paypal limitation

les0863

why is the fact he was scammed relevant ? they are not a bank but surely must comply to regulations - how can they withhold funds relating to a 3rd party ? they must be governed by something .... they provide credit and would therefore thought must comply to UK regs in order to get a licence ? I don't know, that's why i'm here, but doesn't seem right

powerful_Rogue

les0863 wrote: »

why is the fact he was scammed relevant ? they are not a bank but surely must comply to regulations - how can they withhold funds relating to a 3rd party ? they must be governed by something .... they provide credit and would therefore thought must comply to UK regs in order to get a licence ? I don't know, that's why i'm here, but doesn't seem right

Because in your first post you made it sound like he was £1200 in debt with paypal due to his own accord and made no mention of the scamming.

I'm out, but before I go, have a look at this to help.

https://www.gov.uk/government/consultations/designation-of-payment-systems-for-regulation-by-the-payment-systems-regulator/designation-of-payment-systems-for-regulation-by-the-payment-systems-regulator

stuartJo1989

les0863 wrote: »

not allowing me to withdraw any of balance as my son has his own personal account with them and owes them money - a lot less than what they are holding of mine

Ah ok, so you have enough money to cover a £1200 debt then?

Why don't you speak to Paypal and request that they take the debt from your own personal account? Then get your son to pay you back x amount per month?

That's what normal parents do in a situation like this, more so if your son was scammed (which must be fairly distressing for him, no?). He surely needs his dad to come to his aid? And to maybe give him a clap round the ear about being more streetwise when it comes to scams? We all make mistakes like, but £1200 is a lot of money and you have to be CAREFUL!

Besides, why are you even using Paypal?? I hate them! It is a scammers paradise and is nothing like a good old bank account/debit/credit card.

You should probably also contact the police and report a crime, though they may not be too interested. Your son may also find some sort of recourse in following Paypal's Ts and Cs in relation to fraud, and those of any third party he used (ebay? etc).

Hermione_Granger

powerful_Rogue wrote: »

Paypal is not a bank so not regulated like them.

Paypal are a bank, just not a UK bank.
They obtained their banking licence in 2007 (issued by the Luxembourg banking authority) and once they became an overseas based bank, they fell outside of the remit of the UK's Financial services authority and instead are regulated by the Luxembourg banking commission.

les0863 wrote: »

surely they have to abide by UK banking regs and laws ? if so - they cant do it.

If they were UK based then yes, they would have to follow UK banking regulations but this isn't the case.
I've no idea of what Luxembourg law states on this but with a good bit of Googling you may be able to find out.

maninthestreet

http://www.paypalsucks.com/view_story.php?name=paypal-uk-phone-number

bris

Once this is sorted one way or another your account will be closed. Whether it's linked or not they do not give second chances and the whole household suffers.


Guilty by association, they know most people try to get round it by using other peoples accounts and 99% of the time they are right because not having a Payplay account to use causes a hell of a lot of buying and selling problems.

sheramber

les0863 wrote: »

why is the fact he was scammed relevant ? they are not a bank but surely must comply to regulations - how can they withhold funds relating to a 3rd party ? they must be governed by something .... they provide credit and would therefore thought must comply to UK regs in order to get a licence ? I don't know, that's why i'm here, but doesn't seem right

https://www.paypal.com/uk/webapps/mpp/ua/useragreement-full?locale.x=en_GB

1.1 PayPal is only a Payment Service Provider. PayPal (Europe) S.à r.l. et Cie, S.C.A. (R.C.S. Luxembourg B 118 349) is duly licensed as a Luxembourg credit institution in the sense of Article 2 of the law of 5 April 1993 on the financial sector as amended (the “Law”) and is under the prudential supervision of the Luxembourg supervisory authority, the Commission de Surveillance du Secteur Financier.

PayPal’s main business is the issuance of E-money and the provision of services closely related to the issuance of E-money. A description of the main characteristics of the PayPal Service is set out in the Key Payment and Service Information document which is accessible via the Legal Agreements link of each page of the PayPal website(s). Since the service is limited to E-money, which does not qualify as a deposit or an investment under Luxembourg law, you are not protected by the Luxembourg deposit guarantee or investor indemnity schemes administered by the Conseil de protection des d!posants et des investisseurs. PayPal enables you to make payments to and accept payments from third parties. PayPal is an independent contractor for all purposes.


14.1 Contact PayPal First. If a dispute arises between you and PayPal, our goal is to learn about and address your concerns and, if we are unable to do so to your satisfaction, to provide you with a neutral and cost effective means of resolving the dispute quickly. Disputes between you and PayPal regarding our Services may be reported to Customer Service online via the "Email Us" link on the "Contact Us" page at any time, or by calling the Customer Service telephone number located on the PayPal website(s) and by logging into your Account.

14.2 ECC-Net, Financial Ombudsman Service and CSSF. If you have a complaint to make about us, you may choose to escalate it by contacting one of the following:

European Consumer Centre (ECC-Net). You may obtain further information regarding the ECC-Net and how to contact them at (http://ec.europa.eu/consumers/redress_cons/).
UK Financial Ombudsman Service (FOS). For UK resident Users only - the FOS is a free, independent service which might be able to settle a complaint between you and us. You may obtain further information regarding the FOS and contact the FOS at http://www.financial-ombudsman.org.uk.
Commission de Surveillance du Secteur Financier (CSSF). The CSSF is the authority responsible for the prudential supervision of companies in the financial sector in Luxembourg. You can contact the CSSF at 283 Route d’Arlon, L-1150 Luxembourg. You may obtain further information regarding the CSSF and how to contact them at: http://www.cssf.lu.

Gavin83

How much do you have in your account? I never keep too much in there purely for this reason. Sometimes they don't even have a reason for locking someone's account and once it's locked it's rarely unlocked.

The account is gone, you just need the money back. Ask them when they're planning on returning your funds and make it clear the other debt isn't yours. If they don't give a satisfactory answer send a LBA.

JReacher1

Gavin83 wrote: »

How much do you have in your account? I never keep too much in there purely for this reason. Sometimes they don't even have a reason for locking someone's account and once it's locked it's rarely unlocked.

The account is gone, you just need the money back. Ask them when they're planning on returning your funds and make it clear the other debt isn't yours. If they don't give a satisfactory answer send a LBA.

A LBA will have no effect on a company the size of PayPal.

usefulmale

JReacher1 wrote: »

A LBA will have no effect on a company the size of PayPal.

What you mean is that Paypal won't care about a LBA. However, if the OP follows it through he will get his money released.