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Funds Stolen By PayPal



In April 2004 I sold a gold coin, eBay item 3910108577, for $422.75 and was promptly paid. On 5/3/04 I sold a gold chain, eBay item 4112112504, for $387.53 and was promptly paid. On 6/17/04 I discovered a negative balance in my Paypal account.

I contacted PayPal and they claimed that I “may” have been paid with fraudlent funds. Paypal had raided my account and seized my money leaving me with a negative balance without my knowledge, consent, due process of law or even notice. When I objected they said they would investigate and get back to me in 5 days. They lied.

They retaliated by seizing even more money using the “may have” and the “get back to you in 5 days” excuse again. They told me nothing and kept my money. They then attempted felony extortion but threatening me with destroying my business by “LOCKING MY ACCOUNT” if I did not send them money to clear the negative balance that they had illegally caused.

I refused to give up both my gold and the money too, especially without due process of law. I said I may sue. They lied again. They told me that I have no access to any court because of Section 15 of the user agreement makes them imune from all law suits in all courts.

This is an obvious lie because any contract that conflicts with either state or federal statute is illegal and unenforcable. Apparently they have never heard of “DUE PROCESS” and the United States Constution. Also they had unilaterally breached the contract with their illegal acts so Section 15 was no longer in force.

If Paypal is is exempt from American law how do they explain being sued by so many victims? I did my homework. I discovered that on chargeback was due to my buyer being the victim of a stolen credit card payment he had received. They raided his account also, then they raided mine even though I had received no fradulent funds from my buyer and was an innocent third party who had been paid with a legal funds transfer, not a stolen credit card. Paypal had collect from both our our accounts even though we were both innocent victims.

I researched the my other illegal seizure. I found basically the same scenario. I had been paid by electronic transfer of legitimate buyer funds, not fraudlent funds. This buyer was also a victim. He had paid me with his own legal funds which were still in his account after his account had been stolen by a hacker. Again, I was an innocent third party that was never a part of any questionable transaction.

As proof see eBay item 3910108577 which is the gold coin I had sold. Click into the buyers feedback and see the feedback on item 3721034598. “Ebay said this account had been stolen.” Both eBay and Paypal knew that the money in the buyers account was residual money still left in his account after his account had been stolen and clearly not funds that he had defrauded from anyone.

Like me, he was a victim, not a criminal. To make matters worse I request a refund on both sales from Paypal under their so called buyer protection policy. They did not respond to my request on the gold chain. On the gold coin they refused to refund by claiming that the refund had expired due to the 45 day limit.

Paypal had waited 47 days to illegally raid my account. I would appreciate being contacted by anyone who can include me in any class action law suit. I am an Army veteran who was born on Camp Pendelton Marine base. I have an honorable discharge and 3 medals from the Army. My father was in the Navy during the war and also police sargent. It is my position that I do have civil rights, including due process of law. William E. Giles dba DILU1974 on eBay.

Posted: May 7, 2012 at 10:56 am

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