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PayPal Fraud Practices

By Michael Fleming

I’ve recently sent the following letter to the Comptroller of Currency (an enforcement arm that regulates banks) as well as the California State banking officials; if you’ve had an experience like this with your card, I would strongly suggest you do the same.  This is probably one of the ways in which the Banking Regulators and the Banking Industry can hold PayPal accountable for their outright fruad as they pretend to be a bank and hold themselves out like a bank, raking in huge profits yet claiming “we are not a bank” when they do not conform even to the minimal laws as banks must….

1301 McKinney Street, Suite 3710
Houston TX  77010

 RE:  CASE #420787

Please consider investigating and taking action against BANK ONE NA (who issues the PayPal Debit Card with a MasterCard logo), PayPal and Mastercard International as PayPal  purports to be a bank yet is unresponsive to customer service requests and complaints and makes it impossible to dispute anything by ignoring complaints.  MasterCard has also shunned all responsibility in this matter by referring me back to PayPal while knowing they have been unresponsive to my initial complaints, although there logo appears on my debit card.

BANK ONE NA ISSUES THE CARD (Ive only learned this since receiving an email from your office) yet provides absolutely no indication at all that they are associated with it nor do they provide a customer service number on it.  By all accounts any reasonable consumer who holds the card assumes that PayPal is the ‘bank’, yet PayPal skirts all banking regulations on behalf of the real ‘bank’ which is BANK ONE NA.  I believe that ultimately, BANK ONE NA should be held responsible for all consumer complaints and non-responsive actions that are contrary to banking regulations done by those that answer the telephone number on the back of this PayPal DEBIT CARD.  MY ACCOUNT NUMBER ON THIS CARD IS AS FOLLOWS: 5581 5880 0381 0959

PayPal, although they have referred me back their website in order to dispute these charges, has required me to agree with their ‘New’ user agreement or will close my account within 32 days and lock me out of it. The ‘New’ user agreement is a result Class Action Lawsuit against them.  I am unwilling to agree to the agreement and give up my rights and in 32 days will have absolutely no recourse.  It’s just incredible how these two companies can get away with this!!!!  I am out over $1500.00 due to their inaction and have been unable to meet the strict time-frames associated with Credit Card Disputes as well as face having the information to prove my claim unavailable to me unless I agree to this agreement which I absolutely will not do.

I have tried numerous times to dispute two charges on my PayPal Debit Card in which $1,510.75 has been charged to my account.  I’ve sent emails to their customer service department over two months ago and have submitted my 8th request via their website as directed by the customer service department when I contacted them by phone at the non-toll free number on the back of my card–1-402-935-2017; I will offer that I was put on hold for over 20 minutes before being told that they will not take this dispute over the phone and that I have to do this on the PayPal website; I am awaiting my phone bill to prove the length of time I was on the phone.

Eventually I contacted MasterCard International via their website and was contacted on by Ellen who can be reached at 1-800-300-3069 who has informed me that she has maintained a file on this dispute and that PayPal has informed her that I did not dispute this charge until May 5, 2003 and that an affidavit was mailed to me.  Ellen also informed me that I will be required to overnight this affidavit back to PayPal in order to meet the time-frame requirements.  Ellen furthermore has stated that she inquired as to my faxing the affidavit back to PayPal and that she was told by PayPal that PayPal does not have a fax number nor will they accept the affidavit by fax.  This is contrary to the website materials I have reviewed.

On May 9, 2003, I received a telephone call from Stephanie at PayPal who told me that she was going to send me an affidavit that had to be signed. However, MasterCard told me on May 5, 2003 through an email that PayPal informed them that this affidavit had already been mailed to me.  As of this date, Ive not received anything from anyone in the mail regarding these

It is crystal clear to me that PayPal, claiming to be my ‘bank’ in the relationship I have with my MasterCard PayPal Debit Card, has skirted all responsibility in accepting has made it impossible for me to meet the time-frame requirements in disputing the two transactions on my account which were not authorized (one on 1/15/03 for $1010.75 and the other on 1/17/03 for $500).

I am hopeful you may require MasterCard International who can be reached at 1-800-300-3069 to produce my file in order to show that PayPal has lied about 1) the time that they became aware of my dispute; and 2) that they do not offer a fax number to send documents in order that my claim can be ignored as not being submitted by the 120 day time-frame and 3) that they informed MasterCard that an affidavit was mailed to me when in fact it had not been and understood the strict time-frames involved in processing such forms.

I swear under penalty of perjury that every statement in this letter is true and factual to the best of my knowledge and belief,

Yours Very Truly,

Michael Fleming

Posted: May 9, 2012 at 11:38 am

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