Paypal UK FOS Changes

born_again

Toufou said:

What it means is:  If you have a problem with Paypal eg they decide to hold your money like they have done with my husbands account, then you don't have any recourse but to comply with Paypal eg there is no longer a Governing Body in the UK that you can complain to as Paypal are now a law unto themselves.

My husband has held a Paypal account for 14 years as a private person NOT a Company.  He sells the odd thing like fishing reels, which he makes as a hobby (usually via word of mouth) thus Paypal is a good option for receipt of any payments. This seems to be ok for UK buyers, however on the odd occasion that he sells items to someone in the USA or other International Countries Paypal always puts his payments on hold stating an unusual amount of money, usually about £350 has gone into his account & they have placed it on hold until Paypal have received confirmation from the buyer that they have received the item and are happy with it, which with postal strikes can take over a month or more.  

Therein is the problem for my husband as not only is he out of pocket, Paypal are making a tidy profit on the interest they are making from holding the money but also hubby loses his money if the item is lost in the post or the buyer does not respond to Paypal emails.  

Even the Financial Conduct Authority have no Juristiction to help a single person & referred my husband to the FSO (apparently they did not know that the FSO no longer has Authority over Paypal from 1st December 2022), so they referred him to the FSO in Luxembourg!!!!!   The moral of the story is, either look for another payment option like Apple Pay or be prepared to have payments put on hold each time a payment is made into your account.   Looks like our Government has lost it's teeth once again to foreign companies (did it ever have any teeth is the first place?).

While he may not be trading as a business, as such. He is selling goods & PayPal do have limits on personal accounts. Especially if they pick up people are selling goods on a regular basis.
Also depends on just how payment is taken. Via a invoice or Friends & Family. If it is via F&F then you can see why PP are stepping in & blocking the payments, given no protection to the purchaser & is taken as avoiding pal pal charges.

PP are not making any profit out of holding payments. the funds are still there. And if the purchaser does not recieve the goods they it is only right they get refunded for the product they did not receive. 
As they are being sold oversea's makes it harder to recover funds if the purchaser it not telling the truth.

Other option is to get funds set direct to your bank account.