Paypal have closed my account

ksa_n

Sorry for this very long thread. It's the first time I've posted here and I'm fuming!

I use my PayPal account to make online purchases only. It's never been used to collect money. I've never had any complaints from retailers regarding non-payment. On 11th September, out of the blue, I received an email stating my account was limited. Today I've submitted a formal complaint to PayPal which I've pasted below. I used a letter template from a similar thread in 2007 (can't post the link as I'm a new forum user):

Regarding my to be closed PayPal account
RE case no xxx,

Further to my recent conversation with your customer service centre, I would like to raise some concerns over your recent actions.

I am a genuine PayPal customer and have never had any reason to complain about your service, nor have you had any reason to call into question my integrity.

My understanding is you have limited and then gone on to close my account due to 'certain activity that took place relating to your account.’ In my last conversation with customer services they would not elaborate on what this alleged activity was.

I’ll now give you a timeline of events as they occurred:

11th September 2012 - PayPal email; My account has been limited due to ‘an unusual pattern of activity in your PayPal account, which could indicate a high risk. Reference Number: xxx.’ When I contacted customer services I was verbally told the limitation may have been placed as I had logged on from a different country instead of the UK. I explained I had commenced employment with xxx in February 2011 on a two year contract and was working in xxx (a different country). The contract ends in January 2013. I still have financial commitments in the UK which is why I require a UK based PayPal account. I was asked to submit photo ID and proof of address which I uploaded to you.

13th September 2012 - PayPal email; ‘your accounts have been restricted’...‘It appears that you have more than one account, and one of them has engaged in activity that violates our User Agreement.’ When I phoned your customer services representative she could not find the other account that I allegedly have and I was informed she would ask for the case to be reviewed again. For the record and to the best of my knowledge I cannot recall having two accounts nor have I engaged in any suspicious activity.

14th September 2012 - PayPal email; ‘PayPal appeal denied’...’we’re initiating the closure of your PayPal account because of certain activity that took place relating to your account.’ Note this email states your ‘account’ and not accounts. I explained I am a well reputed UK doctor working as a GP and only use my PayPal account to pay for services such as Skype and buying goods over the internet. I have never received money through my PayPal account. For example, I have never sold goods through Ebay and collected money this way. When I telephoned again, your representative would not reveal what activity I had allegedly carried out to result in my account closure. I was advised I could appeal online.

I have recently changed my address this year. My previous address was xxx and my current address is xxx. Could I be the victim of identity theft where someone may have used this new address and my details to set up another account in my name, and then possibly engaged in activity that breached your terms and conditions?

I am most unhappy about this course of action. I have supplied all information you originally requested in a timely manner, and yet within a few days you had decided you wanted to part company and not have my business any longer.

I would ask you to review and reopen my account for my use at your earliest convenience. Should you find this course of action unavailable to you, I would ask that you put into writing your full reasons for closing my account.

I am appealing this decision on a matter of principle as I sincerely believe I have not deliberately engaged in any suspicious activity which should lead to my account closure.

Your response is requested in writing, within fourteen days. I will be taking legal advice and action if I do not hear from you within this time frame.

I'm waiting for they're reply. Does anyone have any suggestions as how next to proceed if they do not produce a satisfactory explanation? My thoughts are either to go through UK Financial Ombudsman Service or instruct a solicitor and get them in front of a judge and force them to reveal their reasons. I (think) I'm aware how much legal action would cost but it's a price worth paying as I sincerely believe I've done nothing wrong.

Your thoughts/comments appreciated.

Irn-Bru-Kid

Someone more experienced will no doubt be along to advise you shortly.

In the meantime, I think I am right in saying Paypal can do as they please. If they believe your account is a risk, they will shut you down. It is their prerogative and neither the FOS nor a lawyer will be able to help you.

You need to keep at paypal for an explanation and plead with them to reinstate your account.

ksa_n

Thanks for that.

At the moment though I'm hitting a brick wall whenever I try and speak to them. I feel they're being very stubborn in refusing to reveal their reasons for the account closure. Of course it's their prerogative but it's not good way to run a business though.

Let's see how they respond to my formal complaint.

Welshlassie

Will be watching your progress with interest as I have also had my account limited for no valid reasons but there have been mentions of linked to another account (apparently in Ireland). I hope you get a response to your satisfaction.

Crowqueen

Two things to think about are whether you are linked with anyone who has been performing badly or might even have been involved in scam/problem transactions, or whether you have made any unusually large purchases different from your usual history.

Also think whether someone might have logged on to their account from your computer.

jimsmillions

Crowqueen wrote: »

Two things to think about are whether you are linked with anyone who has been performing badly or might even have been involved in scam/problem transactions, or whether you have made any unusually large purchases different from your usual history.

Also think whether someone might have logged on to their account from your computer.

Three accounts get logged onto from this PC and have done for years. Never caused a problem and I dont see why it would. More than one shopping adult can live in a household.

ksa_n

Thanks again all.

Crowqueen - I'll try and think of anything unusual but nothing obvious springs to mind for now. What you're stating is the essence of my complaint; I'd like to know what the 'certain activity' they're referring to was. For example, if someone has used my account fraudulently then I'd like to know so I can take steps to remedy this.

So far in three phone calls I've been told firstly I logged in from abroad so prove my new address and confirm my identity which I did. Second time they said I had two accounts one of which violated their T+Cs. Third time and it seems as if it's one account after all but some 'certain activity' they didn't like.

I'm determined to get to the bottom of this even if it costs me.

UnderPressure

I would not waste your money with legal advice or action, Paypal's terms and conditions are so water tight they probably do not even have to offer you any reason, they are a nightmare of a company to deal with always have been probably always will be.

I know it is a nightmare but the best thing you could do is probably just move on, get yourself one of those prepay credit cards, I use Orange Cash google it, you can transfer money via debit card from your bank account to it virtually instantly then whenever you wish to pay for anything with paypal there is usually an option that allows you to pay without having a paypal account, for anything else ask the seller or whoever it is you are sending money to, to send you a paypal invoice if you follow the pay now link again you should be able to pay without actually having an account.

You could carry on bashing your head against a wall with them for the next 5 years and not get any further, for your own sanity I would just move on, or even better see if anyone you do send money to will accept Google Checkout or even Nochex there are other payment solutions out there.

Worth bearing in mind also is now most banks routinely transfer money under the faster payment scheme (google it) which is just as effective if not better in some ways than paypal, with a bank transfer though you do not have any "protection" should anything go wrong, you do get the same protection from a pre paid credit card that you do from a normal one.

I hope that helps, there are ways and means to get another paypal account but ultimately if you can cut the tie for good it is probably better.

Good Luck.

Crowqueen

jimsmillions wrote: »

Three accounts get logged onto from this PC and have done for years. Never caused a problem and I dont see why it would. More than one shopping adult can live in a household.

True enough but people do odd things with their accounts that they don't always tell people about.

For example if someone else in my house gets more than two NPB strikes (and my mother is relatively new to eBay and spent a while working out how to pay for things or set up a Paypal account) my account could be banned too. Adults vary in their conduct; my mother is perfectly upright a person, has a very high-flying job and would never deliberately break the law, but once recommended to me that I effectively shill by allowing her to bid up my auctions. Needless to say I told her not to, but from that it has never surprised me that ordinary people do extraordinary things or suggest strange things that happen to be absolute no-nos.

How many people here think it is fine to cheat eBay out of fees by overcharging on postage but would never dream of leeching off someone else's internet connection or satellite TV?

The OP has obviously had something happen to her account so it is wiser to follow up what might have happened than live in denial that they are the most scrupulous eBay buyer ever. I doubt Paypal would kick you off for non-payment but they might kick you off for making large high-risk once-off purchases or changing your shopping habits drastically - so it looks as if your account has been hijacked, for instance.

soolin

Crowqueen wrote: »

True enough but people do odd things with their accounts that they don't always tell people about.

For example if someone else in my house gets more than two NPB strikes (and my mother is relatively new to eBay and spent a while working out how to pay for things or set up a Paypal account) my account could be banned too. Adults vary in their conduct; my mother is perfectly upright a person, has a very high-flying job and would never deliberately break the law, but once recommended to me that I effectively shill by allowing her to bid up my auctions. Needless to say I told her not to, but from that it has never surprised me that ordinary people do extraordinary things or suggest strange things that happen to be absolute no-ce.

Slightly off topic but I had to comment on your post Crowqueen. I worry about this all the time and my sons are fed up of me nagging them about it. All 3 of them log in from my PC on occasions and use their eBay and PayPal accounts, and being young they are often not fully aware of how careful they need to be. It worries me that if one of them does something stupid (one nearly forgot to pay for something recently as he bid, got outbid and thought that was that- but high bidder withdraw bid and he actually won) and gets suspended or possibly even restricted I lose my business account.

Even my elderly , wonderful neighbours have logged into my broadband with my permission and used eBay when their own broadband was down

My recent post about not being able to pay for goods shows how paranoid I am about this being linked problem.

Crowqueen

ksa_n wrote: »

Thanks again all.

Crowqueen - I'll try and think of anything unusual but nothing obvious springs to mind for now. What you're stating is the essence of my complaint; I'd like to know what the 'certain activity' they're referring to was. For example, if someone has used my account fraudulently then I'd like to know so I can take steps to remedy this.

So far in three phone calls I've been told firstly I logged in from abroad so prove my new address and confirm my identity which I did. Second time they said I had two accounts one of which violated their T+Cs. Third time and it seems as if it's one account after all but some 'certain activity' they didn't like.

I'm determined to get to the bottom of this even if it costs me.

What happened the second time? Did you prove the two accounts were unrelated?

Could your account have been compromised through a phishing attempt or a keylogger? Paypal would want to immediately pull the plug to prevent you or them being liable for large bills. I know people moan about that, but a hacker bent on defrauding both you and them would probably not respond to a nice warning email ticking them off and telling them not to do it again.

Failing that, having had three issues (the third of which you may not know about) in a relatively short space of time might also have had them decide you were too high a risk and the 'certain activity' might be simply a response to successive problems.

Sorry to be pessimistic but companies can deny service to anyone they want to, and if they think you are causing problems for them their risk management would be to restrict you .