Paypal Class Action Lawsuit

[deltadelta48]

Sorry Hillbilly, what a mess.

Bottom line is that PP is owned by feebay and over the years PP got sloppier and sloppier with how they did business. Employees don't care and are not paid to think, question policies and work for doing the best for the sellers. When a new rule gets put in place, someone makes sure it makes sense. Sure did not help you.

Here is a suggestion to get an answer out of PP. Works great. Write a letter to the State Attorney General of Kentucky, Consumer Protection Division and tell them what happened. Give them some idea how much you paid in fees per year to PP in your letter because it gets their attention fast. This letter stays on file in Kentucky for years and public as access to it so feel free to give all details. Tell them about the scam, the suspensions, etc. They will contact PP, and give PP a deadline to rely to your problems/suspension. PP will call you and probably reinstate both of you. This worked when feebay did it to me. Very fast too.

Point out that PP failed to help you during the time of the scam and does not seem to have any plan in place to help customers in those situations. They only can suspend you both on a technicality (address), when you were the victim of a scam that they took no interest in preventing. They will have to answer ANYTHING that you bring up at that time, and answer it via letter to the State Attorney General. Believe me, it works better than a dope slap to get their attention. A financial company that does not take active role in protecting customers from faud? Financial company taking in billions a year, can't discipline a drop shipper who cheats someone (and probably is a good customer of theirs, and still is)? Whole thing stinks and proves they are not doing their job.

Also, in our business, we do lose customers if we do not have a payment plan they trust, which unfortunately is PP. Seems that 99.9% of my customers want to use it. If you or wife are selling here, that may lose you some sales, which you should tell the State of Kentucky too. Give them an estimate on how many sales you lost and how much it cost you since the suspension. It is serious to be suspended, and costs small businesses money, so PP has to be careful in doling out its punishment, especially after you explained the problem to them numerous times. Again, they have no plan in place to be responsive to customer problems.

I still use PP and sort of like it because in more than a year have not had any trouble at all. But had plenty when I was on feebay using it. Customers like it.

This inability to catch or see scammers is going to be their downfall. Scammers know that PP will stand on their side because it is not equipped to detect or handle fraud. Its like they are years behind the times and have never taken any steps to protect buyers. Members have had horrible things happen, not even getting their own items returned, and PP does nothing. Buyer returned something in a trackable box. Case closed. Not hardly!

Good luck, tell us what happens.

[oldhillbilly]

Thank you for that info deltadelta48! I appreciate it and will be trying that.

[waterlily]

I've never had that happen before. But I don't sell high value items either. It would be nice to see them lose it!

[Juliebabe25]

@OldHillBilly

I have been with Paypal for 18 months now in a small way, no problems, I think the facility they offer is great.
But I have heard of stories such as yours, and they are really scarey !
I feel really sorry for you, because it can obviously affect your business in a major way.

There needs to be some agency that people can go to.

[oldhillbilly]

Juliebabe25 - I have been using PayPal since '99 with very little if any problems until recently. No disputes, no hassles and no charge backs or anything like that. I never really believed anyone who said 'my account was closed and I did no wrong' claims. I just assumed they werent telling the truth. But now I know better and after doing some searching online I find it not an unusual problem.

[Bitsofthis]

I sold on Ebay for years, I wasnt a huge seller, just things that I no longer wanted. When we were selling our house I decided to do a massive clear out. I listed alot of things and had quite a bit in my PP account. When I went to withdraw it I found my account was restricted. I completed all the requirements that they wanted but it remained restricted. I phone PP who said I had unusual activity in my account, I explained about the house clearance but it fell on deaf ears. I was told by the lady on the phone that I was a risk!! I phoned several more times but got nowhere.

I had to get a solicitor to help me get the money, PP tried to say that i had nothing in my account!! It did go on for a while but I eventually got my money back and PP closed my account.

It makes it so hard for me now to sell online. Buyers want PP, I cant take it.

[MagnetsAndHangers]

Every financial institution, whether on line or otherwise, has horror stories attached to it - people have lost their houses, businesses etc etc. Whilst those it happens to has my sympathy, paypal have millions of users, so there has to be bundles of such stories. And although it can affect ones online business to have paypal close the a/c down, there are lots of other payment methods.
Ive yet to hear of someone losing their house because of paypal - but that happens every day with banks etc.

[stylusman]

the main reason i left feebay is due to the way feebay and paypal have done buisness I sold a laptop on feebay for £600 and paypal held funds contacted them and asked them why and they advised that they can not share that information with me so when i refused to send out laptop until payment was cleared they suspended my ebay account costing me around £800 a week in lost profits then of course the buyer opened up a claim against me and things started to get very messy in the end i told ebay to shove my account as they were still charging me for all my listings each month 400 listings even though account was suspended and none of my listings were shown they even had the cheek to send me a solicitors letter. In the end the funds cleared no explanation was given and they refused to even after my solicitor contacted them . Lucky enough my customer was very understanding and infact we both left in the end. I sold all my stock off and then came across this lovely site where the people are alot more friendlier and the admin seem human unlike the robots at feebay. Warning never ever trust feebay they dont care about us they just care about their back pocket which is what more and more people are realising and that can only be good for ebid. am very tempted to contact this firm but ay be expensive as i in uk

[stylusman]

One more quick thing i have noted no one seems to have problems with paypal until feebay are involved with the transaction coincidence i think not !

[deltadelta48]

One more quick thing i have noted no one seems to have problems with paypal until feebay are involved with the transaction coincidence i think not !

No coincidence! They would do well to keep the two separate. They do share information which is not good. Just like both of them to do something, hold funds, and then say they don't know why or can't tell you why. Makes sense! I suspect many people began to do what you did, hold item until you got money, and that messed up their little scheme to hold it for a while until they "checked out seller"? or whatever they were doing. With 220 million accounts on PP, even holding back a few bucks means lots of money in their pockets. A hardship to sellers, but what the heck, business is business, eh?

You will find PP does not hold funds here. In a year and a half I have not had a speck of trouble with them. feebay's sales are sinking each month, PP's business on other venues is keeping the whole place afloat. Awwww!

Welcome to ebid. If you need any help, someone is always here to answer your questions. Read the forums, get the tips, and you will be selling in no time.