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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.

 

 

I have a PayPal account and due to someone using a stolen credit card back in October 2009 have a rolling reserve implimented by PayPal shortly after that. I wrote again to complain recently and got an email from PayPal today stating

 

'We have removed the 100%30 days Rolling Reserve on your account.Based on

a review of your account and activity, we have decided that a jumpr

reserve of £2000.00 will be applied as follows:

 

Jump reserve: A Jump reserve is the amount of funds that must remain

available in the 'pending' account balance, without a fixed release

date.

 

Where is the interest on the £2000.00 that PayPal will be forever holding amd where is the interest that the rolling reserve has been accumulating since 2009 ? - surely this is illegal???

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There is nothing illegal about holding onto your money and not paying you interest. It's all down to the T & C's, which you agreed to. Ultimately if you don't like it than you don't have to use Paypal.

 

There is perhaps some argument in claiming that these terms breach the Unfair Terms law but would anyone fancing taking Paypal to court and risking costs, this is especially complicated as they are based in Luxumbourg.

 

Andy

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Well, I have just found this post after looking around the forums, and I could write a book on PayPal! However, I will keep it as short as possible!

I had an ebay and paypal account during 2002 - 2006. I had a 374, 100% positive feedback, and used my paypal account a lot for payments. I had one bad experiance during this time, I was selling some palm top computers for about £140.00 each, and sold one, got paid, and then about 2 days later was informed by Paypal that I had been paid by a 'stolen' account. I had already sent the item abroad, but they took the money back off me!

The real problem came in 2006 when I recieved two payments, one of £1200 and another of £1500. These were for the sale of two Rolex watches. PayPal 'froze' my account, saying that I had been dealing with a company called 'Security Arms' in America and dealing with Sub-Machine guns! Yes, its true, can you believe it??? I told them that the amounts I recieved were for two watches I had sold, and that if they cared to look, the buyers were both registered in the UK, and there was no evidence about this company called Security Arms!!!

Anyway, they wouldn't have it and froze the money for 180 days (thats 6 months!). Also, as Ebay and Paypal are the same company, Ebay suspended my account!

I wish at this point I had taken them to court, but I didn't.

I have always been successful selling on Ebay, and due to financial difficulties over the last three years, it has helped bring in a much needed additional income. I have had to resort in opening more Ebay and PayPal accounts, but usually get suspended within a few months. The reason for this is I can bring in a resonably high turnover in a short space of time, this obviously flags up to them, they check my details, and I get suspended.

After phoning PayPal last time, they told me I was a risk, but would not give me any reason or evidence, and after I told them that all my payments and funds recieved were via Ebay, and that I had a 100% positive feedback, was told, "We provide a service, and can take it away anytime we want"!!!

I have written to them, and have yet to recieve a reply, but I have accused them of slaunder, making false accusations, and stated that Ebay and PayPal have a conflick of interest as I can't sell on Ebay without a PayPal account!

This has cost me £30k, and put me in a lot of debt. As I said, its a long story and I have given you just a very brief outline of my continued problems with the two companies. I would also point out that PayPal is also not under the Direct Debit Guarantee as banks and financial institutions in the UK. This was told to me by a member of my bank, LloydsTSB, when they took £400.00 from my account without permission!

How can a company like this be allowed to trade? How can this conflict of interest, that Ebay won't let you sell without having a Paypal account???

 

I would be very interested in your views and comments, and if a member of Ebay and/or PayPal are reading this, maybe you'd like to contact me to discuss this, as if I had the money, I'd sue you for thousands!!!

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if a member of Ebay and/or PayPal are reading this, maybe you'd like to contact me to discuss this, as if I had the money, I'd sue you for thousands!!!

 

Did you ever take this further? I guess not?

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I should of taken them to court when I first had problems with them, however I do not now have the money to do this now.

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I used to run a webhosting company but had to close after paypal decided that selling a Server to a customer to co-locate it was considered digital goods and returned the money to the buyer no problems as the server was with my datacenter any way.

 

HOWEVER

 

I had a volume of sales over £2k per month Paypal have locked £4k in my account and basically ruined my company and refused to unlock it.

 

I would also be interested in a class action if everyone else will get involved.

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I used to run a webhosting company but had to close after paypal decided that selling a Server to a customer to co-locate it was considered digital goods and returned the money to the buyer no problems as the server was with my datacenter any way.

 

HOWEVER

 

I had a volume of sales over £2k per month Paypal have locked £4k in my account and basically ruined my company and refused to unlock it.

 

I would also be interested in a class action if everyone else will get involved.

 

Why did you leabve 4k in your Paypal account,I always get my money out as quick as poss !

 

Andy

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I had a fast growing successful startup that was highly leveraged with lot of startup debt the other partners an I involved had over 40k of transactions that could not go through because paypal starting with rolling reserve an later totally suspending transactions the excuse they used was something to do with little history on our business an needing verification documents.Suffice to say it killed the business mostly due to paypal stopping the sales transactions from going through and the ones they did let through paypal were withholding the money.

I don't know how they can get away with it. How can the FCA allow this behaviour to UK businesses that depend on companies like paypal to transact?

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Sorry to resurrect an old thread, but I to am anxious to 'take on' PayPal for various reasons I won't bore you with. Has there been any movement on this? if so, have you developed a Facebook group, website etc? ... Almost everyone I| know has had negative dealings with PayPal and I can guarantee you at least a couple of hundred followers on FB if you are still going ahead with this.

 

Do please keep us updated :)

 

Regards

 

Jo

Edited by Outdoor_Joe
hit send too soon :/

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As said, this site uses Paypal!

not sure of the relevance ?

 

Are you saying that .. this site uses Paypal so ..... 'it must be OK' ... or ... 'don't rock the boat' ... or ... 'it's all in hand' ... or ... watch your P's & Q's ? .... is there some legal thing I'm missing? Sorry but when it comes to things financial, I'm a total nube so you may want to be a little less obscure :/

 

Whatever the answer,I'd still be interested to hear from the OP or anyone else to see if this is being taken forward anywhere. Whether this site is in bed with PayPal or not, I'd still like to get involved in any paypal takedown. ;)

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not sure of the relevance ?

 

 

raydentinu, I don't see the relevance either?

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just a comment! observation!

however I would have thought if there is a general vast consumer problem with them, why would CAG be dealing with them!!!

its like advising people with problems at a particular bank and then actually keeping your account with them!

I have never has any problem with paypal, or ebay ( so far ), in fact the opposite, but that is in context of a buyer, as they helped enormously with potential fraudsters.

never had a problem at all as seller either, but that is as private seller not a business. Use them all the time.

Ebay and paypal one and the same and are vast, based in the states and as such have their own rules which by and large appear to be fair ( they are biased towards buyers but that's to keep confidence up ).

I will probably change my mind if something goes pear shaped in the future.

Anyway good luck with any action you might want to take.

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Paypal owe me around £1,300 and have done for about 3 years now. Everything was fine when I was buying, and selling low priced items. Paypal receiving limits were all lifted, ebay hold was gone as I was not a new seller, never had negative feedback either buying or selling. I then sold my laptop as I was in a sticky financial situation and bam. Paypal account limited. They wanted proof of who I was so I sent off everything they asked for.

 

Then they decided that I needed to supply tracking info for recently sold items, which I had already done. After speaking to a rep on the phone and telling her I had done this she lifted the limit. I tried to withdraw, and bam. Another limit on me within 5 minutes. They wanted proof that I owned the laptop. Luckily enough I keep most receipts so after searching, I sent them a copy of the receipt. I thought they can't possibly ask for anything else, and I was right. Because they could find nothing else to hold my cash for(I'm convinced they wanted me to not have the documents they asked for), they then decided that my account was linked to another account that had "outstanding issues". However they would not tell me anything about this because of "data protection". Right, so I am linked to another paypal in some mysterious way, you can't tell me anything about it, yet you are holding MY money because of this other account. Utter crap.

 

Eventually after months of attempting to get a reply off an actual human instead of an automated reply my account was closed "permanently" and funds withheld.

 

2 days later my ebay account was closed, no reason given.

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then write to them at their UK registered address and tell them that you are goping to take legal action. Whilst you are about it write to Jeff Prestridge at the Daily Mail finance section and see if he will take up the matter.

If a financial or other service believes that you are committing financail fraud or money laundering then they have to do as they have done, you should check with CIFAS to see if there is a marker on your name. Tell them about the linked paypal accounts.

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don't think that covers UK at all.

 

The case reference is; Zepeda v. PayPal Inc., Case No. 5:10-cv-02500 SBA, in the U.S. District Court for the Northern District of California

 

Would need to scrutinse the judgment closely to see if it makes any reference to residents overseas (i.e. in the UK) having a claim, but I would have thought it unlikely.

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