1000's of users locked out of PayPal - their money is stuck!

R0BINH00D · 19 November 2008 at 9:13PM

Please think twice if you need to withdraw money from PayPal as 1000's of users are being locked out of PayPal this christmas.

Due to "technical reasons" many frustrated users are being locked out of PayPal, unable to withdraw their own money.

See http://www.paypaldeveloper.com/pdn/board/message?board.id=uk&thread.id=1328&view=by_date_ascending&page=1

See http://www.google.co.uk/search?hl=en&client=firefox-a&rls=org.mozilla%3Aen-GB%3Aofficial&hs=NrY&q=Sorry%2C+an+error+occurred+after+you+clicked+the+last+link&btnG=Search&meta=

garibaldi8 · 19 November 2008 at 9:34PM

I had a major clear out a couple of weeks ago and listed a lot of things on ebay. The plan was to pay for Xmas without going into debt. The payments started to come in last week. I now have just over £500 in my paypal account, and I need to withdraw it to my bank account.

However, I have been locked out, like many other people, since last Thursday. After many minutes of expensive calls to the "helpline", it has been established that the problem is not at my end - I have the correct login and password, and I can't access the account from any computer, using any internet browser. They accept that this is a problem with their server.

I realise that technical errors can happen, and I don't expect miracles to happen overnight, but I was astounded to be told that if Paypal can't fix the error, I will not be able to login, and I can never get access to my money. I asked if I could arrange by phone, in writing or by some other method to have my money transferred from Paypal to the bank account that I have registered with them - the answer was definitely not.

I have complained to the Financial Services Ombudsman - but I have to give Paypal 8 weeks to resolve my problem first, so no joy before Xmas I expect. Even then, I cannot see how I will get my money unless the technical problem is fixed - and what is the incentive for Paypal to do that?

I am geared up to make a small claim - I have been told by the Courts Service that a claim can be served at any office of the company, it does not have to be the head office (which is in Luxembourg, so no good).

I am so disappointed and worried.

garibaldi8 · 19 November 2008 at 9:57PM

Oh - and for goodness sake don't be tempted to change the default currency on your account - this seems to be a common link between those of us who can't login.

jimlappin · 19 November 2008 at 10:48PM

Can you let me know how you have gone about to re-claim the money back from paypal?

I have just over £430 in my paypal account - I myself had a clearout, I didnt want to go into debt for Xmas - Now I cannot access these funds - This is causing a lot of stress which can be easily avoided. Paypal just don't want to know really -

jimlappin · 19 November 2008 at 11:09PM

If anyone has ever encountered this problem - is it possible to get ebay to transfer the funds to your bank account for you? then you can close that account and open a new one?

luvvabargin · 19 November 2008 at 11:38PM

They tried this on with me about a year ago... I gave them 60 minutes to release my money or I would go straight to my local CID... funnily enough, they rang me within 45 minutes and had arranged a CHAPS transfer at their cost. The money was in my account within an hour.

They will tell you until they are blue in the face that there is nothing they can do. This is of course complete and utter rubbish.

It is your money, don't forget that. If they refuse to give it to you, it is THEFT, plain and simple. Report it to the police ASAP - but don't expect the police to be particularly receptive, they understand little more than parking tickets these days.

Be VERY FIRM with everyone, it is the only way you will ever get anywhere.

I'll see if I still have the number of the guy I threatened at Paypal - though as I say it was a good year ago, and they don't like to keep the same phone number for more than a few weeks, as they absolutely detest the public getting hold of any contact details for them.

luvvabargin · 19 November 2008 at 11:41PM

A thought: if this is happening to lots of people, you could do with quickly establishing one single police force, and preferably one CID contact (preferably the one nearest their UK office obviously) to report all these crimes to - more likely to get something done that way.

I seem to remember I dealt with an office in Ireland, though that could have been for ebay rather than paypal. (paypal is owned by ebay, as most people are well aware)

kiwi_fruit · 20 November 2008 at 1:29AM

Thanks for sharing, this got me thinking now however, is there any other cause other than changing default currency? What to do with the paypal balance, just leave it?