PayPal froze $14,600.00 & refuses to return it!

[otter214]

PayPal froze $15,040.26 & refuses to return it!

What is the name of your state? MN

I have a real problem on my hands and could use some legitimate (not sarcastic, please) advice.
When I started a home-based business recently, I used PayPal to receive online payments and also to pay my suppliers and shippers. Basically, it was my business account. I had been using PayPal for many years, so I thought nothing of it. Well, when my "activity level" picked up, they froze the account because they said they needed to verify that I truly had the inventory to fill my recent orders. No problem there. I understood their concern, and was happy to provide them with the bill of sale from my supplier, the UPS tracking numbers verifying the merchandise had arrived, verifyable tracking numbers showing the products had been delivered to my customers & signed for, AND emails from my satisfied customers saying they were happy with their items (& thus no chargebacks to worry about). Sounds like ironclad proof that I'm legitimate, doesn't it? Well, the response from PayPal was to *close* my account, with a note saying they could no longer have me as a customer.

What????

I did manage to contact a very sympathetic customer service fellow at PayPal, who listened to me, double checked my evidence (most of which was right there inside my PayPal account) and said, "Well, I have looked at everything you said, and found that it is all true. Unfortunately, I don't have the authority to help you. However, I have documented everything we talked about and I will personally file an appeal on your behalf."

PayPal's next response?
They sent me an email saying "This matter can not be appealed."

In other words, they intend to keep all my money! I have done nothing illegal, unethical, or otherwise hinky. In fact, I have exceptional feedback from my eBay sales (which PayPal knows about) and can demonstrate (even from inside my PayPal account) that I have done things like issue refunds when someone was not completely satisfied, etc. I have a sterling record in my business and personal life. YET....they have conveniently decided they would prefer to keep my $15,040.26 for themselves and there doesn't seem to be anything I can do about it.
Yes, of course, I'm filing a complaint with the Attourney General's office, and of course, I'm looking into a lawyer. But we both know they have more money than I do when it comes to litigation.

That money is all I have to pay my supplier's with and run my busines, which they have effectively shut down. I'm sure they are hoping to use my PayPal-emposed inability to pay my suppliers as "evidence" that I am hinky after all and therefore they were justified in keeping my money. To add insult to injury, they had the audacity to send me a bill for over $500.00 in PayPal fees! Now, if PayPal currently *has* all my money - how am I supposed to *give* them my money, eh? Yea, I know, just more "evidence" for them that I'm a crook. Trouble is, I'm NOT a crook....just being treated like one by PayPal.

Can anyone help me?

Thanks.

 

[Dandy Don]

They have never given you any official reason or explanation as to why your account was frozen?

 

[dmalone]

I hate to be so blunt, but there is really nothing you can do.

You are just one of thousands of people who are getting defrauded by PayPal.
This is how PayPal makes the bulk of their profits. They will freeze the accounts of those of have a large balance in their account and seize it. They will never give you a reason.

PayPal is not a real bank and since it is stated in their user agreement that they can seize your money at any time for any reason, there really isn't anything you do.

You could sue them but I have not heard of anyone succeeding in the efforts to reclaim their money.

I know this is not what you wanted to hear. This has been going on for several years. But for some reason, PayPal is still able to get away with defrauding people out of their hard earned money.

I wish you the best of luck in getting your money back...

 

[Dandy Don]

Don't give up without a fight. PayPal's problems have recently been featured in national media and there are others like you who are unhappy. File a complaint with your state's attorney general so he can investigate on your behalf--I'll bet you get your money back!!

DANDY DON IN OKLAHOMA ([email protected])

 

[gbuj21]

I may be able to help you......

Being a regional sales manager in the credit card processing industry for the past 6 years, I may be able to give you some advice. Are you still seeking answers relating to the Paypal incident?

 

[gbuj21]

I'm back again......

Louisiana--

I'll just go ahead and post a little information relating to the frozen funds incident. Hope this helps out!!!

When you mention the term "activity level" I suppose you mean "increase in sales", right? If so, verification of inventory to fulfill your orders shouldn't be the question. Verification of sufficient inventory is usually relevant before a merchant is approved. The real question here, to my knowledge, should be related to the necessary documents the processor needed to verify these transactions and if all documents were received & approved. Usually in order to release funds that are frozen, V/MC requires proper documentation: signed receipt, unsigned receipt, the actual invoice, etc. Once you forward this information, your money should become available, if not, you should be notified in writing the details of additional documents the processor needs so you can send them. Also, request to review the original application you signed with Paypal and notice the "estimated volume of sales figure" or the "average sale amount" filled in. These figures may be affecting your account as well, your just not being told this information. Adjustments may be necessary of these estimated dollar amounts due to the activity level on the rise. If your avg ticket amount on your merchant application stated $50 and you run a transaction for $200, chances are, your money is frozen and they'll need you to send proof on the products being sold or changes in the nature of business.

Let me know how it goes, good luck. Remember, unless these transactions were a fraudulent activity, it's your money!! In conclusion, I'm pretty sure any matter of such can be appealed, agree?