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PayPal Days Are Over

Writer Wishes To Remain Anonymous

$7,854.52 FROZEN 06-15-2005 by Paypal. Paypal sent an email (see attached) after they froze the account. I have 388 positive feedbacks on ebay with 0 negatives, but now I’m ruined. I’ll get several negatives because I can not pay for the items won by bidders, much less ship them. I’ve been selling boating items (fishfinders, GPS Chartplotters, etc.) at bargain prices on ebay. My gross sales of approx $40,000 per month had netted me Gold level PowerSeller status. Now all that work of selling, doing everything to keep customers happy, is gone down the drain.

Paypal says they ran a “random” personal credit check and found the debt to income ratio too high to allow such large transactions to be used on their account. They only ran my wife’s credit, utilizing just one income to make their decision on. A paypal rep called me a hour before the account was froze and asked the wierdest questions. He stated “I see you’ve been selling a lot of fishfinders and GPS units for boats, is that correct”?. I replied yes, then he asked “may I ask where you’re buying these from”? I thought this was strange, but I told him because I figured he has access to that information anyway since I pay for it with the Paypal card. Then he asked “you seem to be doing quite well with this, is there good profit in it”? That’s when I asked him why he’s asking this. He replied, “just curious”, we were only needing to verify some expenditures you’re making on the paypal debit card.

Next thing I know is the account was closed with the following email attached. Paypal won’t re-run the credit with two incomes. They refuse to discuss the matter any further. My ebaying is likely over for good.
We regret to advise you that PayPal has determined to close your account. The following notice explains the reason for closure and the process for disbursing any remaining balance.
As part of our account review, a consumer credit report was obtained from the credit reporting agency identified below. The results of the report contributed to the decision for account closure. Equifax did not make this decision and is unable to provide you with specific reasons why the decision was made. However, you have the following rights under state and federal laws:

The right to obtain a free copy of your Equifax consumer report if you make such a request to Equifax within 60 days of your receipt of this notice and The right to dispute the completeness or accuracy of any information contained in such report by notifying Equifax directly of your dispute You may contact Equifax by telephone using their 1-800-685-1111 phone number and selecting the ‘denied credit’ option. Then follow the instructions that are given.

If you prefer to use a mailed request, send the following information to Equifax: first name, middle name, last name, spouse’s name (if applicable), home address, home address for the last five years, date of birth, social security number (required), and copy of declination notice (this form).
Mail this information to:

P.O. Box 740241
Atlanta GA, 30374-0241

Disbursement of your account balance can be handled in one of two ways:

Option 1. Your remaining account balance can be used to refund the buyers. If you would like to pursue this option, please reply to this email with a list of buyers you would like to refund. Include the email address, date, and amount of the transaction. If you need to refund in bulk, please provide a date range in which you would like all transactions refunded. We cannot issue partial refunds

Option 2. Your remaining account balance will be held within your PayPal Account for 180 days in order to minimize chargeback risks. Once the 180-day period is completed, a check will be sent to your home address In the event of a dispute, PayPal will seek to recover the funds from you by debiting your PayPal balance and, if there are not sufficient funds in your PayPal balance, PayPal reserves the right to collect your debt to
PayPal by any other legal means.

PayPal Account Review Department

PayPal Email ID PP522

Posted: May 7, 2012 at 12:26 pm

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One thought on “PayPal Days Are Over
  1. Polly Dubar on

    Wow they ding you for everything possible huh. I thought they could only deny you when applying for their debit card. I waited two weeks then got a letter saying I hadn’t been approved. I never thought they would randomly select you, that’s garbage!