PayPal settles customer suit

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They Froze my account... twice...

The first time Pay Pal froze my account with about $6000 in it, they said while they made an investigation, for security. They asked me to send them documents such as identity, proof of address, etc. which I sent to them. However, while my account was frozen, they continued to accept other people's money to me... and then it was frozen also! This meant I could not use the money they were sending me to buy the merchandise that they were paying for. I asked Pay Pal to please not accept any more payments while my account was frozen, but they continued to accept payments from my customers until my account reached about $14,500, ie, Pay Pal accepted about $8000 in a period of a few months, which I couldn't touch and which customers expected to receive merchandise for their money. It was like a "black hole" that sucked money into it, which they were happy to receive, but not to return.

Finally, they stopped accepting money, and a month or two later they unfroze my account...

Two years later, they froze my account again, with $4805, again to "investigate". This time they said they were closing my account permanently, but they would retain the money in the account for 180 days, after which they said I could "request" the return of my money. I did not "request" that they should return my money because according to their conditions, if they would close an account they would immediately return the money. They did not return my money for 11 months, during which time of course they used or benefitted from the use of my money.

The lesson to be learned from my experience is NEVER LEAVE AN EXTRA PENNY IN YOUR PAY PAL ACCOUNT, and definitely NEVER USE THE PAY PAL DEBIT ACCOUNT, because they will bounce payments in the event that they arbitrarily decide to freeze your account. It doesn't matter if your account has thousands of dollars, as mine did, and there were transient charges of a few dollars, they refuse payment on your debit account. I always kept $2000 in my Pay Pal account so that I could use my debit card without any problem. Big mistake... Never do that.

Other than that (if that isn't enough,) I had no problem with Pay Pal. I think the fact that they returned my money after 11 months, long after they did their investigation, points to the fact that I never misused their service, I never had any problem with any customer, and I never did anything illegal.

Posted by: etoussier   Posted on: 07/08/04 You are currently: a Guest | Members login | Terms of Use

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