Where do I stand legally against Paypal?

Discussion in 'Legal Issues' started by whateverandever2, Sep 1, 2006.

  1. #1
    Sure everyone has heard least one bad story regarding these people.

    My story is this.

    I opened an account and straight away got sent $400 that a friend owed me, they then limited my access and said they require me to send photo id and proof of address - I did this and then got another email saying they need invoice proof and proof of shipping with regards to the $400 - Now, I didnt sell anything, I didn't ship anything, so how can I do that? There response was basically 'That isn't our problem' - The inept fools.

    My account is now frozen, can't access my funds and am losing out on earnings and also cant pay my hosting bill right now because of it.

    Do I stand anywhere legally?

    Thanks
     
    whateverandever2, Sep 1, 2006 IP
  2. Design1

    Design1 Active Member

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    #2
    Honesty is the best policy! You could explain your situation to them and have your friend do the same. Or you could refund the funds from your friend and just snail a check. From their standpoint this probably looks VERY suspicious being a new account. I know PayPal receives a LOT of fraud and they are doing what they can. I've had to deal with their support people before and they have been a little slow and not always delivering the response that I desire, but in the end they aren't too bad to deal with compared to others. (I will never use StormPay again!!!!!!!!!)..

    Best of luck to you!
     
    Design1, Sep 1, 2006 IP
  3. cormac

    cormac Peon

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    #3
    I am going through the exact same thing. They sent me an email and within 24hrs of that they froze the account.

    They wanted me to update my profile but my account doesnt support international numbers - they still cant grasp that concept. I have asked them to shut my account because I am no longer in the US and to transfer the funds to my US bank account which was the account I used to apply for paypal at the start, they still wont. They wanted me to fax them and print off a page that was supposed to be in my paypal account, doesnt exist but they dont understand that either.

    Now they want me to provide proof that I transfered money from my own bank account to paypal but also to provide proof of three transactions from DP members that I did business with - they are requesting emails and what my relationship is with them.

    I dont mind the fact they forze my account, they have to protect their business from fraud. What I do mind is their support is a complete joke and are no help at all.

    They said to you it isnt their problem but it is. At the end of it the money either belongs to you or your friend, paypal simply cant keep the money from a legal stand point. I wonder how they would respond if you requested they send the money back to your friend? bet you they wont.
     
    cormac, Sep 1, 2006 IP
  4. whateverandever2

    whateverandever2 Peon

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    #4
    true, I understand why they are doing it but they dont seem to be accepting it which is what is annoying.

    My other concern is even if they do accept it in the end next time I recieve large funds or a lot of funds at once I will have to go through this BS again.

    I dont really sell anything, any money I recieve is either from friends or if I have done a little bit of web work for someone on a site.
     
    whateverandever2, Sep 1, 2006 IP
  5. whateverandever2

    whateverandever2 Peon

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    #5
    Exactly, thats why I am wondering where I stand.

    I heard a rumour that some new laws will be coming into place for Paypal where they can't freeze an account for more then a week, only read that tho so can't confirm it.
     
    whateverandever2, Sep 1, 2006 IP
  6. cormac

    cormac Peon

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    #6
    I know this is not uncommon as I have spoken to a few people who had experienced this, they no longer use paypal.

    All I can suggest is keep on their back and send an email and phone them everyday.
     
    cormac, Sep 1, 2006 IP
  7. Halobitt

    Halobitt Well-Known Member

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    #7
    Just think of the interest Paypal must make on all the funds from locked accounts. No wonder they want to lock accounts for as long as possible.
     
    Halobitt, Sep 1, 2006 IP
  8. eddy2099

    eddy2099 Peon

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    #8
    Well, new accounts with big money transfers would usually look suspicious because Paypal could have been abused for money laundering especially if the account is unverified.

    What you can do is get your friend to create and generate an Invoice. Get your account verified.
     
    eddy2099, Sep 1, 2006 IP
  9. whateverandever2

    whateverandever2 Peon

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    #9
    'An invoice is a commercial document issued by a seller to a buyer, indicating the products, quantities and agreed prices for products or services with which the Seller has already provided the Buyer'

    I never sold anything whatsoever, nor did I buy anything and same goes for him, no products was involved nor services, it was merely money he owed me.

    And I am verified, I have done all that as well.
     
    whateverandever2, Sep 2, 2006 IP
  10. geomark

    geomark Peon

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    #10
    I went through this BS some years ago. Their customer non-service refused to resolve the issue. I ended up finding a insider sort of person and faxing him the stuff to get my account unfrozen.

    They lost a class action suit a couple years ago over this stuff. Can't believe they are still doing it. Time for another law suit? Go get 'em.

    I still use them for receiving smallish payments only because there hasn't been a better alternative (hoping Google Checkout kills PayPal). But I withdraw funds right away and keep a zero balance. They are crooks and can't be trusted.
     
    geomark, Sep 2, 2006 IP