, you just need the money back. Ask them when they're planning on returning your funds and make it clear the other debt isn't yours. If they don't give a satisfactory answer send a LBA.
    • JReacher1
    • By JReacher1 8th Oct 17, 8:47 AM
    • 2,633 Posts
    • 3,647 Thanks
    JReacher1
    How much do you have in your account? I never keep too much in there purely for this reason. Sometimes they don't even have a reason for locking someone's account and once it's locked it's rarely unlocked.

    The account is gone, you just need the money back. Ask them when they're planning on returning your funds and make it clear the other debt isn't yours. If they don't give a satisfactory answer send a LBA.
    Originally posted by Gavin83
    A LBA will have no effect on a company the size of PayPal.
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