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Account Limited and Canceled

PayPal put a “Limitation” on my account for absolutely no reason. I was unable to send money, received money, or even cancel my account if I wanted. I called them and they demanded a copy, A PHYSICAL COPY, of my Social Security card! I denied their request which I thought was illegal in the first place. Today I called to follow up because i was still “limited” and they told me, in so many wonderful polite words, that they were “parting ways with me” and to use someone else. I guess I should count my blessings for not having to deal with this incompetent company any longer but I am scared that they have so much of my personal information.
Apparently this has been happening to quite a few people from what I can see on the Internet.
If there is ever a class-action lawsuit involving this I will 100% be on board! Please keep me informed. I’m blown away in disbelief!

Posted: May 22, 2012 at 3:09 pm

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4 thoughts on “Account Limited and Canceled
  1. Vic on

    Best be happy all Paypal did was limit and cancel your account. That is the best thing they could have done for you. Now you have the opportunity to process payment with a REAL processor that follows rules and regulations of the banking industry, unlike Paypal. Paypal likes to limit accounts for no apparent reason and make crazy demands on a whim or hold your cash for indefinite periods of time. Good riddence Paypal!

  2. Hanna Krom on

    Anyone would be crazy to send such information to PayPal as often as they get hacked and lose information that is faxed to them.I don’t thing there are any lawsuits that can help you with this because PayPal always plays their trump card, their user agreement. By using Paypal and agreeing to their user agreement you pretty much sign away all your rights to fair treatment. I closed my paypal account because I got tired of dealing with them.

  3. Gary on

    Be happy they closed your account. It took me over 6 months to get my account closed. They limited my account and that didn’t work for me, so i thought i’ll just close it. yah not as easy as i thought. I’, now processing with a REAL company and am so happy!

  4. Andrea on

    I have a website where I sell software.

    My software consists in indicators and robots for trading the Forex (currency exchange) market.

    I’ve been using Paypal for more than a year without any problem. Last month during the launch of my last product that was a great success, Paypal decided to lock my account with more than $29.000 in it.

    It was Sunday. So I couldn’t talk with anyone as Paypal offices are closed here in Italy during the weekend.

    On Monday I called them and they told me that the reason I’ve been locked is because my business is too “risky” for them. I explained them that I sell software that’s been developed by me so nothing illegal.

    Just to give you and them an idea of how “risky” I am, I had 3 refunds so far (for ALL my products) with over 1000 sales. 2 refunds happened after people saw that Paypal locked my account thinking that I was about to “run with the money”.

    It took me a week to find another merchant account and restart sales. It took me so long because I hoped that seeing that they were wrong they would have unlocked my account. But nothing. They don’t care about my explainations. All my email and telephone calls were ignored.

    Now if I call the call center, after they recognize my number, they hang up. I tried yesterday 10 times and my call has been closed immediately.

    They told me that I’ll have to wait up to 180 days (!!!) to have my money back. Every 30 days they’ll review the situation and decide if and how much to “unlock”. But I’m sure that they holp all the money as much as they can.

    I can’t tell you how many problems that gave me as I live with that money, and also I had to pay for salaries of people working with me.

    One more thing… I had credit/debit cards linked to the Paypal account (I forgot to say that is a business account) and I can’t use them even if there’s money on them for paying online if the merchant is Paypal. I pay various business services online all with Paypal, and they’ve been all suspended as I can’t pay with Paypal using a credit/debit card that is registered with the locked account. When I do, Paypal recognizes the number of the credit card and tells that it can’t be used as it is linked with a locked account. The nice thing is that I can’t de-register them. The only solution is have a new one with a number that it’s not on their DB.

    That is my horror story. Just at the very beginning as they locked my account on April 23rd.