PAYPAL holding money for more than 180 days.

[MrMinaj13]

i hope i have posted this in the right section.

 

Paypal in January limited my account (for god knows what reason), and have been holding onto £900 ever since.

 

They said it would be released after 180 days, however it still has not been released, are they legally allowed to do this?

 

I have been conversing with them on facebook but they take forever to respond to messages, there seems to be no other way of getting hold of them!

 

i have tried calling a couple of time to no avail.

 

i just want to know what to do in the instance they tell me they will not release the funds.

because its very strange that after this long period of time has passed they are STILL on hold.

[dx100uk]

why are they holding the money?

[MrMinaj13]

why are they holding the money?

 

When they limit (ban) accounts, they hold the money for between 30-180 days in case of 'chargebacks' after the 180 days have passed the money is supposed to be available for withdrawal.

[aburobert]

Firstly it is your money not Paypal's.

 

 

The legality of what Paypal does in holding onto peoples' money without their consent has not been tested in a Court yet AFAIK.

 

 

They are supposed to be a middle man facilitator enabling payment to be made using their service to another for which they take a commission.

 

 

They have slowly attempted to interfere in transactions about which they know little using a standard catch all formula

- which it looks as if you may have fallen foul of.

 

 

The refunds they make when they suspect (not prove) irregularity are often done without the account holders consent and sometimes even after any dispute has been settled.

Trying to get money back in such circumstances is nigh impossible.

 

Find their current registered UK address from the Companies House web site

then send them a recorded/signed for letter asking why they are holding on to your money

and if they do not have a valid reason for doing so you will issue a claim against them in your local County Court to reclaim what is yours (a letter before action).

 

 

But do not not do this unless you intend to carry through.

 

 

Make sure you print off the account details to show where and how your balance was arrived at and how long Paypal has frozen your funds.

 

Paypal, if they run true to form, will probably ignore your letter

which means you need to then issue the claim against them.

 

 

Once they receive the County Court Claim form they will refund your money

unless they have good reason not to do so.

 

 

Paypal do not do court

- at least they have not done so so far!

 

 

It may not go as far as this as Paypal will probably refund long before any of this happens with any luck.

 

It does mean your Paypal account will be closed

- but so long as you have a different email address and banking details

you can open another account if you wish by slightly tweaking a few other details.