Will paypal pay bank charges???

frivolous_fay

skingirl wrote:

i opened a dispute with paypal as i didnt receive an item.the dispute was in my favour but i am still waiting for a refund as the seller didnt have any funds in her paypal account.so no i dont know if they can take money from your personal bank account as they didnt with my dispute.

If you funded your payment with a credit card, take it up with your cc provider.

Baby_J_2

PayPal cannot take money out of your Bank Account without authorisation. If the payment is pending in PayPal, they can reverse that.

Sugar_Coated_Owl

Whether or not they can/cannot take money from your bank account they do seem to do so anyway. I'm pretty sure that somewhere in the terms and conditions it does mention that they can.

Moglex

razorbladekisses wrote:

I'm sure if PayPal have your bank details and a problem arises then they can and will take the funds and hold them until the dispute is resolved.

I'm pretty sure you're wrong.

AFAIK the direct debit guarantee states that anyone performing a DD on your account must give you a certain amount of notice in advance that they intend to do so and the amount they intend to take.

Of course, if pp told you they were taking the money and you agreed to the T & C's, you have a problem.

Moglex

razorbladekisses wrote:

Whether or not they can/cannot take money from your bank account they do seem to do so anyway. I'm pretty sure that somewhere in the terms and conditions it does mention that they can.

Their T&C's cannot override the banks DD requirements and paypal will find themselves in hot water if they make a habit of using DD's to take money from people's accounts without fulfilling their obligations under the banks DD guarantee (assuming people actually complain to their bank).

Merchants who do not follow the rules can have the DD facility withdrawn.

This would cause the banks precisely zero hardship but would royally f*** paypal, so they need to watch their step.

Dazza.mk_2

#15 agreed,

An organisation must give you 10 days notice if the value of a DD changes (normal Paypal funding is automatically authorised by you so no notice requires). You would then have time to cancel the DD if you disagreed with the amount.

Contact your bank, they should refund the Paypal cash & the bank charges (as the DD Guarantee also covers consequential loss), and its up to them if they chase Paypal for it :- although Paypal will then put you account into a negative value.,

frivolous_fay

I'm not defending poopal - just giving you info here which may be relevant. It's from the user agreement.

This covers your bank fees I think (third party = your bank)

'2.6 Indemnification. You agree to indemnify and hold us, our subsidiaries, affiliates, officers, directors and employees harmless from any claim or demand (including legal fees) made or incurred by any third party due to or arising out of your breach of this Agreement or the documents it incorporates by reference, or your breach of any law or the rights of a third party relating to your use of the Service.'

Here's some stuff about putting a hold on your cash, it does refer to withdrawals:

Remedies and PayPal's Right to Collect From You. Without limiting other remedies, we may update inaccurate or incorrect information you provide to us, contact you by means other than electronically, immediately warn our community of your actions, place a hold on funds in your account, limit funding sources and payments, limit access to an account and any or all of the account's functions (including but not limited to the ability to send money or making withdrawals from an the account), limit withdrawals, indefinitely suspend or close your account and refuse to provide our Services to you if: (a) you breach this Agreement or the documents it incorporates by reference; (b) we are unable to verify or authenticate any information you provide to us; (c) we believe that your account or activities pose a significant credit or fraud risk to us; (d) we believe that your actions may cause financial loss or legal liability for you, our users or us; or (e) your use of your PayPal account is deemed by PayPal, Visa, MasterCard or American Express to constitute abuse of the credit card system or a violation of credit card rules, including (without limitation), using the PayPal system to test credit card behaviour.

https://www.paypal.com/uk/cgi-bin/webscr?cmd=p/gen/ua/ua-outside

Moglex

frivolous_fay wrote:

I'm not defending poopal - just giving you info here which may be relevant. It's from the user agreement.

This covers your bank fees I think (third party = your bank)

'2.6 Indemnification. You agree to indemnify and hold us, our subsidiaries, affiliates, officers, directors and employees harmless from any claim or demand (including legal fees) made or incurred by any third party due to or arising out of your breach of this Agreement or the documents it incorporates by reference, or your breach of any law or the rights of a third party relating to your use of the Service.'

This clause is not relevant since in this case there is no breach of law or rights by the OP.

Here's some stuff about putting a hold on your cash, it does refer to withdrawals:

Remedies and PayPal's Right to Collect From You. Without limiting other remedies, we may update inaccurate or incorrect information you provide to us, contact you by means other than electronically, immediately warn our community of your actions, place a hold on funds in your account, limit funding sources and payments, limit access to an account and any or all of the account's functions (including but not limited to the ability to send money or making withdrawals from an the account), limit withdrawals, indefinitely suspend or close your account and refuse to provide our Services to you if: (a) you breach this Agreement or the documents it incorporates by reference; (b) we are unable to verify or authenticate any information you provide to us; (c) we believe that your account or activities pose a significant credit or fraud risk to us; (d) we believe that your actions may cause financial loss or legal liability for you, our users or us; or (e) your use of your PayPal account is deemed by PayPal, Visa, MasterCard or American Express to constitute abuse of the credit card system or a violation of credit card rules, including (without limitation), using the PayPal system to test credit card behaviour.

The withdrawals they are refering to here are from a pp acount, NOT by them from a bank account.

In any case, paypal cannot modify the terms of the Banks DD requirements unilaterally in their T&C's.

Just as people have to agree the PP's T&C's in order to sign up to PP, PP have to agree to the bank's DD T&C's in order to sign up to the DD programme.

Banks WILL withdraw DD privileges from any company that abuses those privileges no matter how big they are.

Remember it would be in the bank's interest to stop PP using DD's as then customers would have to use credit cards which would make the banks more money and PP less.

Paypal need to tread very carefully.

frivolous_fay

You're probably right Moglex, but I imagine PP would spin it that the 'breach' would have been the OP's supposed failure to supply goods.

I'm sure there are an infinite number of ways to breach the agreement, and they can make one suit the situation.

Moglex

frivolous_fay wrote:

You're probably right Moglex, but I imagine PP would spin it that the 'breach' would have been the OP's supposed failure to supply goods.

I'm sure there are an infinite number of ways to breach the agreement, and they can make one suit the situation.

The thing is, though, that clause only protects poopal from claims for consequential loss. It does not give them the right to ignore the terms they signed to gain DD privileges. In any case, a court is very likely to strike out a clause such as that one as an 'unfair term or condition'. Courts do not generally look favourably on companies that try and escape their authority in that way. It's helpful to poopal to bluff their victims, though.

The answer to the OP's question is, anyway, no. It is the bank that would reverse the bank charges.