Paypal

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Aug 16, 2019
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#1
Hello, I have a Paypal account opened that I deposit cash into for my bills and have money from apps and things that I deposit into it. Well on 8-13-2019 i was going to order somethings to work on our home and all of a sudden i get an e-mail stating my Paypal account was limited. They gave me no explanation. I called and still nothing and said my money can't be touched for 180 days. That's my money and I need it to finish working on our home.
Here is my reference number PP-xxxxxxxxxxxxxxx

Edited by a moderator to remove reference number.
 
Last edited by a moderator:
Aug 16, 2019
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#3
Paypal identifies the possible reasons for this here:


Does any of this apply to you?
No. I am attaching a file as to what mine is saying
All I had coming into that account was money from apps Legit apps. Wasn't doing anything else at all with my account
Just using money from the account to pay bills, and add money from Dollar general into the account.
I have the prepaid MasterCard from them as well. They've gave me no explanation just whats in this attached file
 

Attachments

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
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www.promalvacations.com
#4
Do you work at Dollar General? How are you adding cash to PayPal?

We have company contacts for PayPal :

https://www.elliott.org/company-contacts/paypal/

PayPal and Amazon don’t always answer inquires from us so you will have to see if they give you an answer.

Here is how to escalate :

https://forum.elliott.org/threads/resolving-consumer-complaints-and-developing-a-paper-trail.8903/

Something triggered an investigation and you will need to see if you can get them to look at it and see if an error triggered something.
 
Aug 16, 2019
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#5
Do you work at Dollar General? How are you adding cash to PayPal?

We have company contacts for PayPal :

https://www.elliott.org/company-contacts/paypal/

PayPal and Amazon don’t answer inquires from us so you will have to see if they give you an answer.

Here is how to escalate :

https://forum.elliott.org/threads/resolving-consumer-complaints-and-developing-a-paper-trail.8903/

Something triggered an investigation and you will need to see if you can get them to look at it and see if an error triggered something.
No i have the PayPal pre-paid MasterCard and i had the lady at the cash register to swipe the card and added money onto it.
I've had my account with them for 3 years and i don't understand why they closed it now. I've been doing the same thing this entire time and it's limited now and i can't touch my money
I will check the contacts out and see. Thank u so so much
 
Jan 6, 2015
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#6
I suggest you go back to the web page indicated in post #2. They have a Resolution Center link you can use to remove the limitation.

Give them a week, and if no resolution you can appeal using the contacts Neil specified . . .
 
Likes: jsn55
Aug 16, 2019
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#7
I suggest you go back to the web page indicated in post #2. They have a Resolution Center link you can use to remove the limitation.

Give them a week, and if no resolution you can appeal using the contacts Neil specified . . .

I've tried that, but on mine, there's no option of resolving it. I called them and they won't even give me an explanation of why it's limited. Just said no funds can
be withdrawn only refunds.
 

Michelle Couch-Friedman

Administrator
Staff Member
Director
Sep 19, 2015
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#8
Just to clarify, PayPal does respond to our inquiries (check out Chris's PayPal story on the blog this morning) -- although in this type of case our executive contact usually will just review the situation with her team and confirm that the "account limitation" was not done in error. She is usually unable to give us the specific reason for the ban; however if the consumer has not done anything wrong the ban will be lifted and the funds released after 180 days.

This article explains what you can expect if your PayPal account is limited:

https://www.elliott.org/blog/banned-from-palpal-account-limitations/
 
Jan 6, 2015
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#9
Just to clarify, PayPal does respond to our inquiries (check out Chris's PayPal story on the blog this morning) -- although in this type of case our executive contact usually will just review the situation with her team and confirm that the "account limitation" was not done in error. She is usually unable to give us the specific reason for the ban; however if the consumer has not done anything wrong the ban will be lifted and the funds released after 180 days.

This article explains what you can expect if your PayPal account is limited:

https://www.elliott.org/blog/banned-from-palpal-account-limitations/
180 days seems an excessive amount of time to hold a person's money !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
 
Likes: jsn55
Mar 14, 2018
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#10
I've tried that, but on mine, there's no option of resolving it. I called them and they won't even give me an explanation of why it's limited. Just said no funds can
be withdrawn only refunds.
Paypal has a history of heavy-handed action when it has concerns with accounts. Many times this is justified, but they have lost lawsuits over this practice in the past.

Here's the language from Paypal's User Agreement:
You will need to resolve any issues with your account before a limitation can be removed. Normally, this is done after you provide us with the information we request. However, if we reasonably believe a risk still exists after you have provided us that information, we may take action to protect PayPal, our users, a third party, or you from reversals, fees, fines, penalties, legal and/or regulatory risks and any other liability.​

Since it says "reasonably", I would think they would need to demonstrate that their actions are reasonable. You have the option of either going to small claims court or arbitration. If your claim is for less than $10K, Paypal will pay the arbitration fees (unless your claim is frivolous).

If I were you, I would immediately send in a Notice of Dispute (see the User Agreement for info). This costs you nothing and commits you to nothing. It will, however, cause Paypal's legal team to review your case as opposed to customer service. If they reject it, you can immediately initiate arbitration at Paypal's expense (or go to small claims court). Since arbitration is expensive, their legal department will probably have a high degree of concern about the risks of your account if they let things go that far.

BTW, while this might accelerate getting your money back, it's unlikely you'd be able to use Paypal in the future. But it appears this is already the case...
 
Sep 19, 2015
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#13
180 days seems an excessive amount of time to hold a person's money !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
One reason to hold 180 days is the timeline for a chargeback -- one has 60 days from the date of a bill, and then the time it takes for the chargeback to be investigated --the company has 90 days to respond-- so this is already several months.
 
Nov 30, 2018
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#14
I don't understand why people have accounts with PayPal instead of a real bank or credit union. I surely wouldn't want my money at a place where nobody will talk to me. What is the benefit?
If the person is a small business or a seller on eBay, this allows them to accept payment by credit card, although there are other, cheaper ways.

I have also heard of people using PayPal to pay because the vendor doesn't see your credit card number.
 

Dwayne Coward

Administrator
Staff Member
Director
Apr 13, 2016
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#15
One reason to hold 180 days is the timeline for a chargeback -- one has 60 days from the date of a bill, and then the time it takes for the chargeback to be investigated --the company has 90 days to respond-- so this is already several months.

The sixty days is what is required by the FCBA, we have been informed by credit card companies that in some cases the merchant agreements allow chargebacks up to 120 days, which may better explain the length of time the money is held on these types of accounts.
 
Likes: VoR61
May 28, 2019
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#16
I can't figure out exactly what the original poster is using this account for but it sounds like it is being used for banking activities (pay bills, having cashier add money to prepaid paypal mastercard, etc.). Paypal is not a bank and affords none of the consumer protection that a traditional bank is required to provide.
 
Sep 19, 2015
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#17
The sixty days is what is required by the FCBA, we have been informed by credit card companies that in some cases the merchant agreements allow chargebacks up to 120 days, which may better explain the length of time the money is held on these types of accounts.
Thank you Dwayne for the additional information. It helps to understand the big picture. Like VoR61 I thought 180 days was a lot - but then I thought about the use of chargebacks — the I bought a non refundable ticket and disputed the charge when the airline would not refund it — and Chris Elliott’s previous article on chargebacks. I did not know that a charge may be disputed up to 120 days later depending on the merchant agreement so that puts the 180 days in a different light.

PayPal is a not really a bank but offers some bank like services— I understand many are in a difficult situation with the cost of banking.
 
Likes: VoR61

mmb

Verified Member
Jan 20, 2015
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#18
IMHO Paypal is certainly acting like a bank in many regards.

Here's the language from Paypal's User Agreement:
You will need to resolve any issues with your account before a limitation can be removed. Normally, this is done after you provide us with the information we request.

If they say they will respond, then they should. It doesn’t sound like OP has gotten any information and/or asked to submit the ‘information we request.’

The situation as described is untenable, if there are truly not any details left out.
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
19,308
17,762
113
New York
www.promalvacations.com
#19
IMHO Paypal is certainly acting like a bank in many regards.

Here's the language from Paypal's User Agreement:
You will need to resolve any issues with your account before a limitation can be removed. Normally, this is done after you provide us with the information we request.

If they say they will respond, then they should. It doesn’t sound like OP has gotten any information and/or asked to submit the ‘information we request.’

The situation as described is untenable, if there are truly not any details left out.
Which is what our company contacts and our process to use to create a paper trail usually help.