I occasionally sell items I get from various sources (goodwill shopping, closed business auctions, etc.) via eBay and referrals from previous sales. I have always used PayPal to receive the payments for these sales because they put themselves out to protect the seller, regardless of whether you use eBay to sell the item.
Recently, PayPal limited my account because they said there was a balance from an old account that needed to be cleared up. I looked into the information they gave me, and although I did not entirely agree with them, I paid the negative balance they said that account had. After all, they were holding the proceeds of over $1000. After a few days they took the limitation off my PayPal account, but they never lifted the limitation on my eBay seller account, which left me able to sell only to referrals or other sources.
Within 2 days of receiving funds for sales that, by the way, were not through eBay, PayPal once again put a limitation on my PayPal account. The limitation said there were two other emails from other PayPal accounts that were somehow attached to my account. Instead of letting that hold up my account even longer, I once again cut my losses and paid them for that as well. But before they lifted any limitations, they said items had to show as delivered.
I quickly told the customer service rep that after years of doing business with eBay and PayPal, I have never had a complaint that I did not ship something I sold.
Now they are holding over $1200 of mine and saying they have to verify these items are received before they will release any of the funds in my account.
Did I mention that I told the customer service rep that I put insurance and signature confirmation on all the packages, out of my own pocket and not the buyers'? She said it did not matter, and in her words, "we are allowed to hold the funds when you are dealing with a Financial Institution." What? A financial institution? I researched all the reasons why PayPal reportedly gets away with this kind of thing, and it was because they were not "a financial institution" held to the same regulations as one. I bet the Federal Reserve would like to know the reasoning they gave me today.
Now they are a shipment tracking company as well. Go figure! It is funny that on California's BBB site they have an A rating, but they have had over 7200 complaints, and the TRUSTLINK on the BBB site, when you click on it, has them rated at only one star. Wow, Toyota did not even have that many complaints before they were brought in to answer to the government. Also, under the BBB of California there is a contact name given as Kyle S (last name left out for privacy) and a phone number that is just a line to the same automated customer service I have already been directed to without any resolution to the issues.
I wanted to put my story out there as I begin multi-faceted complaints to the US Federal Reserve, the Attorneys General of my state, California, and of the states of the individuals who purchased from me, and then to the individual BBBs.
PayPal is not limiting my account because of negative balances now, which is what they originally stated the reason was. Now they say I have to wait for shipments to be received, a limitation that was added later, and I have never had a complaint that I did not ship something.
PayPal needs to stop lying to people about why they are holding accounts and limiting my eBay account over something totally unrelated to eBay.
If you do business with PayPal, BEWARE! Once your account is limited, your money is gone! Good luck.
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