After working with a Paypal business account for several months, my business received and announced verification limitation from paypal. Why they do this AFTER you are up and running with their product and service I dont know.
Throughout Feb and the first half of March this year I submitted countless documents to Paypal. I was also on the phone with them EVERYDAY and sometimes more then once a day. I was submitting documents in addition to what was required. ( For example I voluntarily submitted business documents for the registered business name on the account ect.
which showed proof of owner ship. I also submitted my birth certificate along with ssn print out and my ID.) From paypals end there was always something wrong with something submitted. (First time it was "they could read something on the ID, whcih was ridiculous becuase even though there was flash unless you were looking at it on a 2 inch screen zoom clearly allowed you to see an EXPIRATION DATE. Another instance of jerking me around was the "letter of authorization" that they required from me (business owner) on behalf of my business.
Business letter head was required. They kept rejecting my letter but never said why. Finally after a week of pressing them I was told that it should have the business "stamp". I admit i went balistic on the phone.
SMALL4-5 PERSON BUSINESSES DONT EVEN USE LETTER HEAD AND I DONT EVEN THINK THAT ANY COMPANY THIS DAY IN AGE HAS A STAMP. ) Eventually paypal ran out of moves in moving such goal posts and hiding the ball. So i persisted. The end result was a an email from paypal stating the following: After a review, we decided to permanently limit your account as we detected that this account was created using either fraudulent or stolen information.
You’ll not be able to conduct any further business using PayPal. If you have money in your PayPal balance, we’ll hold it for up to 180 days. After that period, we’ll email you with information on how to access your funds. We regret any inconvenience this may cause..
this is my letter back to them This notice comes to the appropriate parties as a demand to review, reconsider, and subsequently change recent actions that have been taken on the aforementioned account (here-and-from-now referred to as “the account”). Recent actions that have been implemented on the account are inappropriate and MAY BE IN VIOLATION OF STATE AND FEDERAL REGULATORY PRACTICES AND LAW. It is assumed that you have access to all information, documents that have been submitted, records of phone calls, all responses and replies to the account, and any other record or information that is associated with the account. If any of the aforementioned information associated with the account is needed please let me know and I will certainly provide it.
When reviewing all of the information associated with this account I would like to call attention to the constant misinformation, unnecessary information demands, constant requests for additional information which never were required in the first place, constant hang ups and disconnection from reps, and in general the constant “run-a-run” that representatives in and of your organization have carried out over the past month. Also, some representatives provided false information (either knowingly or by lack of knowledge) with respect to policy, the user agreement, or certain actions that I was trying to take on the account. There appeared to be a constant moving of the “goal-post” and a “hiding-of-the-ball” at every attempt for me to have this Business Account functioning without limitation. Such actions are not acceptable for any business but are disgusting when it comes to a payment processor and money.
After weeks of submitting documents, receiving conflicting account information, receiving erroneous information with respect to your organization’s policy and user agreement, and a plethora of requests (mostly for information that was NOT required or for which was repetitive), I received notice via email that is not only is irrational but is highly unreasonable.3 With the situation as presented above, and the results, as are enclosed below, it is my determination that appropriate measure can only be taken by other individuals, agencies, and/or authorities that have an interest in how such accounts are handled. Therefore, it is my intent to contact senior management at your organization. If resolve does not quickly avail from this group, appropriate State and Federal agencies and officials will be notified via the appropriate means.4 It is my demand that the following actions, which have been taken by your organization, be reviewed, reconsidered, and changed. On 3/14/2019 I received the aforementioned notice via email.
(The contents of this notice are stated in the footnote below.) This notice provided the following information: 1. “[T]hat this account [ the account that is the subject of this letter] was created using either fraudulent or stolen information.” 3Such highly unreasonable actions, especially with concern to payment processors MAY BE IN VIOLATION OF STATE AND FEDERAL REGULATORY PRACTICES AND LAW. 4There are many government (State and Federal) agencies and bodies that have interest in this account’s handling and such status. Due to the fact that all funds are being held it can be concluded that I have a presence in any State for which I have sold items into.
The complete list of states for which this account has presence (which include, but not limited to, doing business through sales, or registered in or doing business by other means) are Alabama – AL, Alaska – AK, Arizona – AZ, Arkansas -AR, California – CA, Colorado – CO, Delaware-DE, Florida -FL, Georgia – GA, Hawaii – HI, Illinois – IL, Indiana – IN, Iowa – IA, Kansas – KS, Kentucky – KY, Louisiana – LA, Maryland – MD, Massachusetts – MA, Michigan – MI, Minnesota – MN, Mississippi – MS, Missouri – MO, Nebraska – NE, New Hampshire – NH, New Jersey – NJ, New York – NY, North Carolina – NC, Ohio – OH, Oregon – OR, Pennsylvania – PA, South Carolina – SC, Tennessee – TN, Texas – TX, Utah – UT, Vermont – VT, Virginia – VA, Washington – WA, West Virginia – WV, Peruto Rico—PR. State regulators and/or the Attorney Generals for the aforementioned States have interest in how this account is handled, due to the fact that funds generated from those sales are currently being held for 180 days. With respect federal jurisdiction the following agencies and groups, but not limited to such may additionally have interest in the account: The Office of the Comptroller of the Currency (OCC), the Federal Reserve Board (FRB), the Federal Deposit Insurance Corporation (FDIC), the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), and the National Credit Union Administration (NCUA). The Better Business Bureau (BBB) 5 You can no longer do business with PayPal After a review, we decided to permanently limit your account as we detected that this account was created using either fraudulent or stolen information.
You’ll not be able to conduct any further business using PayPal. If you have money in your PayPal balance, we’ll hold it for up to 180 days. After that period, we’ll email you with information on how to access your funds. We regret any inconvenience this may cause.
2.That your organization has “decided to permanently limit” the aforementioned account 3.That funds in the account will be held for up to 180 days. At this present moment, it is my demand that these actions, be reviewed, reconsidered, and changed. I.“[T]HAT THIS ACCOUNT [ THE ACCOUNT THAT IS THE SUBJECT OF THIS LETTER] WAS CREATED USING EITHER FRAUDULENT OR STOLEN INFORMATION. The first claim is false.
After submitting countless documents, answering repetitive questions from account representatives, and resending repeated requests for this business account for nearly a month, I find no basis for how and why your organization can claim such fraud and theft. Further, this claim can not be an accurate held belief of your organization. If your organization believes this to be true than your action at minimum (emphasis added) should be to contact the appropriate state and federal authorities. (Additionally, such a claim and appropriate action would be the turning over of records and funds form such an account.) If it is the belief of your organization that this account was created on the basis of fraudulent and stolen information, then one would expect certain appropriate and reasonable actions to follow.
Such appropriate and reasonable action has not occurred, and this is evidenced by the aforementioned point number three (3), which states that funds will be held for up to 180 days. II.That your organization has “decided to permanently limit” the aforementioned account. With respect to this part of the aforementioned notice, if your organization has decided that you no longer wish to do business than such appropriate action needs to be the closure of this account, not the present “permanently limited” status. Your organization has decided to put a “permanent limitation” on the account which allows you to retain and hold the funds from this account, without allowing access, withdrawal, or use of such funds.
I would like to express my intent to no longer engage in any business with your organization. Therefore, I would like to express my intent to close this account. III.Funds in the account will be held for up to 180 days: Any funds in the account are derived from completed sales on Ebay.com. Having access to this accounts Ebay.com sales information on each of those sales is easily accessible to your organization.
Feedback on the associated Ebay.com account is overwhelmingly positive. Your organization has made the claim that all funds must be held for 180 days in order to reduce potential risk that may result from charge backs. This claim of why ALL the funds are being held does does not hold merit. It appears on the surface that your organization is protecting itself in compliance with certain State and Federal regulations that allow for such a hold in order to reduce protentional risk; however, the basis for such compliance is unreasonable.
Charge backs do not come from satisfied customers. As previously noted this account and associated Ebay.com account have an overwhelming number of satisfied customers, who have vocalized such, through its feedback system. All data associated with transactions which funded the account are indicative that it is highly unlikely for any charge backs to occur. It is highly unreasonable to freeze all assets in this account on the notion that charge backs may be looming in the near future.
It should also be noted that the timing by which the 180 days is starting is also unreasonable. The first sale on the Ebay.com account that funded this account was in November, 2018. The last sale on the Ebay.com account that funded the account here in question was in January, 2019. Nearly two months have passed, with out any activity from the customers from the Ebay.com account which funded this account.
However, representatives have state that the 180 day risk reduction period starts when implemented. Thus, the start date has be claimed to be 3/14/2019. This is also excessive and unreasonable for it extends way beyond any time period of risk for charge backs. .
The holding of funds is obviously the most important issue in the said notice. Additionally, if your organization does not review, reconsider, and change the outcome of the aforementioned issues presented, necessary action that needs to been taken will come from the inappropriate and unreasonable action detailed in this section.9 Such action will involve, but not be limited to the contacting and filing of the appropriate complaints with State and Federal regulators and agencies.101112
Product or Service Mentioned: Paypal Account.
Reason of review: stealing my money.
Monetary Loss: $1951.
Preferred solution: Full refund.
PayPal Pros: That they are the size theu are.
PayPal Cons: Feel they can do whatever they want violate state and fed.