Why My Account Froze

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!

By Steve

Paypal chose to limit access to my account which had exactly $613 of other peoples money. My solution was to e-mail $613 worth of un-mailed orders and inform those buyers of the situation and provide them with the proper links to complain to paypal including contacting the authorities in their respective states. I then contacted paypal and informed them that I had e-mailed each buyer to let them know paypal stole their money and to request a refund. I rcvd a call from a paypalreprsentative who seemed very accomodating. and offered to assist me in obtaining refunds for the buyers. As of yet no refunds, but the ball is now in their court. I also offered other methods for my buyers to pay including a discount for their trouble. I still do not know why my account is frozen.

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Posted: May 9, 2012 at 5:16 am