Twice Frozen By PayPal

PayPal Warning

While we do not have the resources to verify each and every complaint we receive, we do believe that all reports posted here are true based on our own experience with Paypal and the growing number of corroborating horror stories we receive every day. The main subject of the majority of these horror stories is the following:

Your Paypal account can be frozen at any time, without advance notice, leaving you without your money for months (if not forever), and there isn't much you can do about it.If you would like to submit your own PayPal horror story, we would be more than happy to post it for everyone to read, providing that it is truthful and void of inappropriate language. Please feel free to submit your story by clicking Here

f you are searching for an alternative to PayPal, we strongly suggest acquiring a Real Merchant Account. CLICK HERE FOR OUR TOP PICK.

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 Andrew Shipp

Hi, I have twice now had my account frozen by Paypal. Both times, i have had over £200.00 in there which i had chosen to accumulate ready for a holiday. On requesting what the problem was, i was informed that it was “Just routine” as they had reason to believe that i was not legitimate. Yet, i have had a paypal account for over 3 years and not one bad feedback!!! To add injury to insult, i received a payment for an item i sold through e-bay, and on being informed that the payment was in my paypal account, sent the item to the customer only to be told by Paypal after 4 days, that they were witholding the payment to me pending an unauthorised transaction.

After spending 90 minutes on the phone, i was finally informed that they were looking in to it and might possibley send the payment back to the person who purchased the item from me. 6 weeks later, this is exactly what happened leaving me without the money and the item i had sold. Paypal would do NOTHING to help and told me that it was all done to protect me, the seller!!!