Ebay holding private sellers funds until proof of delivery from 4th Feb, 2025

RFW

Tracy39 said:

In the meantime I think they maybe gaining interest in their bank form your money sitting there. that's my concern about what;s really going on here, they must of thought some of us were born yesterday! I and my parents did think something was up with free listings coming in last year & no seller fees in uk, it sounded to good to be true. i'm going to write tp my mp as I feel something fishy is going on here and laws should be in place that a company like this cannot hold your funds. but most important point below is where do i get postage costs form to post my items if ebay hold my funds? ebay wont answer us properley!

It's against the law in the UK (and, I think, the EU) for any company to earn interest on client funds. This would apply to Ebay, in this case. I don't know if the current terms allow them to invest it in some way but they do need to have it included for them to earn on it.

As others have said this is fairly common practice amongst marketplaces. I was in touch with the Small Business Ombudsman over a large scale issue with Amazon where many businesses had their funds held for a prolonged period early last year. The SBO told me there was nothing they could do as they have no power over these companies. At least in this case Ebay are saying that it is for buyer protection.
As regards postage, most people will be able to afford it and very few will be spending £300 on international shipping.

Tracy39

jeffuk said:

I've been with ebay over 20 years, in the old days buyers could sent you a cheque, depending on your bank it could be over a week before you sent their item. Paypal to bank could take 5-10 days. Postal orders meant a trip to the post office to get your cash, that'd be after you'd waited for the postman to bring it. 

yes I remeber that and if people were in a rush for their item you simply didn't buy becuase you knew a cheque could have to clear first or funds to paypal. paypal now transfer within 2 hours these days.

Tracy39

RFW said:

Tracy39 said:

In the meantime I think they maybe gaining interest in their bank form your money sitting there. that's my concern about what;s really going on here, they must of thought some of us were born yesterday! I and my parents did think something was up with free listings coming in last year & no seller fees in uk, it sounded to good to be true. i'm going to write tp my mp as I feel something fishy is going on here and laws should be in place that a company like this cannot hold your funds. but most important point below is where do i get postage costs form to post my items if ebay hold my funds? ebay wont answer us properley!

It's against the law in the UK (and, I think, the EU) for any company to earn interest on client funds. This would apply to Ebay, in this case. I don't know if the current terms allow them to invest it in some way but they do need to have it included for them to earn on it.

As others have said this is fairly common practice amongst marketplaces. I was in touch with the Small Business Ombudsman over a large scale issue with Amazon where many businesses had their funds held for a prolonged period early last year. The SBO told me there was nothing they could do as they have no power over these companies. At least in this case Ebay are saying that it is for buyer protection.
As regards postage, most people will be able to afford it and very few will be spending £300 on international shipping.

actually the governemnt do on premium bonds. al money you pay for a premium bonds through their website NS&I, they put into either tax free acocunt or accounts off shore. so yes it does happen and i can find nothing to state this is illegal as i've searched the internet for answers! something smelt off last year with the free selling and money going to balance. they claim i'ts more buyer protection but buyer/seller protection should be equal, ebay have claimed to me on the phone that they take a nauetral stance on both sides, yet seller protection many has said and told their storys have not been great. i've been conned as well as a seller and ebay sided with the buyer myslef & family/friends were shocked as my item had been manipulated and i had photo evidence proof it was brand new. what eve rphoto they sent it wasn't my item possibly their won damaged item that they wanted to replace but couldn't afford and saw me selling it and thought they'd send photos of their own item! courier wouldn't compensate me as it was a porcelain mug a highly collectible one. so I lost out. not the only one to experience that amongst things. so now seller protection is even less, but ebay ave refuse dot answer use as to how we pay couriers to post expensive high value/large/heavy ties. one of which is going to cost £65 uk, £160 usa/can/3295 to australia ebay are not answering us as to where we get our money fro to ay the courier. I HAVEN'T GOT £65 AVIALABLE LET ALONE £295 IF THIS POLICY WAS IN PLACE NOW! but please show me where it states it's illegal for a company to use your funds to make interest as a business can do whatever they like with your money.

Tracy39

Tracy39 said:

RFW said:

Tracy39 said:

In the meantime I think they maybe gaining interest in their bank form your money sitting there. that's my concern about what;s really going on here, they must of thought some of us were born yesterday! I and my parents did think something was up with free listings coming in last year & no seller fees in uk, it sounded to good to be true. i'm going to write tp my mp as I feel something fishy is going on here and laws should be in place that a company like this cannot hold your funds. but most important point below is where do i get postage costs form to post my items if ebay hold my funds? ebay wont answer us properley!

It's against the law in the UK (and, I think, the EU) for any company to earn interest on client funds. This would apply to Ebay, in this case. I don't know if the current terms allow them to invest it in some way but they do need to have it included for them to earn on it.

As others have said this is fairly common practice amongst marketplaces. I was in touch with the Small Business Ombudsman over a large scale issue with Amazon where many businesses had their funds held for a prolonged period early last year. The SBO told me there was nothing they could do as they have no power over these companies. At least in this case Ebay are saying that it is for buyer protection.
As regards postage, most people will be able to afford it and very few will be spending £300 on international shipping.

actually the governemnt do on premium bonds. al money you pay for a premium bonds through their website NS&I, they put into either tax free acocunt or accounts off shore. so yes it does happen and i can find nothing to state this is illegal as i've searched the internet for answers! something smelt off last year with the free selling and money going to balance. they claim i'ts more buyer protection but buyer/seller protection should be equal, ebay have claimed to me on the phone that they take a nauetral stance on both sides, yet seller protection many has said and told their storys have not been great. i've been conned as well as a seller and ebay sided with the buyer myslef & family/friends were shocked as my item had been manipulated and i had photo evidence proof it was brand new. what eve rphoto they sent it wasn't my item possibly their won damaged item that they wanted to replace but couldn't afford and saw me selling it and thought they'd send photos of their own item! courier wouldn't compensate me as it was a porcelain mug a highly collectible one. so I lost out. not the only one to experience that amongst things. so now seller protection is even less, but ebay ave refuse dot answer use as to how we pay couriers to post expensive high value/large/heavy ties. one of which is going to cost £65 uk, £160 usa/can/3295 to australia ebay are not answering us as to where we get our money fro to ay the courier. I HAVEN'T GOT £65 AVIALABLE LET ALONE £295 IF THIS POLICY WAS IN PLACE NOW! but please show me where it states it's illegal for a company to use your funds to make interest as a business can do whatever they like with your money.

also they have not said how it provides better protection.

caprikid1

I think the majority of people getting upset are Pseudo business sellers who thought they were getting fee free trading. I genuinely don't see how non business sellers have that much personal items that they are disposing off.

If you buy to resell = Business. If you make something to sell = business.

RFW

Tracy39 said:

but please show me where it states it's illegal for a company to use your funds to make interest as a business can do whatever they like with your money.

Here you go...
https://www.handbook.fca.org.uk/handbook/CASS/7/?view=chapter

RFW

Tracy39 said:

actually the governemnt do on premium bonds. al money you pay for a premium bonds through their website NS&I, they put into either tax free acocunt or accounts off shore. so yes it does happen

That's part of the terms you sign up to when you pay money into Premium Bonds, Investments/banks aren't "held funds" anyway. Held funds are things like solicitors handling house sales. The law was there to stop them stalling sales so they could earn money when passing funds to the seller.

RFW

caprikid1 said:

I think Ebay fails to understand it's the business sellers who separate it from Market place and pay the majority of their income.

I think they know it really well. It's the big business sellers though, not the little ones. I don't know figures but I'd guess that the big companies account for 80% of Ebay revenue. The private sellers make it a bit more unique than other marketplaces.

RedImp_2

RFW said:

Tracy39 said:

but please show me where it states it's illegal for a company to use your funds to make interest as a business can do whatever they like with your money.

Here you go...
https://www.handbook.fca.org.uk/handbook/CASS/7/?view=chapter

Not sure that is applicable to EBay is it?

RFW

RedImp_2 said:

RFW said:

Tracy39 said:

but please show me where it states it's illegal for a company to use your funds to make interest as a business can do whatever they like with your money.

Here you go...
https://www.handbook.fca.org.uk/handbook/CASS/7/?view=chapter

Not sure that is applicable to EBay is it?

As far as I'm aware it's any company that holds funds for a third party. Ebay may well update their T&Cs to adapt this but, as far as I know, as it stands, they aren't allowed to earn interest on held funds within the UK. There are other ways to be annoyed about the change but I think the interest angle is barking up the wrong tree. There is some recent speculation that they may have started earning interest on held funds in certain countries but, unless it's changed very recently, they don't in the UK.