Can paypal remove money from your bank account?

Hello everyone
I've got a bit of a situation going on with PayPal at the moment as there is a dispute between me and someone who I sold a mobile phone to. They are trying to claim a refund even though I sold the phone to them exactly as described (with a few listed faults) they are making out having taken the phone to bits there are more faults than I told them . As they have sent the phone from the UK address I sent it to to Pakistan I am extremely wary of what's going on and suspect a scam. They took 3 weeks after recieving the phone to ask for a refund which in my book is inexcusable. Anyway they have requested a £75 refund (strange amount as I sold it to them for £170). However up until recently I was ignoring their requests for a refund and just hoping the issue would go away. The other day I made a transaction online to a baby clothes company in America and should of been charged 55.21 USD from my debit card.  However I noticed the amount debited from my bank was £118.21 far more than the transaction amount. I immediately contacted the baby clothes company who said they only recieved 55.21USD.  upon checking PayPal account this appears to be true however I still have been charged £118.21. so I did the maths and realised the difference was 77 pounds, strangely close to what the buyer was asking for in refund. I also noticed that under the baby clothes transaction of 55.21 it says something about £ 75 PayPal balance (not possible as I never put money into PayPal only use the Debit card) so I am wondering has PayPal tried to siphen off additional money from my transaction with the baby clothes shop in order to hold money over this dispute? And can they legally be allowed to do this when the amount I authorized was only 55.21 USD? I cannot think where else that additional 77 pounds has gone. The PayPal balance is currently listed as zero so there is no trace of the 77 quid missing.  I was pretty shocked when I checked my bank statement and need to get the funds back asap. Can anyone advise me on what to do next?  


  • PaulW922PaulW922 Forumite
    1K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    If someone has lodged a claim against you via PayPal for £75 then Paypal may well decide to put £75 'on hold' pending a resolution. If you have set up a DD or given your credit or debit card to them it is probably in the T&Cs. 

    HOWEVER - if your 'customer' has lodged a claim against you via ebay/paypal and you have ignored it (as you suggest) then you may find that Paypal has decided in the buyers favour and refunded the £75. 
    Only you can answer that one I'm afraid 
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