Paypal limitations Scandal

YOUR PAYPAL ACCOUNT IS LIMITED?

You are not alone. Alot of people are being hit with this right now... the rumour is that ebay wants to reduce the number of smaller sellers and this is a fairly consice and easy way for them to do it

SO heres a Guide on what to do if your paypal account is limited... or maybe I should say WHEN it is limited and your hard earn cash get put in gaol!

This guide is mainly for UK users...

First lets take quick look at Paypal's usual method of operations realting to the Limiting of accounts.

1. Identify an Account. Usually someone who has just transfered into Paypal a fair bit of money £300+

2. Apply limitations (no more money can be sent from your account)

3. Get the user chasing there tail for a few months while they ask for further information from you. Whatever you supply (ID, Bank info, Social Security details, shipping) it will never be enough. They only request any of this as a diversion tactic. It keeps you busy and plants the seed in your mind that they have a geuine reason to question the security of your account and hold on to your funds for months.

4. 180 days up? Did you really think you would get your money back? They will remove the limitation and as soon as you transfer the money out, the limitation will be reapplied, the transfer will be reversed by paypal and you account could possibly be limited for, you guessed it, another 180 days.

5. Go back to 1.

WHAT TO DO

STEP 1. Damage limitation

When Paypal lock your account they no longer allow you to remove the Bank or Credit card information you have stored on file. There is a good reason for Paypal doing this (although as an account holder it is definately BAD for you).

This is so, if they choose, they can take yet MORE funds from you bank or credit card and then lock these into your frozen account. Surely not right?

I guarentee it. It is exactly what they tried to do to me (and its right there in the small print of that user agreement you signed up to).

- Contact your bank, cancel your direct debit instruction with Paypal.

- If you also have a direct debit instuction with ebay, cancel that with your bank too.

- If you have any credit cards linked to your account, call the issuers and explain the problems. My issuer agreed to cancel the card and send me a new one. If your card issuer wont help, simply cut the card in half, conviently lose it somewhere and then report the card as lost.

OK, WELL DONE... PAYPAL CAN NO LONGER TAKE ANY AUTOMACTIC PAYMENTS FROM YOU WITHOUT YOUR PERMISSION.

STEP 2. Reduce the funds held

It is true that the money in your account cannot be transfered out or used for purchases. However it can still be refunded.

If the source of the funding is from an ebay/online purchase which you have NOT yet sent, then simply refund the payment. Contact the buyer and explain that Paypal are not allowing you access to the funds and request an alternative payment method or request to cancel the transaction.

I successfully managed to reduce the money locked in my account from £600+ down to £80.

STEP 3. Complain, Complain, Complain

Paypal has a handy link on there site which allows you to file a complaint against paypal (you may have seen it) but guess what? THE LINK USUALLY DOESNT WORK lol...

But here is something that might cheer you up?

In order to provide finacial services within the UK, operators (Paypal) require, under the terms of the FSA which includes the requirement to mediate through the ombudsman service. The service is funded by the members on a case by case basis.

Due to this the minimum case administration fee is currently set at £360, which must be paid by Paypal regardless of outcome!

Thats right, regardless of whether a decision is made in the complainants favour or not, Paypal is required to pay the Ombudsman a minimum of £360 for each & EVERY case investigated.

WHAT TO DO In cases of limitation?

If you believe Paypal have taken any actions that have had the effect of costing you money due to "OBFUSCATION" (This is where any undue delay by Paypal in resolving any issue means that you are effectively COST money by Paypal's action of depriving you of your funds, your income and in effect increasing any consequential costs.. Overdrafts, Bank fees or interest)

Remember the pen IS mightier than the sword

COMPLAIN TO THE FINACIAL OMBUDSMAN.
Website is : http://www.financial-ombudsman.org.uk/

Here is a complete check list on how to do if you require further info:
http://www.consumeractiongroup.co.uk/forum/other-institutions/2063-procedure-info-problems-paypal.html

REMEMBER those people We elected to run the country? Why not write to your MP... You pay taxes for them to listen... I have also taken this up with my MP who is NOW complaining on my behalf - nice bloke!

http://www.parliament.uk/mpslordsandoffices/mps_and_lords/alms.cfm

Further links waiting to hear your story:

http://www.bbc.co.uk/watchdog/gotastory/
http://www.moneymadeclear.fsa.gov.uk/pdfs/complaint_ink.pdf
http://www.consumerdirect.gov.uk/after_you_buy/making-complaint/complaining-in-writing/
http://www.consumerdirect.gov.uk/after_you_buy/making-complaint/template-letters/DSR_services/

 

Hey .. any one does know about "ombudsman service" equivalant in INDIA ? where do we need to report this in india ??? Any one has such information , please PM me.

 

This will never be changed and I don't understand PayPal at all!
It seems it's not safe to use them because you can lose your money any day, and yet people keep using it. Because of people that use it, I must use it too and I hate it