Update by user Nov 12

PayPal has restored my accounts.

Original review posted by user Nov 11

To Whom It May Concern:

I write concerning Paypal’s recent “permanent limitation” of my two accounts. I have been a loyal and rule abiding Paypal customer for thirteen years.

Paypal’s recent action has been the result of miscommunication and Paypal’s failure to take responsibility for the results of its own interim actions and is not well-founded in Paypal’s terms of service. I write both to explain why and to seek that the account be fully reinstated. My business has presented no problems for Paypal in the past and, since the nature of my business has not changed, should present no problem for the future.

I am engaged solely in the sale of tangible consumer goods through sites such as ebay which I purchase directly from In early September, I sold a handful of heavy freight items that involved somewhat longer shipping times.

This apparently led to a handful of inquiries to Paypal from the purchasers and an apparently routine investigation, at least at first. I received requests for information from Paypal on September 13 and September 21, both stating deadlines of Friday, September 27. In fact, on September 27, I provided all requested information for all five transactions about which Paypal sought additional information (the transactions were dated September 9-13, 2019). I have received no notice or other indication that any of the information was deficient.

Paypal has effectively admitted by its silence on this count that the initial inquiry was satisfactorily and timely resolved and that there was in fact no problem. Thus, there is no justification based on the original inquiry for any punitive action.

On Saturday, September 28, I received a notice that my account was currently negative, and the notice provided a deadline of November 10 to resolve the situation. Paypal did not, however, wait. For some reason, at about this same time, Paypal temporarily limited, meaning blocked my account.

The limited responses from Paypal to date indicate that Paypal’s own actions caused an actual problem, which they now use as an excuse to permanently block my account.

Paypal has suggested, without evidence, that the re-selling of Home Depot goods and drop shipment of goods to my buyers constituted a business model prone to disputes, a suggestion that is neither self-evident nor supportable. This is a widespread practice, with thousands of others in a similar line of e-commerce business all across the country making extensive use of their Paypal accounts.

Furthermore, Paypal claims that, after it temporarily blocked my account, there were “55 claims filed on [my] behalf against payments made to Home Depot”. These 55 claims that Paypal uses as the apparent excuse for their permanent blocking of my account were not, however, “filed on my behalf”. These were all transactions that were in progress when Paypal decided to limit my account without notice adequate for me to make alternative arrangements.

The 55 transactions ended up blocked NOT BECAUSE OF ANY PROBLEMS WITH THE TRANSACTIONS BUT SOLELY BECAUSE PAYPAL HAD UNILATERALLY LIMITED MY ACCOUNT. The cause was entirely Paypal! None of the transactions in which I engaged in September were different than those I had engaged in for many years with my Paypal account and they presented no threat to Paypal or its customers.

Paypal has now used the direct results of their own precipitous action temporarily limiting my account to justify permanently limiting my account. This is utterly unfair.

First they decided that they would unilaterally limit my account because there might be a problem, and then, even when there the initial inquiry found no problem at all, because the temporary limitation caused an actual problem, even if it was the result of Paypal’s own internal action rather than any external issue related to the transactions, they decided to permanently limit my account. This sequence of actions puts a Paypal account holder in a proverbial Catch 22—there is no way to escape a predetermined fate. Once you become a suspect, events trap you into becoming a convict. This violates the fundamental contractual principles of good faith and fair dealing, which prohibit one party to a contract from taking unilateral action that would deprive the other party of the agreed upon benefits of the contract.

The suspension of my account has drastically reduced my business and resulted in very significant losses, losses directly traceable to the end of my Paypal privileges. Because it was Paypal that caused the only real problem, the only fair result is to reinstate my account.

I am maintaining my position that Paypal should full restore both my Paypal accounts and seek your support for this.

Sincerely yours,

Product or Service Mentioned: Paypal Payment Processing Service.

Reason of review: Permanent Limited Account.

Monetary Loss: $999999.

Preferred solution: I am maintaining my position that Paypal should full restore both my Paypal accounts.

  • Permanent Limited Account
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