- Report: #1029065
Complaint Review: Paypal.com - Internet
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Paypal.com
Internet, U.S.A.
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Paypal.com WARNING! paypal ripoff has not closed my account and sent me my money, as requested more then a year Internet
WARNING:
Your Paypal account can be frozen at any time, without advance notice leaving you without your money for weeks (if not forever), and there isn't much you can do about it. Paypal is currently being investigated by regulatory authorities in three states!
Paypal.com did not close my account, and send me my money as I requested. It has been over one year since I contacted them. They said that paypal would send a check.
I have received nothing!!!!!!!!!!!
Be warned that Paypal is not a bank and is not FDIC insured. Paypal provides for a new concept pass-through FDIC insurance coverage. They do this by pooling funds into checking accounts at about four different banks. This is great in case any of those banks go out of business (highly doubtful), but we are not yet sure of the coverage offered in case of another Paypal "dot com" failure.
Many Paypal accounts are frozen for almost anything and without warning until the owner faxes in lengthy and intrusive private information several times over. Even then, the account may not be released. The account can usually receive money while it is frozen, but it certainly cannot withdrawal money.
Merchants finding themselves on the wrong end of a frozen Paypal account will still have to find some way to pay their obligations and fill orders for the weeks and months while the account is restricted. A domino effect occurs when a merchant's account is frozen, leaving them with no means to fill orders. Those orders are then disputed by customers, creating more chargebacks and the illusion of fraudulent activity on the part of the merchant.
While anyone paying into the Paypal system with a credit card does still have the protection of their own bank by disputing the transaction to create a chargeback, Paypal will eventually insist that a customer begins depositing money through their checking account. This will eventually prove to be a mistake as all chargeback protection through a credit card is then lost, leaving the customer at the mercy of Paypal.
Anyone experiencing these Paypal nightmares could always threaten to sue them, but that may be difficult at best. A thorough reading of the Paypal terms of service will reveal that you cannot even sue them should you have a legitimate claim. Their terms of service make it very hard to sue them! There have been several class-action lawsuits filed against Paypal.
Fraud seems to run rampant on the Paypal system. Merchants doing business through Paypal are simply not given any of the same tools to identify fraudulent transactions that real credit card merchants enjoy, yet they seem to take even more risk. Paypal is quick to chargeback transactions months after the fact, for seemingly any reason.
Any Paypal customer with a problem typically has an impossible time calling and talking to a real live person, and personal attention to electronic mail is virtually non-existent. According to Vince Sollitto (PayPal spokesman), Paypal intentionally makes the phone number very difficult to find in order to save costs. This is fine, except their Email "customer service" also leaves a lot to be desired. Many times you will get a canned response that doesn't address your initial Email message, if you get a reply at all. It doesn't do any good to complain anyway. When asked about customer complaints, Sollitto said the company reads them, but takes them with a grain of salt... (source MSNBC article, above).
None of this is very surprising when you consider that Paypal, Inc. publicly admits "we have limited experience in managing and accounting accurately for large amounts of customer funds." Their EMail "customer service" is also outsourced to a company in New Delhi, India. Additionally, regulatory authorities in three states (California, Idaho and Louisiana) are investigating whether PayPal, Inc. is engaged in a banking business because of their customers' ability to retain a balance for future transfers. Because Paypal is not licensed as a bank, they are not permitted to engage in a banking business! (Source, IPO Prospectus) Louisiana has already ordered Paypal to stop doing business in the state. This could spell REAL trouble for anyone with funds "deposited" in Paypal.com!. Paypal also recently shelled out $200,000 to the NY Attorney General and has agreed to stop service to NY gamblers.
This website is a collection of horror stories, news reports and other information addressing problems with Paypal, Inc.. While we do not have the resources to verify each and every complaint we receive, we do believe that all reports posted here are true based on our own experience with Paypal and the growing number of corroborating horror stories we receive every day.
PayPal, Inc.
1840 Embarcadero Rd
Palo Alto CA 94303
PayPal, Inc.
11128 John Galt Blvd
Omaha, NE 68137
Known phone numbers:
(402) 935-2000 / (402) 935-2001 / (402) 935-2062 / (402) 935-2258 [this is Craig, complaints resolution manager] / (402) 935-7733 / (402) 537-5740 (fax) / (650) 251-1100 / (888) 221-1161 / (800) 836-1859 / (877) 672-9725 / (866) 272-9725 / (402) 935-2338 [Carrie, Paypal Security]
Harold
Seattle, Washington
U.S.A.
Click here to read other Rip Off Reports on PayPal
Your Paypal account can be frozen at any time, without advance notice leaving you without your money for weeks (if not forever), and there isn't much you can do about it. Paypal is currently being investigated by regulatory authorities in three states!
Paypal.com did not close my account, and send me my money as I requested. It has been over one year since I contacted them. They said that paypal would send a check.
I have received nothing!!!!!!!!!!!
Be warned that Paypal is not a bank and is not FDIC insured. Paypal provides for a new concept pass-through FDIC insurance coverage. They do this by pooling funds into checking accounts at about four different banks. This is great in case any of those banks go out of business (highly doubtful), but we are not yet sure of the coverage offered in case of another Paypal "dot com" failure.
Many Paypal accounts are frozen for almost anything and without warning until the owner faxes in lengthy and intrusive private information several times over. Even then, the account may not be released. The account can usually receive money while it is frozen, but it certainly cannot withdrawal money.
Merchants finding themselves on the wrong end of a frozen Paypal account will still have to find some way to pay their obligations and fill orders for the weeks and months while the account is restricted. A domino effect occurs when a merchant's account is frozen, leaving them with no means to fill orders. Those orders are then disputed by customers, creating more chargebacks and the illusion of fraudulent activity on the part of the merchant.
While anyone paying into the Paypal system with a credit card does still have the protection of their own bank by disputing the transaction to create a chargeback, Paypal will eventually insist that a customer begins depositing money through their checking account. This will eventually prove to be a mistake as all chargeback protection through a credit card is then lost, leaving the customer at the mercy of Paypal.
Anyone experiencing these Paypal nightmares could always threaten to sue them, but that may be difficult at best. A thorough reading of the Paypal terms of service will reveal that you cannot even sue them should you have a legitimate claim. Their terms of service make it very hard to sue them! There have been several class-action lawsuits filed against Paypal.
Fraud seems to run rampant on the Paypal system. Merchants doing business through Paypal are simply not given any of the same tools to identify fraudulent transactions that real credit card merchants enjoy, yet they seem to take even more risk. Paypal is quick to chargeback transactions months after the fact, for seemingly any reason.
Any Paypal customer with a problem typically has an impossible time calling and talking to a real live person, and personal attention to electronic mail is virtually non-existent. According to Vince Sollitto (PayPal spokesman), Paypal intentionally makes the phone number very difficult to find in order to save costs. This is fine, except their Email "customer service" also leaves a lot to be desired. Many times you will get a canned response that doesn't address your initial Email message, if you get a reply at all. It doesn't do any good to complain anyway. When asked about customer complaints, Sollitto said the company reads them, but takes them with a grain of salt... (source MSNBC article, above).
None of this is very surprising when you consider that Paypal, Inc. publicly admits "we have limited experience in managing and accounting accurately for large amounts of customer funds." Their EMail "customer service" is also outsourced to a company in New Delhi, India. Additionally, regulatory authorities in three states (California, Idaho and Louisiana) are investigating whether PayPal, Inc. is engaged in a banking business because of their customers' ability to retain a balance for future transfers. Because Paypal is not licensed as a bank, they are not permitted to engage in a banking business! (Source, IPO Prospectus) Louisiana has already ordered Paypal to stop doing business in the state. This could spell REAL trouble for anyone with funds "deposited" in Paypal.com!. Paypal also recently shelled out $200,000 to the NY Attorney General and has agreed to stop service to NY gamblers.
This website is a collection of horror stories, news reports and other information addressing problems with Paypal, Inc.. While we do not have the resources to verify each and every complaint we receive, we do believe that all reports posted here are true based on our own experience with Paypal and the growing number of corroborating horror stories we receive every day.
PayPal, Inc.
1840 Embarcadero Rd
Palo Alto CA 94303
PayPal, Inc.
11128 John Galt Blvd
Omaha, NE 68137
Known phone numbers:
(402) 935-2000 / (402) 935-2001 / (402) 935-2062 / (402) 935-2258 [this is Craig, complaints resolution manager] / (402) 935-7733 / (402) 537-5740 (fax) / (650) 251-1100 / (888) 221-1161 / (800) 836-1859 / (877) 672-9725 / (866) 272-9725 / (402) 935-2338 [Carrie, Paypal Security]
Harold
Seattle, Washington
U.S.A.
Click here to read other Rip Off Reports on PayPal
1 Updates & Rebuttals
Michael
Costa Mesa,California,
U.S.A.
yes be carefull with paypal
#2Consumer Suggestion
Wed, July 12, 2006
i have never had any problems with paypal before but i have one now. i sold an ebay buyer some as is items and she was unhappy about it. i emailed back and reminded her that my items were as is no returns no refunds and im sorry. she files a dispute and now my acct is frozen until its resolved. i am not happy about this. hopefully paypal will see my side of this and it wont be a future problem once the dipute is resolved. however in the meantime it looks like my acct is frozen! over 63.00! just because some lady says i sold her krummy merchandise! i dont think she will win but this is still annoying. the last report is correct! paypal can freeze your acct at any time for any reason and theres nothing you can do about it except respond back with your side of the dispute and it has to be within a certain amount of time or you automaticly lose. geez... paypal says they arent a bank but they have a bank card +atm debit card so to me it seems they should be regulated like a bank is. anyway i am the victim of a bogus frivolous dispute and until paypal straightens it out im stuck i guess whats to stop a buyer from claiming they never got anything from you? whats to stop them from claiming you sent them fake or counteriet items when you didnt? they have buyer protection policy but they dont have much of any seller protection policy! a legitimate chargeback is one thing but frivolous claims and they just freeze your acct? this isnt totally paypals fault and im sure they dont like issues like this either. gut when a seller writes an ad for an item and it says as is no returns no refunds it means just that! paypal should decline the bogus and frivoulous claim immediatly. freezing an account is not right! dispute program yes but frozen accts? no! i dont know... i just hope i dont get any more of this nonsense from flake buyers and paypal actually makes the right descisions! how would you like to send off a 2000.00 item and then eat 2000.00 being forced to take a return just because a buyer didnt like it? ebay is a contract paypal is a money transfer service,unfortunatly ebay owns pay pal now and the two together can do pretty much what they want!what if i lose my 2000.00 and i get back something in the mail i never event sent?example.. not the same item or the item is actually damaged but the buyer did this to the item[like fried an expensive amp or ruined an expensive dress] what recourse would you have? not much!if any i think this is why you see so much no paypal! on ebay . i need paypal and so do the customers but they need a better system on disputes and chargebacks
