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Paypal query - where do I stand?

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Junior Member
What is the name of your state? I live in the UK.

My paypal account was recently suspended due to a number of complaints, as I was selling non-tangible goods, and buyers were trying to get their money back once they have received the items in question.

Paypal asked that I resovled all complaints against my account, and then faxed in supplier information. I resolved all the complaints that were against my account, and then explained my situation as to why I couldn't fax in supplier information for *suppliers* I didn't actually have.

Paypal then agreed I could skip the faxing in supplier information, and my account was submitted for reinstatement, but it was denied and Payapl said, its time we *parted ways.* This email comes several months after being first suspended.

I have explained to them thatI have done nothing wrong legally, but they say that i have a no-appeal suspension, as I am too risky for them.

As I have done nothing wrong, is there anyway I can threaten them legally into reinstating my account? Its hard to just *part ways* with a company that has a monopoly on the online payment industry.

On a side note, there is still 50 UK pounds in my account(just under 100 USD), which Paypal says they are going to hold for a period of 180 days, in case there are any future chargebacks. Are they allowed to do this as well? Surely the money is in my name, therefore its my say where i want it, and to be honest, I don't want it lying is a dorment Paypal account.

Any advice appreciated.


Senior Member
IF you had any target for your appeal, most of your case would be determined by the user agreement that you acknowledged (assumably in the affirmative). Paypal, and it's parent Ebay, apparently have the legal ability to choose who they do business with...and how they define that relationship. You are just one more of many customers who are caught offguard by Paypal's "alleged" bullying and confiscation of member's money. There doesn't seem to be a good, reliable path in dealing with them.


Junior Member
Surely though, confiscation of money is illegal despite what the user agreement says.

For the sake of being extreme, lets say the Paypal agreement said that if you're account was limited, you would be shot as punishment. Even if you then accepted this agreement, it means Paypal does not have a legal right to shoot you if you're account was limited, because it is against the law, and when accepting the agreement you assume that that rule is void.

Surely the same can apply to confiscation of funds?

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