Close your Paypal account by end JUNE

brettles

Most know how insecure Paypal is...you might as well just write them a blank cheque.

BUT you should CLOSE your account by the end of the month for security.

They are moving all accounts and legal entity to (what we used to call) 'offshire....Luxemburg.

What this really means...apart from lower tax and regulatory bill for them...is THAT YOU WILL NO EFFECTIVE COMEBACK against them. If you seriously believe that Luxemburg banking authorities will protect you, just think what a great job they did for Robert Maxwell,s creditors.

YOU will not be able to sue them in UK. There will be no regulatory control of them in UK. They will be no UK data protection. They could just take your money and (unless you can navigate EU consumer legislation/system...and few can) you will lose it. Their staff could even sell your bank/credit card details and you would have no effective comeback.

However Paypal can be convenient so what can you do?

Two obtions:-

1. use an alternative. Almost all are cheaper and much more secure. EggPay is pretty good;

2. if you must use Paypal, then close your account, open another after the transfer date (02/07) and regsiter something like a Cahoot webcard...DO NOT GIVE THEM YOUR BANK ACCOUNT DETAILS. At least then your risk will be limited to your last transaction

windswept

Nothing like a good scare story!:rolleyes:
If paypal is so unsafe, how come companies like Boots and Harrods are using it? The main problem seems to be that most people think paypal are a bank, they are NOT.
IF you follow all their rules and regulations, it is highly unlikely as a buyer or seller, that you will come unstuck.
The recurring factor on here with tales of woe from people "ripped off" by PP, is that they all have not fully understood their obligations, or have decided to sidestep one or more rules.

mobilejo

That is far from true WINDSWEPT - even under their current rules and regulations - Paypal have the power to withold your money for as long as they want and clawback money after buyer complaints.

I admit that as a buyer, you are well protected because once you pay a seller, thats pretty all there is to it. But as a seller, your money is never safe.

I know what you mean about understanding the rules, but when you do fully understand them, then you realise that you'd be a fool to trust them because you have effectively given them the ultimate power over your money - and not just whats in the account but any amount that has been paid into and withdrawn in the past.

If the rules are all in Paypal's favour, with no official body to regulate them either, what happens in the event of a dispute - of which there will be many.

As an example, look at UK banks, we all know the rules about fee's but the fact that the rules are unfair and the fact that banks are regulated in the UK means that we can challenge their actions. We can't do that with Paypal.

frivolous_fay

mobilejo wrote: »

That is far from true WINDSWEPT - even under their current rules and regulations - Paypal have the power to withold your money for as long as they want and clawback money after buyer complaints.

What is far from true about this?

'IF you follow all their rules and regulations, it is highly unlikely as a buyer or seller, that you will come unstuck.'

Soulistic

Here is some more information:

https://www.paypal.com/uk/cgi-bin/webscr?cmd=xpt/cps/general/LUXMigrationFAQ-outside

windswept

Anyone with ANY sense would not keep more than they could afford to lose in their paypal account, or even link it to a bank account where paypal would have access to any significant amount of money.
Our paypal a/c is directly linked to our business bank account, as we are registered merchants on paypal, I still would not keep £100's of pounds in the account, I keep just enough in it to keep it ticking over, the rest is transferred to a deposit a/c that paypal would have no access to.
I am not stupid enough to think that paypal is perfect and I make myself fully aware of all the risks.
There is a thread on the ebay boards at the moment where an unfortunate lady's paypal account has been emptied of over £4000 via her bank a/c, she has had immediate help from them.