Flagged transaction, and now account limited...

[ChrisFaris]

I cannot say strongly enough how annoyed I am at PayPal...to the point that I'll close my account after this is cleared.  Apparently my transfer of money to a colleague arranging a tour to Cuba (fully legal, btw) got flagged for OFAC reasons.

Customer service cannot help, "Compliance" has been non-responsive after 48 hours and after I uploaded all of their required documentation.  My only 'sin' was putting the word "Cuba" in the note to my colleague...otherwise, this would have never been an issue (i.e. transfer of money from one US citizen to another).  My awareness is now:  a) Customer Service and Compliance at PayPal is clearly unaware of current events, policies and procedures for travel internationally, b) Trolling email messages between customers is now clear...watch what you say! c) Getting things cleared in a timely manner isn't in PayPal's DNA.

Can hardly wait to close my account!

[kernowlass]

ok

[Whac-A-Mole]

where is your US citizen friend?

what country is his Paypal account based?

[ChrisFaris]

All USA-based...we live in the same city.  No money transferred outside the country.  I was paying him for setting up a tour to Cuba for which he paid the tour company with a check.  In my transfer message to my colleague, I said, "Hey X, thanks for making the arrangments to Cuba, here is our deposit money." ($1500 btw, so no great amount of money) and "bang" my account is limited, with the message "please explain myself" and provide details.  I reverted immediately: explanation, summary of purpose of transfer, and even, surprisingly, a link to the WSJ lauding that travel to Cuba was now open, legal, etc.  My airline purchase of plane tickets on my American credit card to American Airlines was accepted with no hassle whatsoever.   I wasn't shipping state secrets to the comrads 90 miles away!

In the intervening 48 hours, no additional updates from "compliance", my outreach to Customer Service fell on deaf ears, "we can't help"...just overall a very poor experience, and frankly and indication that private transactions, that are perfectly legal are being monitored...that is what I find the most disturbing.  Way too much 'big brother' for me.

Can't wait to close this account once I'm 'free' again...I'll revert to good old checks...don't need the hassle.

[kernowlass]

@ChrisFaris

To be honest details don't matter, if they have limited your account permanently then not a lot you can do about it.

BUT you won't be able to CLOSE your account if it is permanently limited. Paypal don't allow you to remove your bank account or cards and close the account in case you use them to open another account.

[ChrisFaris]

Thanks for the info...it appears to be temporary for now (maybe they will freeze me permanently after they see me venting my spleen on them!).  My gripe is really about:  a) monitoring messages that one might consider private, b) Poor compliance processes, just keying in on words doesn't appear to be effective...we are both US citizens, never been in trouble or had other sketchy behavior etc...what if my friend's last name happened to be "Cuba"?!, c) poor customer service response and awknowledgement to resolve the issue...I've done my part, but have received zero acknowledgment, d) based on the email I received, it appears that "compliance" is actually in a call center in India, so I find it strange that United States OFAC monitoring is potentially 'outsourced'...but also explains the poor/slow response as well to get this resolved.

[kernowlass]

@ChrisFaris

If its temporary then yes you would be able to close it if they remove that limitation.

Not sure why Cuba would make any difference but then I don't know what restrictions you guys have.

I have been to Cuba twice, and if you venture off the tourist beaches and complexes it is a very poor country and the animals are not treated very well.   

Are you actually sure that was the reason? As i can't see they would have time to monitor messages ..... they hardly read the ones that they are sent  !!

Have you phoned them to find out why?

OR

 have you considered contacting Customer Service via Facebook or Twitter?

You can send them a personal message from their facebook or twitter pages.

It's: https://www.facebook.com/PayPal and @AskPayPal for Twitter.

[ChrisFaris]

I called CS and they said it was a complaince matter and couldn't help.  The email from compliance specifically stated:  a) I may be in violation of OFAC regulations, b) Please explain the message where I had the word "Cuba" in it...other than that, no other message or contact.  I had 12 days to send in my info or "more limitations" would be imposed, so perhaps they are taking the full 12 days to resolve, it is unclear.  I stand by my original point of view that their treatment of this and responsiveness is way out of line...you don't put "limitations" on an account, and then just disappear, and you don't monitor messages without fully disclosing that (I'm sure it is in some agreement, buried deep, that I signed when opening the account , but overall it is just bad form...buyer beware I guess!

[kernowlass]

@ChrisFaris

Certainly sounds very stange.

[DPCreations]

Just because you think a tranfer may be for leagal purposes doesn't mean that it is permitted with PayPal policies which can be more restractive than monetary reguations.

Restrictions can happen also when you make a transfer to another PayPay  member doing risky business.  Do you really know what transactions your friend did after receiving the money?  Was it for goods/service or friends/family?  There are a lot of details missing,