If you do some searching there are tons of PayPal nightmare stories just like this one (This is a real story):
“I had my PayPal account closed recently. I had the account for about 12 years and had never done one thing against policy or rules. My wife responded to a company to do drop shipping and she got scammed out of hundreds of dollars. PayPal closed my account just because we had the same address! Each of us maintains our own bank accounts and have separate computers and have for years. She did no wrong and she was shut down by PayPal in addition to her being scammed. AND PayPal closed my account when there were 0 infractions in my account – just because they noted the mailing address.
The both of us have talked to PayPal on the phone numerous times. We have been told conflicting information and have been treated very rudely by most PayPal reps – although several were very polite and tried to feign being helpful. In the end there is no recourse. Today I was literally told – “You are welcome to look around for another payment processor…” The bottom line is that they do not care. I told the guy on the phone today that he was just doing his job and watching the clock for his breaks and quitting time and had no real concern for me at all.
For years I have talked about how great PayPal was and have recommended them to many many family and friends. Never again. Yeah, use them if you have to but try not to keep a large balance in your account. I have also heard a few horror stories but I more or less discounted them and thought ‘oh well they did something wrong’ but now that it has happened to me and I have done some research I find that there are a great many who were shut down for no good reason.
Now here I am waiting 6 months for PayPal to release MY OWN MONEY to me! They are saying they have hold it in case there are any disputes. That is garbage! There will be no disputes. I wonder if they will be paying me interest on that?”
“The law firm of Freed & Weiss LLC has filed a lawsuit against eBay and PayPal on behalf of their clients, Ronya Osman and Brian Patee. The lawsuit charges that PayPal’s practice of “holding” funds for up to 180 days in the accounts is fraudulent because of the “systematic and arbitrary manner in which the freezing is done and the lack of information shared with affected customers.”
The lawsuit claims PayPal is holding $1500 of Plaintiff Ronya Osman funds, and had held $750 of plaintiff Brian Pattee’s funds from about September 2009 to March 12, 2010.
The lawsuit says PayPal’s actions violate the Electronic Funds Transfer Act, stating that PayPal is a financial institution within the meaning of the EFTA, and that plaintiffs are consumers protected by the EFTA. “Defendant has been unjustly enriched at the expense of and detriment to Plaintiffs and the Class by wrongfully collecting money to which Defendant, in equity, is not entitled.”
source – http://www.auctionbytes.com/cab/abn/y10/m06/i08/s02
The complaint is on the law firm’s website in PDF format ~ www.freedweiss.com/10-05-12-1-Paypal-Complaint.pdf“
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