PayPal Froze Account For Changing Credit Card

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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

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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 Tony

First I must say that I have been with PayPal since it’s inception and until recently with no problems. Recently I had my unblemished account limited AKA frozen because over the years I had the account, I had changed the credit card associated with it too many times for PayPals liking.

The reason for the last change was that Mastercard had compromised numerous card numbers and replaced the cards with new ones. I contacted Paypal and they told me that the CC issue violated their TOS. BS, pure and simple.

I read the TOS, word for word, and there is nothing mentioned regarding this subject. When I brought this to their attention they replied that they know it is not in the TOS but it is their internal policy. Well, how can they hold someone accountable for an issue if they don’t tell someone about the policy? No wonder there is a class action lawsuit against them over this, which fortunately I fit into the class represented.

My point being is that if you have a policy indicating that you can’t do a particular thing, then you must at least tell people so that they can avoid doing it. We never had these problems before Paypal was gobbled up by eBay.

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Posted: May 7, 2012 at 9:51 am