Paypal have frozen over £3000 of my company funds, small claims or statutory demand to get it?

Smiler2788

Ha comedian.... the 1000s bad reviews and the experts on here state 6 months what ever happens... please do follow.....ill make sure to write in capitals if easier for you?

ItsComingRome

Smiler2788 said:

Ha comedian.... the 1000s bad reviews and the experts on here state 6 months what ever happens... please do follow.....ill make sure to write in capitals if easier for you?

Nobody but you said it was going to take 6 months.  Everyone took what you said about it taking 6 months at face value and said that going to the FOS or the courts wouldn't resolve it in less than 6 months, and it didn't.

PayPal have nothing to fear from the FOS regarding this, they've repeatedly had their funds freezing policy upheld by them.  This was resolved by them concluding their investigation, nothing more.

Smiler2788

Thanks paypal expert interesting you know more than the ombudsman but hey.... anyway it didn't come home! 😅

ItsComingRome

Smiler2788 said:

Thanks paypal expert interesting you know more than the ombudsman but hey.... anyway it didn't come home! 😅

I don't know better than the Ombudsman, but I am capable of reading their decisions.

https://www.financial-ombudsman.org.uk/files/97515/DRN3766215.pdf

Mr K says that PayPal haven’t been reasonable, proportionate or justifiable in their actions against him. The terms and conditions of Mr K’s account say that PayPal might take the course of action they did if they believe an account imposes a risk to them. So I don’t think they’ve done anything outside of what the account terms allow – and it does seem like his activity did pose some risk.

Mr K also says that he’s never been given a clear explanation of the reserve that PayPal held against his account. He’s also questioned what PayPal do with the reserves they’ve held back from his account. PayPal have explained they actively review the accounts held with them and during a review of Mr K’s, they thought there was an element of risk involved in processing his payments

I do think PayPal could’ve offered a more comprehensive explanation when Mr K asked about this, but I haven’t seen anything to suggest he would’ve done anything differently even if they had. And from everything I’ve seen, I don’t think PayPal are doing anything they’re not allowed to do with this account.

In a similar vein (although specifically about withdrawal holds) https://www.financial-ombudsman.org.uk/files/42077/DRN1163123.pdf

I’ve looked at the terms of his agreement with PayPal and I agree with our investigator that PayPal is entitled to review and restrict withdrawals for security reasons. Clause 6.3 of the agreement allows PayPal to review withdrawal transactions to identify any risks, and/or to prevent money laundering and to assess whether any restricted activity is taking place. Where a risk is identified, PayPal can restrict or refused payment until the risk has passed.

Mr B wants several thousand pounds compensation as he says PayPal temporarily holding his payments has affected his business cash flow. As I’ve already said, I think PayPal is entitled to do this, so it wouldn’t be fair to tell it to pay compensation for any impact that has had on his business cash flow.

https://www.financial-ombudsman.org.uk/files/262856/DRN4449307.pdf

In seeing whether the reserves have been applied fairly to D’s account, I have to determine whether PayPal have applied the user terms fairly. I have referred to clause 10.4 Reserves. PayPal, in its sole discretion, may place a Reserve on funds held in your Account when PayPal reasonably believes … there may be a higher than acceptable level of risk associated with your Account. If PayPal places a Reserve on funds in your Account, the funds will be held in your Reserve Account and those funds will be shown as "pending" in your PayPal Balance. If your Account is subject to a Reserve, PayPal will provide you with a notice specifying the terms of the Reserve. The terms may require that a certain percentage of the amounts received into your Account are held for a certain period of time, or that a certain amount of money is held in reserve, or anything else that PayPal determines is necessary to protect against the risk associated with your Account. PayPal may change the terms of the Reserve at any time by providing you with notice of the new terms. You may close your Account if you object to the Reserve. If your Account is closed for any reason, we have the right to hold the Reserve for up to 180 Days.” The clause does say that PayPal can place a reserve on funds in an account if it considers there to be a “higher than acceptable level of risk associated with your account” In this situation, I can see that PayPal have carried out a risk review of the account by obtaining information from D and its accountant. The clause has not been used unfairly. 

My remit is to see whether PayPal has acted fairly and it is not unreasonable for a business to follow its terms and conditions after reviewing the account. Whilst I appreciate the frustration that D has experienced here, for the reasons stated, I am not upholding this complaint as I cannot see that PayPal have acted unfairly other than not sending notification of the reserve.

One final one https://www.financial-ombudsman.org.uk/files/45722/DRN1334289.pdf

I cannot see any reason why PayPal was not entitled to apply the holds while it assessed the risk represented by Mr G’s account – the holds were provided for in the terms of the account. I note the message that Mr G received from PayPal, but I do not agree with his interpretation of what it said. In particular, I do not accept that PayPal promised to apply only 10 holds. Funds were held for up to 21 days and, whilst I appreciate that this will have been very inconvenient for Mr G’s trading, I find that PayPal did not act unfairly or outside the terms of the account.

There are 19 more pages of those if you want some more.

Smiler2788

Look on trustpilot at there 1 star rating from businesses being affected...

ItsComingRome

Smiler2788 said:

Look on trustpilot at there 1 star rating from businesses being affected...

I don't care.  I wouldn't like my funds being withheld either. That doesn't mean PayPal isn't within its rights to do it.

born_again

Smiler2788 said:

Look on trustpilot at there 1 star rating from businesses being affected...

Sadly trustpilot is now a joke. Once used to be a reliable indication of how good retailers were. Now it seems good companies get slammed, and the very bad companies end up with 5 stars as they get poor reviews removed and replace them with their own or paid for ones, saying how good they are.

Smiler2788

Very true lots pointing out on twitter how genuine reviews now get removed...

ItsComingRome

born_again said:

Smiler2788 said:

Look on trustpilot at there 1 star rating from businesses being affected...

Sadly trustpilot is now a joke. Once used to be a reliable indication of how good retailers were. Now it seems good companies get slammed, and the very bad companies end up with 5 stars as they get poor reviews removed and replace them with their own or paid for ones, saying how good they are.

Well, the primary issue is that Trustpilot mysteriously start flagging negative reviews as "suspicious" when companies sign up for their services...

I mean, I can't think why that would happen...

Smiler2788

Yes! Had lots removed that were genuine reviews.