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missbling

Paypal - Acting Fraudulently - Huge Fraud Ongoing

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Hi, I may be on the wrong forum, if there is a more suitable forum would some kind person move this to where it should be. It may be the right place.

 

Happy New Year too you. I have discovered a huge fraud, so huge that it seems unbelievable but I do have the proof and I have pursued it

 

I have always purchased off of ebay, but after Christmas just gone I got an email which said clear your clutter and make some money.

 

I though umm I've got clutter so I listed a few low value items. I've got excellent feedback 100% on 150, My paypal account has been verified and I've passed all the credit checks, never had a problem I buy once or twice a week from ebay on average.

 

The first item sold for 12.00 I got the money via paypal no problem. The next item sold for 120.00 I got my money from Paypal no problem. I made several other sales a lovely man came to collect the table and chairs no problems.

 

I woke up one morning to an email telling me Paypal were placing a hold on the fund in my account for 21 days. Apparently they do this to millions of people everyday.

 

I wrote to them asking them where my money was being held whilst it was being frozen what assurances of its safety would they give me. They refused to tell me. I contacted the Banking Ombudsman this is illegal. If another party holds money in a client account they cannot use it, they cannot lend it to another bank or anyone else, they have to safeguard the money and if they gain interest they have to pay it to you. Ie another cannot benefit from another person's money ie keep their interest without written authority.

 

I wrote to Paypal asking them for the interest they had gained and asked them again where they were holding my money. I have researched this and there are thousands upon thousands of horror stories of people having their money snatched for 180 days or more on the most flimisiest of excuses.

 

I spoke to the FSA and the Banking Ombudsman and they say that they are investigating, but anyone who thinks they have a claim should put it in writing to the Company ie paypal. Think about it all the years 6 years of money kept and used by them. If they have used the money to buy assets or have lent it out on inter deposit rates illegally then all those whose money has been used are entitled to a share of this. If its held in a client account why won't they give the details of it as legally required to do so. If they have nothing to hide.

 

I began researching the legal issues surrounding what they are doing. Most people said oh they are so big who can touch them that's why they get away with it. My answer is so was Goliath, but David beat him.

 

I am looking at putting a team of people together to help me expose this and win back money for all the people affected - would you be interested in joining me do this. I have access to High Court Barristers, I have through my work secured help to put together letters. But if this is going to be successful then a few people all working with our heads together will stand a better chance. To give you some idea there are about 143 million accounts worldwide and over half of those are thought to be frozen or limited or have been frozen at some time. Paypal need to generate income at the moment and by freezing money on more and more accounts for 21 days they are earning millions and millions of other people's money.

 

They try to say its to safeguard everyone, but thats just an excuse to allow them to do it. If you use Ebay, in most cases you have to now use Paypal. If you have a dispute on ebay, ebay are supposed to have their own dispute systems in place, but no Paypal wade in as big brother and seize the money. In pricipal Paypal freezing money if items are in dispute does have some small merit.

 

But they are not doing this. They are withholding the money for 21 days whether there is a dispute or not. Paypal say they will consider giving money before 21 days if they see good feedback and you provide proof that the goods were delivered and the buyer is happy. But its up to you to put your case to Paypal and then its at their discretion. If the buyer gets the goods and does not leave feedback, or the item is picked up in person then Paypal will hold the money even longer in most cases.

 

The banking ombudsman says that they have to stick to strict rules on holding clients money and they have to disclose to you where your money is and if its earning interest what you will get back. They refuse to do this. That is unlawful. Solicitors, banks, clubs, charities etc all hold money on account for others and they have to make it public where the money is and if its an account that pays interest make arrangements to pay the interest to the person.

 

If you are interested in joining me with this. I am not advocating personal disputes, My point is to win back all the money for those withheld illegally and to get interest paid back to all the people who are owed it. If we can get hundreds of people making complaints and asking for interest Paypal will have to act. They can't ignore the law if everyone demands they stick to it.

 

My arguement to Paypal is that this money is earning interest and they are not entitled to keep it for their own gains. Its basically ill gotten gains. They are collecting money and acting as judge & Jury and imposing fines by way of fees.

 

Thank you for taking the time to read. Lets make 2010 the year that we all fight back against this illegal practice.

Edited by missbling

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where do i sign up they have frozen my money for no reason either , its only 145 quid but its the principal , i have about 100 sales and got 100% feedback and they pulled that stunt on me , i was gonna take them to court but i have heard so many stories of them fobbing u off cos they are in another country , i assumed it would be like chasing a dead end , so yes im with u on this SIGN ME UP :)

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I read somewhere (on here or another site ?, I cant recall), a good guide to get Paypal to release your money, alas it does take a while and you have to be strict with them, Ive noticed that Paypal do seem to back down when people such as FSA or FOS get involved.

 

But I agree, it deff appears to be a deliberate [problem] often carried out on people with long perfect ebay/paypal histories, there is actually a famous US court case where paypal suddenly froze a huge amount being collected for a natural disaster, the info on this is on the Wiki Paypal page.

 

Andy

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Thank you for your replies its all helpful. I have been speaking to the FSA who actually recommend that no one deals with them, they put that on their website. They agree their practices are illegal. It seems that because they are so huge and give their offices out as abroad, that everyone thinks they are untouchable. But because no one has really complained properly officially no proper investigation has ever been conducted. So If I can get enough people to join with the complaint then the FSA will act and it may be them that get their account frozen. Especially if they cannot account for every penny they are holding in their client account (if they indeed have one) as the FSA would be forced to act. Thank you I will reply again tomorrow with more information.

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We have about £10K stuck with them on an ongoing basis as part of their "rolling reserve" process (we accept £100k+/month from them). I'd be more than interested in a class action suit and know several other large volume traders who would also probably get involved.

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"Many times i hear people say, "i'd take paypal to court but it's too much hard work now they don't have a UK office".

 

Well thats not true, i'm sure paypal would probably prefer not to tell you about it which is why they don't exactly shout about it but they do have a UK address where court papers can be served, that address is;

 

PAYPAL (EUROPE) LTD

WHITTAKER HOUSE

WHITTAKER AVENUE

RICHMOND

SURREY

TW9 1EH

 

And you can also ring this office on a standard landline number and then press one on the options to be diverted through to the dublin call centre, that way you pay the standars rate for ringing a landline instead of premium 0870 number rates,

 

The landline number is: 020 8605 3000"

 

There you go.

 

I'd like to see a class action suit for UK users and end their illegal practices once and for all.

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fwiw there are several 'paypal sucks' websites: PayPalSucks.Org, Home of the PayPalSucks.Org Cartoons & critical commentary on PayPal.com , NoPayPal UK and PayPal Alternative - Pay Pal Lawsuits, PayPal Complaints & Fraud and Horror Stories: PayPal UK edition there are others, but I'll let you find them, there's sure to be loads of people out there that have the same complaints against paypal.

 

HTH

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I would encourage everyone to complain to the Financial Ombudsman. It costs Paypal UK £500 in fees for every case opened against them.

 

They use poor excuses to hold money for 180 days, mine included and I'm currently threatening legal action and will pursue them through the County Court for my money.

 

Some information here to help with getting your money back:

 

Category: 1 - iWasSuspendedFromEbay

 

FORUM - iWasSuspendedFromEbay

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"Many times i hear people say, "i'd take paypal to court but it's too much hard work now they don't have a UK office".

 

Well thats not true, i'm sure paypal would probably prefer not to tell you about it which is why they don't exactly shout about it but they do have a UK address where court papers can be served, that address is;

 

PAYPAL (EUROPE) LTD

WHITTAKER HOUSE

WHITTAKER AVENUE

RICHMOND

SURREY

TW9 1EH

 

And you can also ring this office on a standard landline number and then press one on the options to be diverted through to the dublin call centre, that way you pay the standars rate for ringing a landline instead of premium 0870 number rates,

 

The landline number is: 020 8605 3000"

 

There you go.

 

I'd like to see a class action suit for UK users and end their illegal practices once and for all.

 

Ah, thank you :)


In knowledge lies wisdom

 

Mo - not even a bar-stool lawyer, but I'll help where I can...

 

 

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I hope I am not too late for this: only last night after much of paypal's dilatory tactics I was informed via email that my paypal account is suspended and they will hold my money for 180 days; money amounting to circa £1000. My calculation is that all the time they had my account under limitation I had lost atleast another £3000 pounds in lost sale. And distress, humiliation and torture is priceless.

 

Count me in if you are still looking for victims to join your class action lawsuit.

 

Best wishes,

 

Humayun Raza

Edited by 42man
email address deleted....

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I'm glad soemone is doing something about this. They methods surely must be illegal.

 

I had been selling good second hand stuff for a few years when PP randomly swooped in on me for no reason whatsoever and "held funds", which btw also include postage costs. I'd sold about 10 items amounting to about £150. Paypal pulled their now famous stunt of sitting on my buyers money until I had sent out and received feedback from them. I was so incensed by this injustice (I had a 100% feedback record), I instead refunded all my buyers their money and told them how Paypal had tried to steal THEIR MONEY and asked that if they still wanted their item, they could send the money another way, which, under the circumstances they obliged and paid me by Google checkout - they must have trusted me more than pp!

 

Issuing a refund is still permitted in this situation, and its one way to stop Paypal keeping our cash.

 

Why should we send out our items whilst Pp with-hold what is initally the buyers money and eventually the sellers money in the end.

 

Shortly after that I transferred some cash into my partners account, about £70. They froze the transaction "due to suspicious activity", refused to tell me what I had supposedly done, and still to this day I have not been able to retrieve my funds as they virtually disappeared in transit, no doubt into the bottomless pit of their own stolen stash of other people's cash. I think they make it near on impossible to get any sense out of their phone operators, who seemed to revel in sending me round in circles.

 

I discovered after that they store isp addresses and detect if more than one account is being used on the same computer. Another nonsense, if only one computer in household of say 6, how many "suspicious activity" accusations are they dishing out in one day?

 

I'm surprised they have got away with their underhand practices for so long, and I'm surprised ebay haven't cleaned it up either, as they must have lost sellers hand over fist.

 

I'd be overjoyed to join any force against Paypal.

Edited by monstermuncher

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I gave up trading on Ebay and using paypal over a year ago because of this type of thing. I wish you the best of luck in your quest and hope you nail the sob's.


Ash.

 

If you think I have helped you, please add to my reputation by clicking the star button to the left.

Thankyou.

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I'm another given up on eBay and Paypal, after 10 years and over 200 positive feedback.

 

I made a purchase which was delivered faulty, the seller argued, so I tried to open a dispute. "This page is not responding" was what I got all day, so the only other option was report a fraudulent transaction, which was working. I stressed in the notes that it wasn't an ft and explained my problem.

 

A week later I got an email stating "We have determined this is not a fraudulent transaction..........." and they paid over £240 of my money.

 

Further emails received irrelevant stock replies and my letter was ignored.

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I'm another given up on eBay and Paypal, after 10 years and over 200 positive feedback.

 

I made a purchase which was delivered faulty, the seller argued, so I tried to open a dispute. "This page is not responding" was what I got all day, so the only other option was report a fraudulent transaction, which was working. I stressed in the notes that it wasn't an ft and explained my problem.

 

A week later I got an email stating "We have determined this is not a fraudulent transaction..........." and they paid over £240 of my money.

 

Further emails received irrelevant stock replies and my letter was ignored.

 

What has annoyed me is when buyers file a SNAD dispute and your Paypal account is debited the amount (normally plunging you into a minus figure) whilst they decide the outcome, this has happened to me twice recently, both outcomes were in my favour, but during the process it is almost impossible to use paypal for either buying or selling so its lost money for them and for you, there is nothing to stop buyers opening SNAD disputes on a whim and they have nothing to lose by doing it.

 

Andy

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Just read through this forum on Pay Pal. I use ebay a lot not expeienced any problems since I opened my account with them 4 years ago and my money was held for 28 days. Will cancel paypal account as from now. good forum you have my support but not sure as what I can offer.

 

This is truly scandalous! i bet pay pal are a goddamn mother corporation.

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Just been looking up pay pal. Well not surprisin is it that pay pal run a credit line. you do not by any chance think that the money in frozen accounts is being used in any way whatsoever to finance thisw credit line ? With credit card rates at an all time high I would think they must be raking it in. Nowonder they are probably the most unpopular people on Earth

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Just had a sneaky thought - can you not put a CD together with a PDF containing information about PayPal's exploits and sell it on eBay as some sort of "survival kit" against PayPal?

 

Not sure how long it'd last but would be interesting to see how it goes.

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Same thing has happened to me. I sold an item on Ebay yesterday for £175 and the buyer paid instantly.

 

Got an email from Paypal as follows;

 

icon_oktoship_29x32.gifOK to send

 

Payment Status: CompletedThe money from the payment you received is being held temporarily for up to 21 days. During this time the money will show as pending and you won't be able to access it.

Your funds will be released after 21 days, providing your buyer hasn't reported any problems. We may be able to release the money sooner if we can confirm that the item was delivered or, if this is an eBay item, your buyer leaves you positive feedback.

To help speed up the process, please take the following steps:

  1. Check below to see if this transaction is eligible for seller protection. For more information, see our tips on how to sell securely
  2. Send to the buyer's address as stated on this page
  3. If your item is over £150 please use a postage service which offers signature confirmation
  4. Save all proof of postage, and email tracking information

I have a 100% feedback on Ebay, never had any problems with sales or purchases.

Yet Paypal are telling me to post the item and they will get around to giving me my money when the buyer leaves positive feedback!!

Bearing in mind that when the payment was made they immediately took their cut.

What if the buyer is one of those people who forgets to leave feedback or does their feedback once every month or two?

This is a great money maker for Paypal,.

I have made a formal compaint and told them I am informing Trading Standards and the Financial Ombudsman.

Where do I sign up for this class action against this bunch of thieves????

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PayPal thoroughly enjoyed recieving this letter from me a while back ;)

 

 

 

PalPal (Europe) Ltd

Whittaker House

Whittaker Avenue

Richmond

Surrey

TW9 1EH

 

Tel: 0208 605 3000 (the number is genuine by the way)

 

Your name

Address

Postcode

 

 

(date), sent by registered Royal Mail

 

Re: PayPal Account registered to: (your email address(s) - how they identify your account)

Letter Before Legal Action

 

You have limited my access to my account and denied me access to my funds on the pretext of non-exsistent "European Union money laundering regulations".

As requested, I have provided you with:

Proof of address;

Proof of bank account;

Proof of identity

 

You continue to hold my funds on a pretext of European Regulations WHICH DO NOT EXSIST.

 

If you fail to restore access to my funds within THIS WORKING DAY I will begin a claim against PayPal (Europe) Ltd and PayPal(Europe)S.A.R.L in the British Small Claims Court.

 

For clarity: I am entitled under multiple Treaties as a citizen of a European Member State to prosecute legally any person or entity wherever based who offers services to me in my country of domicile.

 

I will therefore claim:

 

1) That you have fraudulently and illegally claimed privity in private contracts made between myself and other third parties vis: denying me access to funds supplied to me by unconnected Third Parties for goods and services rendered to them by me, vis (name the individuals or companies).

 

2) That you have fraudulently re - invested my funds against my wishes and fraudulently profited by way of earned interest on my funds during the period they were denied me by you, vis: [ Fraud Act 2006, 4:1: (b) & ©] and [Fraud Act 2006, 4:2 ] and will challenge you to place evidence to the contrary before the Court by way of independantly verified accounts.

 

3) That no contract of use between us that you may cite as relevant is legally binding where it runs contrary to British Law, vis. [ unfair Terms in Consumer Contracts Regulations 1999] and in claiming such in defence of your actions you are seeking to decieve both me and the Court

 

4) That you falsely and fraudulently claim to be holding my funds on a pretext of my criminality, and will challenge you to identify to the Court under which, if any, European Union statutes you proport to be able to withold funds without first having obtained a Court Warrant from the relevent authorities.

 

5) Damages for loss of use.

 

6) Costs of prosecution

 

7) Costs incurred by me as a Litigant in Person

 

8 Interest such as the Court sees fit to award.

 

 

 

 

Post by registered, and send to this email address from your registered email addres(s) ppelc@paypal.co.uk


In knowledge lies wisdom

 

Mo - not even a bar-stool lawyer, but I'll help where I can...

 

 

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