Paypal strikes again - PART DEUX

slatsme · July 13, 2006 10:15AM

Guys, need your help on this one. I will be calling tomorrow as I am currently out of town, but here's the deal. About 2 weeks ago I get a message from Paypal stating my account is limited (frozen) for security reasons as they need more info. I add another credit card, as per there request, do the automatic phone callback and then two days ago I finally received their 6 digit code to confirm my location, as if the call wasn't good enough.

I am thinking no problem, I will just jump through these hoops and when I get the code and enter it, all will be fine. I then get a message telling me my account is still limited b/c they have linked my account to another account that has issues. I am basically ready to throw my PC or anything else in reaching distance accross the room. I cannot believe this...1st time using Paypal (started about 3 months ago) had no problems, claims or anything and now I have $331.35 (alot of money to me) bucks just sitting there.

Can they legally do this, I mean I have entirely no idea what is going on here and I have done everthing they have asked me to prove it is me.

I am not in a position to lose $331 dollars.

Wanted to pose the scenario to see if anyone can recommend anything.
Thanks

Wizardsguildcards · July 13, 2006 10:27AM

When they did it to me they held my 400.00 for 6 months. They can and will do this it is in their TOS that they can do so for 180 days.

I finally got my money back after many calls. I have never heard of them unlimiting an account once they limit it, even though they say they do. That is why I created my second Paypal account in my wife's name.

My account was limited because I went on vacation and logged in from an IP address in Georgia they felt it had been hacked.

DaBigHurt · July 13, 2006 10:32AM

Just to make sure, you guys left money in the account for them to take?

slatsme · July 13, 2006 10:35AM

They gave me no advance notice that the account was limited - I made 3 purchases one night and woke up the next morning to the "freeze" Once this happens I cannot pull the money.

Like I said, I had been using Paypal for about 3 months with no problems and this is/was my very 1st time using the service.

Wizardsguildcards · July 13, 2006 10:39AM

95% of the time you get hit like that it is right after you recieve a big payment. I got hit while on vacation, I only logged in because I saw a 400 dollar Star Wars toy I had in my store had sold. I logged in to verify payment, I went to the nearest ATM to get them cash out and it would not go through logged back in and my account was limited.

When it happened to my best friend he had just recieved a 280 dollar payment an hour or so before.

If the payment is in transit from your Paypal to your bank and they limit it Paypal will stop the transfer.

storm888 · July 13, 2006 10:49AM

"I am not in a position to lose $331 dollars."

////////////////////////////////////////

Though it does not feel like it when the devil's spawn is
sitting on your money, that money in not yet lost, and
likely will not be lost.

Try to get somebody on the phone who admits that they
are a manager. Be super polite and ask them what you
can do to solve the problem.

Jumping up and down and screaming at them does not work.
At PayPal, passive/aggressive behavior is the norm; turn
that around on them and play the same polite game.

If nothing works in the next 10-days to get your money
unfrozen, hire a lawyer to make the next series of phone
calls on your behalf. If that fails, tell the lawyer to sue
the evil empire.

PayPal will generally back down when the lawyers start
threatening. Sadly, they usually cancel the subject
PayPal account after the threats.

Or, you could just let the process play itself out. More
time will pass, but your money will come home and
you will still have the account, in case you want to
use it in the future.

storm

RichG · July 13, 2006 10:56AM

The bottom line:
If you have not called paypal, do so now! When I had my chargeback filed against me, I called paypal and the representative I talked to was very helpful. Even though you might have $331 tied up, I doubt you will lose it.
Rich

Wizardsguildcards · July 13, 2006 10:57AM

PayPal will generally back down when the lawyers start

They do because they know their policies are wrong, but it is actually very hard for an individual to sue Paypal. The TOS you signed is filled with legal loopholes that makes it nearly impossible.

The only time I know remember where Paypal was sued they never lost nor were they forced to admit any wrong-doing they settled out of court.

Of course you start with the lawyers they will bar you from ever using their service again, but so will most other businesses.

Wizardsguildcards · July 13, 2006 10:59AM

but your money will come home and you will still have your account

They will never unlimit your account. I have never heard of any case where they limited an account and unlimited it. I got my money back after 6 months but my account was still limited and still is to this day.

My best friend has done everything they asked and is in month number 5 of his account being limited.

RichG · July 13, 2006 11:04AM

My account was limited during my chargeback (even though I promptly transfered $1,000 from this transaction, paypal pulled it back/canceled it 36 hours later and put it on hold). However, after I won the case my money was promptly given back to me.
Rich.

RichG · July 13, 2006 11:05AM

once again, if you have not called paypal.......you need to do so NOW! Just like any good baseball manager.......run on to the field and demand and explanation!
Rich

Paypal strikes again - PART DEUX

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