Paypal asking for ID

mead18

I barely use Paypal (except for 99p a month payment for Apple storage). Had an email from Paypal saying I needed to log in and verify some account details and they've already temporarily limited some features. I logged in (NOT VIA THE EMAIL) and saw they were asking for photo ID and 2 other identity proofs. This annoyed me and I decided there and then to close my Paypal account which happened almost instantly.
 (Another thing tickling the back of my mind was remembering Martin saying you could lose your section 75 rights if you pay via Paypal and credit card).
Anyone else been asked to verify identity recently? Have you done so?

Exodi

Any reason why a financial institution checking your identity has annoyed you?

Financial institutions are obliged to perform KYC (Know Your Customer) checks and the like which ultimately protect the consumer (e.g. if I pretended to be a Nigerian prince and convince you to send me your lifes savings, surely you'd expect the financial institution to have at least verified who I really am should you report it)? You wouldn't want a world where I can open a bank account in the name of Bilbo Baggins from The Shire would you?

Closing your PayPal account in response seems petty - do you have a bank account? They would need to have ID'd you as well, so do you intend to close your account with your bank also?

Yes, I'm generally asked to verify ID whenever I open a new account with a financial institution - I happily oblige, it certainly doesn't ruin my day.

flaneurs_lobster

A financial institution has asked you to verify your ID.
You didn't want to do this so you closed your account.

Now you are asking if anyone else has been asked to verify their identity?   Yes.

And did they comply?   Yes.

What are you hoping to gain from this enquiry?

If it's an online storm of rage about the devilish fiends of PayPal wanting your deepest secrets for their nefarious ends then I suspect you will be sadly disappointed.

AstonSmith

I suppose the difference in my mind is that they weren't storing any money with PayPal, so they were acting more like a payment processor. Has Worldpay asked any of you for several ID proofs before it'd let you pay? Would it be reasonable for them to?

boingy

PayPal are not a financial institution.

danny13579

AstonSmith said:

I suppose the difference in my mind is that they weren't storing any money with PayPal, so they were acting more like a payment processor. Has Worldpay asked any of you for several ID proofs before it'd let you pay? Would it be reasonable for them to?

You're kind of comparing oranges with pears here.

Having a PayPal account allows people to store money, the fact that OP hasn't stored any money there doesn't really matter, they have the account so they need to provide the ID if they want to continue using it.

OP can still pay for stuff using PayPal without having a PayPal account.

Middle_of_the_Road

mead18 said:

I barely use Paypal (except for 99p a month payment for Apple storage). Had an email from Paypal saying I needed to log in and verify some account details and they've already temporarily limited some features. I logged in (NOT VIA THE EMAIL) and saw they were asking for photo ID and 2 other identity proofs. This annoyed me and I decided there and then to close my Paypal account which happened almost instantly.
 (Another thing tickling the back of my mind was remembering Martin saying you could lose your section 75 rights if you pay via Paypal and credit card).
Anyone else been asked to verify identity recently? Have you done so?

Everyone has, or will be asked to comply with these demands unfortunately. 
It seems there are countless criminals operating accounts, throughout our towns and cities.

The banks have been fined on multiple occasions for enabling money laundering, and it's now fallen on everyone else to prove who we are, and where our money has come from.

I understand the feeling of intrusion, if you're not familiar with the situation, and it's a pity some find it necessary to reply in a supercilious or abrasive manner.

Anyone who's had a single bank account for decades will never have been met with these requests before, so I see no need for the lectures.

OldBenKenobi1

boingy said:

PayPal are not a financial institution.

It is actually. It holds a UK & European banking license

From their website

"PayPal UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA) as an electronic money institution (firm reference number 994790); in relation to its regulated consumer credit activities (firm reference number 996405); and for the provision of cryptocurrency services (firm reference number 1000741)."

flaneurs_lobster

OldBenKenobi1 said:

boingy said:

PayPal are not a financial institution.

It is actually. It holds a UK & European banking license

From their website

"PayPal UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA) as an electronic money institution (firm reference number 994790); in relation to its regulated consumer credit activities (firm reference number 996405); and for the provision of cryptocurrency services (firm reference number 1000741)."

Hello and Welcome.

Just so you know that this site is full of helpful and friendly pedants like me...

PayPal do not hold a banking licence in the UK, they do have FCA authority for the services referred to in your link but they are not regulated by the Bank of England's Prudential Regulation Authority, you need to be authorised by both organisations to be a Bank (ie have a banking licence).

They do have full banking rights in the EU, they are registered and regulated by the Luxembourg authorities.

j.p

Middle_of_the_Road said:

mead18 said:

I barely use Paypal (except for 99p a month payment for Apple storage). Had an email from Paypal saying I needed to log in and verify some account details and they've already temporarily limited some features. I logged in (NOT VIA THE EMAIL) and saw they were asking for photo ID and 2 other identity proofs. This annoyed me and I decided there and then to close my Paypal account which happened almost instantly.
 (Another thing tickling the back of my mind was remembering Martin saying you could lose your section 75 rights if you pay via Paypal and credit card).
Anyone else been asked to verify identity recently? Have you done so?

Everyone has, or will be asked to comply with these demands unfortunately. 
It seems there are countless criminals operating accounts, throughout our towns and cities.

The banks have been fined on multiple occasions for enabling money laundering, and it's now fallen on everyone else to prove who we are, and where our money has come from.

I understand the feeling of intrusion, if you're not familiar with the situation, and it's a pity some find it necessary to reply in a supercilious or abrasive manner.

Anyone who's had a single bank account for decades will never have been met with these requests before, so I see no need for the lectures.

I had to close my long-held Ecology BS due to a similar problem recently.

I was a savings member twice, the first time for about ten years, eventually closed, the second time for about five.

A month ago I decided to close an account with withdrawal restrictions that wasn't paying a good rate and replace it with a new one without restrictions, and the new account opening was approved.

Seeking to update my payee list at four banks I bank with, I deleted the old Ecology account payees at each and sent £1 using online banking to the new one, bearing the new account reference.

A few days later Ecology calls wishing to speak to me and "do some checks", and they sounded serious. No disclosing the motive for the call till I'd pass security. Not content to giving account details on an incoming call, I postponed the call and said I'd phone them later.

But instead of phoning back, I wrote a Secure Message. I asked if the motive for their call was to enquiry about the four £1 payments to my new account in quick succession from different sources. I added, because if that was the reason, I could opt for either providing the information ("justifying myself"), or not provide it and close the accounts ("for the Society's peace of mind").

They did not answer to this Secure Message. Towards the and of the week, I closed one of the remaining accounts. Still no answer - so I closed the remaining one.

After both were closed, a notification of a new Society Secure Message was received. Of course I didn't read it, as I could not care any more.

The takeaway: Some customers have very little patience with random KYC screenings and information requests. Do not tempt them to leave. Especially if they feel they no longer need the accounts. Or do, if you think you no longer need them in turn.

I won't become a member for the third time in my lifetime, that's for sure.