Has anyone else had their money seized by PayPal?

[Illegally_Froze]

I transferred $1000 from my personal bank account in error and PayPal assured me I could immediately transfer it right back once it posted.  Instead the locked my account and are now holding money I need to live hostage for half a year.  This strikes me as illegal.  They say they can't do anything about it (amazing, apparently machines run the place once they've got your money), which is BS since I've given them articles about a big time poker player who sued them for the exact same thing and his money was returned instantly.  Anyone else had to deal with this garbage? @the3, @gamer 

[sharpiemarker]

@Illegally_Froze 

Apparently PayPal still has the right to have these sort of policies even if someone sues them to get their money back. It don’t necessarily mean the policies are indeed illegal. If they REALLY were, the policy would not be in the user agreement still. PayPal has lawyers up the ying yang to write these policies. Certain policies are established as a deterrent, to keep order and protect PayPal and its users. You or I may not necessarily like the policy but at least I understand the need for it. I think it would be dumb for the law to prevent businesses from protecting itself from risk and to comply with laws that are actually on the books. I also understand that errors/misunderstandings could be made. You’re just gonna try a little harder to get this resolved. If you have a consumer advocacy organization in Canada you can contact that can assist with this, by all means contact them or file a complaint at bbb.org under PayPal San Jose, CA or under the Canadian office in on University Ave, I think, in Toronto to try to restore your account via another account review. Good luck.

Once an account is permanently limited, the typical procedure is to hold the funds for 6 months as that’s how long a sender has to dispute a payment against your account.

And the money is not seized, just on hold, unless they said you specifically violated Acceptable Use Policy and liquidated damages are due. Then your PayPal balance funds may be seized.

[Illegally_Froze]

All well and good, except they've been sued for it before and backed down (Chris [removed]).  If they had half a brain they could easily see the money from what they consider high risk transactions separate from the money that was simply straight from my personal bank account.  There's no reason at all to hold that.  So I'd say they're violating their own policies because now they're arbitrarily (and possibly illegally) holding money that doesn't fit any criteria they use to self-justify their seizures.

But I think I found an ironic solution.  I argued to my bank that PayPal committed fraud by their definition (by receiving payment and then not providing the merchandise or services promised) and I did exactly what I tried to tell paypal there was no risk of:  me issuing a charge back against myself.  

This is how stupid they are.  They blanket seize money they have no right to even though there's zero chance of charge backs on it, which forced me to do the mind-boggling thing - charge back myself. 

Now they're slapped with BBB complaints, notice of violation under the Consumer Protection Act in Ontario, and now they've got Bank of Nova Scotia coming for them for fraud (yes, it's gone through - I have the $1000 back in my account, and you'd better believe the bank isn't going to let PayPal off the hook for THEIR money).

So, PayPal.....**bleep**!

[Lily1960]

I accidentally put the wrong number to my bank account. I was on the phone with pay pal when it happened. I have sent pictures of the Bank sending the money back because Paypal asked for it. But Paypal keeps saying the bank kept it and used it toward loans or other charges. Which in the US is very illegal. I sent pictures and then they responded that the Bank still has it in my bank account. But they will not let me respond to their messages. They keep closing the messages and they’re open. I don’t know how to get my money back.

[Illegally_Froze · Accepted solution]

SOLVED!   After more than a month of at least 15 messages a day to PayPal's crack team of Stonewallers and being responded to with nothing but nonsensical canned gibberish about "not holding my money, just keeping it safe" or "nobody at PayPal can change the 180 day freeze) I FINALLY GOT MY MONEY BACK.

As noted previously, I resorted to the ONE THING that PayPal was never at risk of, yet they used as an excuse to hold my money.  That being - a charge back from ME.  I went to my bank, and it took a bit of convincing, but they filed a fraudulent transaction claim against PayPal and refunded my money withing 24 hours.  Then, today (I did this last thursday, and today is monday) I get an email from PayPal returning my money.  The kicker!  It ends with "next time just log in and talk to customer service".  ARE YOU EFFING KIDDING ME?   LOL. 

[Lily1960]

Thank you for sharing that. I am going to my bank on Monday. They said they sent money into a nonexistent bank account. Not once but twice. Even after I showed them letters from the bank that they sent it back April 17. Paypal said they put it into the bank account again on the 24th. If they knew the bank account number wasn’t right over and over I’m like you I have contacted them at least 3-4 times a day. They asked me not to contact them, but when the money comes, it will get put back into my account. I don’t know what to do. But I’m gonna go try this.

[Illegally_Froze]

When it comes to getting your money for themselves, they're lightning fast and attentive. When it comes to giving your money back, they're a bunch of halfwits who claim that nobody can do anything (despite showing time and again that, with the right motivation, they absolutely CAN do something, and just as lightning fast when their feet are held to the fire). Be relentless and ruthless.