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Paypal have been closing and freezing accounts in the UK and EU citing US laws and regulations

which it is trying to impose here in the UK and EU.

 

This I believe is illegal.

 

I have located what I believe are two pieces of legislation to back this up:

 

THE PROTECTION OF TRADING INTERESTS ACT

Link: http://www.law.stetson.edu/lawreview/media/u-s-secondary-sanctions-the-u-k-and-e-u-response.pdf

and the following EU legislation:

 

Council Regulation (EC) No 2271/96 of 22 November 1996 protecting against the effects of the extra-territorial application of legislation adopted by a third country, and actions based thereon or resulting therefrom

 

Link: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31996R2271:EN:HTML

 

My question is

can I use both pieces of legislation in making a claim against Paypal for the closure of an account in the UK

when no UK law has been broken in the use of the account?

This being in a small claims action for damages caused by such a closure

and asking for the reinstatement with no penalties of the account closed?

 

Also does anyone know of any other legislation that can be used in regard to unfair business practice

in what Paypal are doing in trying to enforce foreign law in the UK where such law has IMHO no jurisdiction?

 

All comments and input are welcome whether positive or negative.

 

Edited by aburobert
typo - spelling mistake

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What is the reason they are giving to close accounts?

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The reason they are closing accounts is because items on the US embargo list are being sold.

 

For example list

a Cuban postage stamp for sale to a collector and they will freeze your account.

 

Here it is perfectly legal to sell items that the US authorities have embargoed.

Countries include Syria, Sudan, North Korea and Cuba for certain and possibly Iran, Ethiopia, Libya etc.

 

These embargoes are due to the US Helms-Burton Act that caused an international stink

when it was enacted in the USA because the USA was attempting to foist its laws onto others.

 

The legislation quoted in my original post was enacted to counter this.

 

My whole point being that we live under UK law - we are not part of the USA.

So why should US companies think they have carte blanch in trying to impose US law on us.

 

Paypal is trying to use US laws to regulate its business in the UK.

 

For example they have closed an account of a UK citizen for selling a Sudanese collectable banknote to another UK citizen.

 

Perfectly legal under UK law!

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Just to add they are on Watchdog tonight as well which might be interesting (15th May)

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Can anyone advise whether the legislation quoted in my first posting can be used in the Small Claims court? I do not want to take any action against Paypal just to end up with egg on my face!

 

Also can anyone point me in the direction of any unfair business practice legislation that they may think could be used against Paypal in their arbitrary closing or freezing of accounts thus denying the account holder access to their funds?

 

Can a SAR be served on Paypal in an attempt to find out who and why ordered the closure or freezing of any account - and also to try and find out what information (and the sources) they hold on an account holder. I gather any information garnered by Paypal is also held in the United States so would this also be revealed?

 

Lots of questions but I really need the perspective of someone else who can look at this without a jaundiced eye and advise. If I am bashing my head against a brick wall then I would rather someone bluntly told me this with their reasoning.

 

As always all comments and observations welcomed.

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Any thoughts anyone?

 

I notice this thread has had a lot of views and I do know that Paypal cause a lot of problems to many with its arbitrary decisions to limit or close accounts often with no notice or regard to the account holder. Myself I have trawled through and read most of the Payal threads on CAG but am really not much the wiser. However Paypal have backed away and reinstated my account after a threat to take action using the two bits of legislation outlined in my first posting on this thread. So I do not need to take further action at present.

 

This does not mean that there will not be further problems down the line with this company as they view themselves almost as untouchable. IMHO they have terms and conditions that are draconian and extremely damaging to businesses when enforced without warning and with no idea why they are implemented except for a nebulous phrase like 'high risk' without defining high risk or stating what action caused this high risk.

 

So I am still interested to know if there is any legislation regarding unfair business terms or practice one can use against this company when they take actions that IMHO opinion cannot be justified. Using FOS or trading standards is a waste of time as they take too long to do anything and in the time they take to deliberate a business can go down the pan or be severely affected by having its cash flow strangled and reputation badly damaged as account limitation/closure is often viewed as being caused by some form of financial skullduggery.

 

Still looking forward to any comments or views or helpful pointers. Also It would be interesting to know if anyone has had success against Paypal in a small claims court (or indeed any court).

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I am surprised that there have been no reports of successes against Paypal for many of the arbitrary actions that they take with regard to money that is not theirs. I am wondering whether it is worthwhile taking action against this monolith should I fall foul of them again for any reason. This dearth of any positive news hardly inspires one to fight these people as there seems to be no precedent of successful action against them.

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Not too sure this is the right forum - if not please shift to a more suitable one.

 

I came across this article when researching successful court actions against Paypal:

 

http://www.independent.co.uk/money/spend-save/simon-read-is-paypal-right-to-freeze-customers-accounts-2360058.html

 

Is there an easy way to locate/find this case so it can be quoted in a future action against Paypal.

 

Will writing to Milton Keynes County Court elicit any response? Or perhaps contacting the Independent?

 

The case took place in 2011 so is already becoming ancient history!

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Hi

It seems that there is no transcript of the court case mentioned so I have no idea where you would get the info from. You could apply to get a copy of the case from the courts but that is very expensive. That would be a pointless exercise IMO as this was a county court case so while it could be persuasive in other cases, it does not set any precedent.


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I wonder if you could track down the young woman who brought the case against PP by using Social Media ?


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The reason they are closing accounts is because items on the US embargo list are being sold.

 

For example list

a Cuban postage stamp for sale to a collector and they will freeze your account.

 

Here it is perfectly legal to sell items that the US authorities have embargoed.

Countries include Syria, Sudan, North Korea and Cuba for certain and possibly Iran, Ethiopia, Libya etc.

 

These embargoes are due to the US Helms-Burton Act that caused an international stink

when it was enacted in the USA because the USA was attempting to foist its laws onto others.

 

The legislation quoted in my original post was enacted to counter this.

 

My whole point being that we live under UK law - we are not part of the USA.

So why should US companies think they have carte blanch in trying to impose US law on us.

 

Paypal is trying to use US laws to regulate its business in the UK.

 

For example they have closed an account of a UK citizen for selling a Sudanese collectable banknote to another UK citizen.

 

Perfectly legal under UK law!

 

 

Just a comment, this will happen a lot and will be legal when the TTIP trade deal between the US and Europe takes place.

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