Paypal is un-American in their business practices. They stole $1000 from me, intimidated a local judge to fear allowing a small claims suit in my city and changed their national contract (presently covering 100's of millions of people) simply because of my company.
I ran $250k through Paypal's credit card merchant number over 3 years with no charge backs and no complaints. At the end of February they froze my account saying that my company did not comply with their "acceptable user" list. They sent me the list. I replied showing them where we were in compliance with all 7 of their "concerns". The next day they changed their national Paypal agreement... The only change? They eliminated the 7 concerns and simply said "no credit repair companies". (Check their agreement online folks... The latest revision is March 12th)
Now Paypal deals with thousands of companies like mine... Many much larger than mine. They claimed that when they are made aware of companies doing credit repair they shut them down (and since they changed their agreement, they took away any loophole they had for keeping large ones)... So I went to the internet and simply googled "credit repair and Paypal"... I got 15 companies in the first 3 pages. I sent them all to Paypal March 10th of this year via mail and email. As of July 6th, all are doing business with paypal and all have their logo on the front page.
Paypal said I had to sign their new agreement to cancel my account... Now read that again folks... When have you EVER had a company require you to sign a new agreement to cancel your old one? The new agreement had much stricter venue wording for suing them. I refused.
I sued them in small claims court for my balance and another $2k for business they cost me. I found a precedent law suit where a federal judge ruled Paypal could not force people to sue in their five sites around the country. The local judge sent me a one word response: "denied"... The suit was very clear and very specific. So why would this local judge run and hide his head in the sand?
Two weeks prior to Paypal cutting off my account, I sent an "Opinion Letter" to the Federal Trade Commission. The FTC determines the standards for the credit bureau industry based on their responses to these letters. This particular letter addressed mistakes that FHA lenders were making while interpreting credit reports. Correcting this error would result in literally BILLIONS of re-financed mortgages for people who need them.
In the letter I qualified myself by detailing my experience both in credit scoring and in my past employment with Trans Union and Equifax.
Yep... How could the FED appease the bureaus and stall response on an opinion letter that would open up Billions of mortgage dollars? Simple, they provide the letter to TU and Equifax to review. The bureaus, fully aware of my new business, demand that Paypal shut down this little business. The Paypal attorneys advise the local judge of the power behind the defense and he caves.
This company (Paypal) has become much too powerful folks... The mafia has nothing on them. Pay with your credit card directly... Don't get any of your funds tied up with them... Their agreement basically makes them immune from lawsuit and allows them to take your money and freeze it (indefinately) for any reason THEY choose...
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