Funds held for no known reason.

[WinterRoseDanlo]

So today a friend wanted to commission me for a piece of custom work. He used goods and services as he has always done when he has made commissions in the past. For no reason today, my funds decided to get put on hold. I called customer support and was told that once I shipped the item, i would receive the funds. no, this is not how my business model works. I GET THE MONEY, I buy my materials with said money, I make the product, and I then ship it. Receiving the money later would mean I have to put myself into debt to buy materials.

Representatives were unhelpful and refused to lift the hold on my account despite me describing exactly what my product was and what the problem with having my funds on hold was.
Ive already gone and refunded this because I was so fed up, he's just going to have to give me cash for this because I cant wait 3 weeks for the money.

Why did this happen to my account?!?!? Can any representative give me a real answer that isnt a copy and paste of your general help article (which does not help AT ALL)?

[berniemate007]

I encourage you and others to file an online complaint with the Consumer Finance Protection Bureau and the Federal Trade Commission, as I did. If enough complaints are filed someone will take the necessary legal action to stop this egregious practice of placing funds on "hold." PayPal is a well-thought-out scam that generates millions of dollars---- not in fees--- but in interest on these wrongfully held funds. PayPal could literally thrive on this money alone, if it eliminated all transaction costs. Example: 100,000 transactions at $300 per, is $30,000,000--- that PP gets use of for 21, 30, 60 days. That's tremendous interest earned.

[berniemate007]

Are you seriously taking the position that it's an acceptable practice to place a 21 day hold on funds PayPal has received for the sole purpose of transferring those funds to another? Its not a check or money order PayPal is holding---- it's cash---- yours and mine. Think of it this way: PayPal recieves and then places a 21 day hold on 100,000 customer's funds, with an average transaction amount of just $200.00. That means PayPal has essentially forced us as its customers to lend it $20,000,000.00 if my math is accurate. That's acceptable to you?

[kernowlass]

@WinterRoseDanlo 

Sadly i can only give you the information available and tell you how the system works.

If it was unhelpful and i couldn't change paypals policy just for you then i will make sure i don't give up my time to respond to any of your posts in the future so..........your welcome.