This website is a collection of horror stories, news reports and other information addressing problems with Paypal, Inc..

Entering PayPal Hell

Writer Wishes To Remain Anonymous

Sorry for contacting you about this, but our company seems to have entered paypal hell. We are furniture manufacturers and we decided to try our hand at selling directly to customers online.

We take great pride in offering excellent quality products and excellent service to our customers, and for the first two months of our operation, things went extremely well, and customers were very happy, and sales were much larger than we had anticipated.

Then for no reason whatsoever, paypal decided to freeze our account. It seems our transaction volume was too high. We have since been doing everything imaginable to fulfill their endless and seemingly arbitrary requests, and they have been extremely difficult to work with. At this stage their actions have harmed our business to the point were we had to suspend business for a while, as the amount of funds they have frozen is fairly large (in excess of $40,000).

We understand and even greatley appreciate the need for paypal to have verification to prevent all sorts of fraud, but at certain point of providing information to them, it becomes apparent that they may actually be delaying things rather than truly attempting any real process of verfication.

It seems to us at this stage, that Paypal is not truly interested in actually resolving any real questions, but rather in delaying things as much as possible in order to hold onto our funds for as long as possible. This will cause us serious harm and at this point we are considering legal action.

We are aware that there are some class action suits pending, but the truth is, we are really not interested in lawsuits, just in being able to resume business, and it getting our funds which we worked hard to earn by giving our customers good service and good products.

Our feeling is that we will be driven out of business, by paypal if this continues, and the reality is that by the time a class action suit will be settled, our business will be dead. We are not sure how to resolve this, and we are concerned that a business we worked very hard to build will be wiped out by this. Therefore I would like to ask you if you know of any way to get a quicker resolution. If we must take legal recourse, are there any lawyers that you know of that have successfully handled such cases?

Any help would be greatly appreciated, and honestly we would much prefer to just get on with our business than to have to deal with anything legal. Its just that by freezing such a large amount they are killing us, and we are not sure what to do at this stage.

Posted: May 9, 2012 at 10:36 am


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