Back in December of last year, I sold 2 items for $745 each on eBay and accepted the payment via PayPal. PayPal immediately limited my account and later told me that due to "risk factors" my funds would be held for 180 days. No appeals possible, was just told it's a done deal. Fast forward over 9 months later I STILL can't withdraw the money. I'm locked out of my account for some reason. I made multiple calls to PayPal each with 2+ hour hold times and in the end just kept getting told the system wasn't allowing them to fix the issue.
I submitted a BBB complaint and a CFPB complaint against PayPal and was told they want photo ID, bank statement, credit card statement, proof of address, and supplier invoices before releasing the money. Because they claimed that they need to verify my identity before I can withdraw money. They asked for the documents to be sent by email to email@example.com or by fax to 402-537-5765. Both of these seem to be an unmonitored as I've sent correspondence to these multiple times and never received a response. So even if documents are sent there I still wouldn't receive any assistance because they never respond. Why do they even need these documents anyway after the money has already been held for over 180 days? Just seems like some runaround so they can continue illegally holding my money.
They also cited terms that say they can hold money indefinitely due to "any legal reason". But I've never heard of a financial institution that can legally confiscate money from people for any made up "legal reasons".
Also see the screenshot I attached from PayPal's recently updated terms how weather PayPal has been able to verify your information affects your balance functionality. It says that even if you're not verified you can still withdraw funds (just can't send money or make payments). And prior to this newly added term, being verified or not had no effect on balance functionality that was specified in PayPal's terms. So PayPal lied to me when they said your identity needs to be verified before you can withdraw money.
I wonder if PayPal is having some sort of cash crisis? To where they have to do everything in their power to hold users funds as long as possible.
Product or Service Mentioned: Paypal Account.
Reason of review: Poor customer service.
Monetary Loss: $1490.
Preferred solution: Full refund.
I didn't like: Poor customer service, Shady terms and conditions, Illegally hold funds.