Is the 21 day hold really legal?

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How Does PayPal Make Money With My Money?

According to the San Francisco Chronicle, there are approx. 100,000 complaints outstanding at PayPal (Are any of these yours?). In many instances disputes can run on for months leaving people frustrated and out of pocket as they are unable to access their accounts. So what happens to the millions of dollars tied up in frozen accounts and disputes? Well, here is a clip from the San Francisco Chronicle that basically sums it up:

U.S. District Judge Jeremy Fogel of San Jose refused to dismiss a lawsuit that seeks class-action status on behalf of thousands of PayPal customers nationwide. A common allegation is that the company brushes off or stalls customer grievances for months and meanwhile freezes the customer's account and pockets the interest (So that's how they make their money!). No wonder they freeze so many accounts!

Can PayPal legally place a hold on money that came from selling an item on ebay?

I sold an item for $200 ($193.60 after palpal had taken their fee) and as soon as the buyer paid, PayPal placed it into a 21 day hold. I have a 100% seller rating and this is the first time I have been withheld from my money. I would have received a bad rating if I held off from posting the item until I had access to my money. Basically Paypal have found a way to give themselves an interest free line of credit and charge me a fee at the same time.

Surely this can not be legal? I didn’t agree to let them hold my money for 21 days when I signed up nor did they tell me they would.

Posted: December 8, 2014 at 7:07 pm

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