Sick of paypal

DAZ1973_2

hello all,:j,
well with myself being yet another victim of paypal's bad practice i am on the hunt for an alternative service and im just wondering if anybody on here would have any suggestions.

in addition, i have used paypal for several years now & since we started selling on ebay and usually we would transfer our balance to our bank account every day or two but we didnt do so for a week & our balance was around £5000 before we started another transfer.

however we shortly received a notification from paypal to say we now had limited access and our funds would be held for 180 days.this has obviously angered us deeply because we are fully verified on paypal & we are highly trusted ebay sellers so how can paypal do this ?.

anyway we have since done a lttle internet searching about paypal and we was deeply shocked to learn that paypal are well known for freezing accounts with high balances just in order to collect interest. surely this kind of bad practice is illegal or are they allowed to do this.

obviously we have still honoured the sales as its not our customers fault but our money is now held by paypal for 180 days.therefore i would like to hear from anyone else to whome has had their paypal balance frozen for no reason.

in the meantime we are either going to take paypal to the small claims court or file a complaint with the financial ombudsman in order to get our money released. stay well clear of paypal folks :mad:

vikingaero

Most of us in the City wonder how PayPal managed to obtain authorisation to trade. This was before PayPal moved their operations to Luxembourg. However PayPal are a voluntary member of the FOS. If you make a complaint under this scheme then PayPal will probably receive increased levies the following financial year, or if they are a pay-per-case member then they will be charged £4-500 whether your complaint is upheld or not. It's a real shame that so few PayPal members take this route as a sharp increase in costs is the only way to make them take notice.

What you first need to do is to make a formal complaint to PayPal. You need to exhaust their complaints procedure or if they refuse to change their minds within a reasonable time then ask for a deadlock letter, then make a complaint to the Financial Ombudsman. This will cost you only your time, paper and postage.

If the FOS upholds your complaint then great. If not you can still take court action.

Weirdlittleman

I very much doubt it is held for interest purposes.
Even high interest accounts only get a few percent these days (and those have minimum terms)

It is because they are looking to minimise their losses on paypal guarentee and accounts with high/regular balances are linked to fraud on a regular basis.

Someone accessed my account and Paypals quick action avoided me having any problems.

People who run business on ebay/online need to realise that paypal might be cheap but it isnt a good payment system and if they want the service they need to pay for it elsewhere.

cyberbob

If you search the internet yes you will find a minority with problems with paypal. One of the anti paypal webforums is actually funded by one of paypal competitors! Millions of people use paypal with no problems

You have not given any details of your problem or stated the reason why paypal are holding the funds. Paypal will give a reason so without that information it is difficult to offer anything specific. Paypal do not randomly freeze for no reason. So they must have a reason(even if they are wrong) Paypal will normally just ask for ID and receipts to unfreeeze the money. So there must be a lot more behind the reasons they have limited your access. It could be due to you exceeding transfer limits or an excesive nimber of disputes against you. It never as simple as they have just held your funds for the sake of it there is a reason. Once you know that reason you may be able to do something about it

The best advice is to phone them up and speak to them and find out their reasons.