This website is a collection of horror stories, news reports and other information addressing problems with Paypal, Inc..

Unusual Use Of Funds

Writer Wishes To Remain Anonymous

I have been using PayPal for quite some time, and have enjoyed the convenience of being able to transfer funds back and forth between accounts that are otherwise not internet-enabled. But I recently made the mistake of attempting to transfer $8000 into my PayPal account, and apparently that triggered the “unusual use of funds” lockdown.

I received an email informing me that I needed to fax ID and a bank statement to PayPal. 24 hours later, before I had faxed the documents, I received two more emails from PayPal. One told me that I did not need to fax the documents, the other (from “Sarah”) told me that I did indeed need to fax the documents. The PayPal website shows that I do not need to fax the documents, but my account is still restricted.

I replied to Sarah, requesting more information on why my account has been restricted, and specifically what triggered the lockdown (“unusual use of funds” is pretty vague, after all). If they can give me a “magic amount” that, when transferred, automatically triggers the restriction, at least that will help. It’s very disconcerting to realize that PayPal can completely restrict my access to my own money in this way, apparently indefinitely.

This is all very crazy, not to mention annoying and bad for business, and it borders on outright theft. I am seriously rethinking my use of PayPal. I’ll be checking into the alternative services you list on your website…I appreciate the work you’ve put into this resource, and I wish I had known about it months ago!

Posted: May 8, 2012 at 1:24 pm


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