Paypal account blocked with £2700 in it.

eshroom

I'm not sure if this is the right section, but paypal is a bank, so I put it here.


In June/July I sold several thousand pounds worth of items on eBay. I sold them pre-order with guaranteed dispatch of 22nd of July.

At the beginning of July, Paypal blocked my funds pending an investigation. They gave me 10 days to give them tracking numbers. Drop-shipping is not against Paypal's terms and conditions, therefore it is not unreasonable for me not to have been able to provide tracking numbers.

Since I was not able to provide tracking numbers, my account was frozen permanently, I was told funds would not be released for 6 months.

I had to pay my suppliers anyway, and I kept my word and sent all items out before the 22nd of July date I had promised.

I am a new graduate, yet to find a job, and am now in a position where I am owing money to creditors in order to get by while I wait for Paypal to release the £2,700 they have frozen until January.

I have provided Paypal with all the relevant information, from invoices to tracking numbers. I have also received positive feedback and 5 star ratings from every eBay customer I sold to. As far as I can see Paypal have no reason to continue blocking my account and holding my funds.

It is having a devastating effect on my standard of living and Paypal don't seem bothered in the slightest.


I want to take this to the small claims court. Can I compel paypal to release any and all the information they have on me? And if so, how? They refuse to tell me why they view me as a security risk, so in actual fact, I don't know why exactly they have held my money.

Perhaps people have other ideas as to how I may get the cash released, dialogue between myself and paypal has been unyielding to put things mildly :wall:.

Baz_2

Raise an online small claims court claim.

Seen this before, they stumped up with a day of receiving it. Costs around £80 and you probably won't get it back because they will stump up before the claim is heard but.

http://www.hmcourts-service.gov.uk/infoabout/claims/index.htm

Despite what they think, paypal do not uphold the law and are not judge and jury of your money.

Ignore opinions4u, one of many resident troll's around here.

ru20205

opinions4u - I may be wrong, but i thought eshroom was on here asking for advise, not to be insulted by being called 'pig headed' and tracking numbers are not a requirement for any item posted where paypal are involved in the transaction, so he has done nothing wrong!

eshroom - i would speak to Paypal and explain the sitation to them. If you have acted in faith, have not broken any terms and conditions, can prove the transactions and funds are legitimate, have a verified paypal account and have no limits on transaction amounts etc imposed through paypal, then as far as i can see they have no lawful right to withhold money from you.

The best advise i can give would be to speak to Citizens Advise to find out where you stand legally. They would be the best ones to speak to to find out whether they have a lawful right to withhold this money from you.

eshroom

Baz wrote: »

Raise an online small claims court claim.

Seen this before, they stumped up with a day of receiving it. Costs around £80 and you probably won't get it back because they will stump up before the claim is heard but.

http://www.hmcourts-service.gov.uk/infoabout/claims/index.htm

Despite what they think, paypal do not uphold the law and are not judge and jury of your money.

Ignore opinions4u, one of many resident troll's around here.

Thank you. Very helpful. I'd also be interested to know exactly why they view me as a risk. My account is over 5 years old with no complaints against it, 100% feedback and 5 star ratings. Is there any way of compelling them to give me any documents relating to investigations they say they have conducted on my account?

Baz_2

ru20205 wrote: »

opinions4u - I may be wrong, but i thought eshroom was on here asking for advise, not to be insulted by being called 'pig headed' and tracking numbers are not a requirement for any item posted where paypal are involved in the transaction, so he has done nothing wrong!

eshroom - i would speak to Paypal and explain the sitation to them. If you have acted in faith, have not broken any terms and conditions, can prove the transactions and funds are legitimate, have a verified paypal account and have no limits on transaction amounts etc imposed through paypal, then as far as i can see they have no lawful right to withhold money from you.

The best advise i can give would be to speak to Citizens Advise to find out where you stand legally. They would be the best ones to speak to to find out whether they have a lawful right to withhold this money from you.

I really wouldn't waste your time doing this, paypal do not care and CAB are useless for this kind of thing.

The only way to do it is the courts. I assume you have not had a dispute raised by any of your customers so why has paypal decide you are suddenly a crook?

As said, a mate sold a motorbike for £3k and it was delivered personally and no dispute was ever raised. But paypal suspended the account for 6 months. Nothing could be done until a claim was raised and they paid out a few days after it was submitted, coincidence?

Baz_2

eshroom wrote: »

Thank you. Very helpful. I'd also be interested to know exactly why they view me as a risk. My account is over 5 years old with no complaints against it, 100% feedback and 5 star ratings. Is there any way of compelling them to give me any documents relating to investigations they say they have conducted on my account?

No idea, paypal are the scummiest company on the planet IMO. Sometimes people with 2 accounts can be flagged or any other similar sort of thing. Maybe they think you are a business trading from a personal account. Dunno.

Have a look at www.paypalsucks.com for many a similar story. Conmen IMO.

withabix

Have you told HMRC that you are running a business?

Baz_2

withabix wrote: »

Have you told HMRC that you are running a business?

That is irrelevant to his post and to paypal.

Also as an unemployed graduate I doubt he is a taxpayer anyway.

bengal-stripe

eshroom wrote: »

I sold them pre-order with guaranteed dispatch of 22nd of July........ Drop-shipping is not against Paypal's terms and conditions, therefore it is not unreasonable for me not to have been able to provide tracking numbers.

As far as I'm aware, paypal does not allow payments for goods which are not in your physical possession at the time you receive payment (taking orders for some future delivery, drop shipping or the sale of 'virtual' goods).

Unfortunately, paypal is rather between a rock and a hard place with all the money-laundering regulations, particular as paypal payments can easily cross from one country into another. Do you think, you would have had problems with your bank, flagging up 'unusual activities' had these payments been transfers to your account?

Then use your bank account (preferably a business one) with future deals.

eshroom

Baz wrote: »

I really wouldn't waste your time doing this, paypal do not care and CAB are useless for this kind of thing.

The only way to do it is the courts. I assume you have not had a dispute raised by any of your customers so why has paypal decide you are suddenly a crook?

As said, a mate sold a motorbike for £3k and it was delivered personally and no dispute was ever raised. But paypal suspended the account for 6 months. Nothing could be done until a claim was raised and they paid out a few days after it was submitted, coincidence?

I did have a dispute. Someone purchased an item, Paypal held the money and warned me the buyer may be fraudulent and I should wait pending an investigation. A week later the buyer filed an item not received dispute (don't ask how this is possible, they haven't told me wither). Anyway, that triggered the account limitation.

Did your friend regain use of the account also?

bengal-stripe wrote: »

Then use your bank account (preferably a business one) with future deals.

I would, except a paypal account is a requirement when selling on eBay.

Lokolo

Baz wrote: »

Raise an online small claims court claim.

Seen this before, they stumped up with a day of receiving it. Costs around £80 and you probably won't get it back because they will stump up before the claim is heard but.

http://www.hmcourts-service.gov.uk/infoabout/claims/index.htm

Despite what they think, paypal do not uphold the law and are not judge and jury of your money.

Ignore opinions4u, one of many resident troll's around here.

Of course you would know being such an active member of this forum.....

O4U maybe blunt, but usually with good reason to be. Be nice.