Won’t refund account balance

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

If 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!

We use PayPal occasionally for our two companies – mostly to buy things. So a week ago I deposited $1,600 to buy several computers. They send the money to the vendor, then reversed it. Then they charged me $1.95 to verify the account and then, after I provided the verification code, they refunded the $1.95. But still my account is marked “Limited.” Today I called and they said that the risk to too high on our account, but I have never had any issue in the past, other than not using it very much. I asked the reason and was told, the only way we will tell you that is if you submit a Subpoena to their legal department. This is very odd. I guess I won’t use Paypal Again. But how and when will I get my money back? I need that money to buy the computers and the vendor has agreed to sell them to me and I can pay with a money order but now paypal is not giving me access to my money despite me doing everything they have asked for.

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Posted: October 17, 2012 at 2:36 pm