Stolen Money, Frozen Credit Card

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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!

By Jay E. Shenk

Not only has PayPal seized my funds, they have also locked up my credit card account. I bought about $800.00 worth of products on eBay, and started sending out payments via PayPal from a prepaid Mastercard.

All the payments went through, but 24 hours later, I started getting nasty letters from sellers saying my payments had been frozen. At the same time eBay sent emails to all of my sellers saying I was using a fraudulent credit card.

After several dozen phone calls to PayPal and eBay, they said the whole thing was because they didn’t like the fact that I was using a prepaid credit card.

They charged the card, took the money, closed the PayPal account, and didn’t give the money to the people I had bought from.

This morning I went to buy gas with my card, and it said I was declined. When I called the credit card company, they said it was because PayPal had put a hold on the card and frozen it because I allegedly owe them money, which they already took.

So now I am sitting here with a bunch of pissed off vendors, no products, a frozen prepaid credit card with a balance of $139 that I can’t get to, and am out an attitional $800.00 that I paid out, and PayPal has kept.

They said they would release the money when I pay my vendors, but they have the money I was paying the vendors with.

Do paypal employees get comission on money they steal? It’s starting to seem that way.

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Posted: May 7, 2012 at 10:19 am