What is wrong with Paypal?

What is wrong with Paypal?




PayPal froze my account, what do I do to get it unfrozen?
See PayPal Frozen Accounts Page.


I paid for an item using Paypal but I never recieved it (or I got defective merchandise, or merchandise that was different from advertised, or a box or rocks, whatever…) I tried to contact the seller, but they are a low-down-dirty-rotten-scoundrel and laughed at me. I asked Paypal to investigate. Paypal says, yes, it’s the sellers fault, but there is no money in the scoundrels account. What can I do?
See PayPal Help.


I am a seller on ebay and have been using PayPal for a while. I just recently received a chargeback from one of my buyers and PayPal debited me over 500 dollars causing me to go negative 500 dollars. Is there anyway to dispute this now. I know they will send a letter from a credit agency if I dont pay them. Can I take them to small claims court?

As for taking anyone to court, yes, you can take the buyer to court. If you win there, that’d be plenty to get the credit card company to reverse the chargeback. Realize, Paypal is probably going to hound you for the money till you get a court order, and will freeze your account unless you pay them back first. 😦
Also see my NCO – Debt Collection article.


How do I contact the lawyers doing the class action lawsuit again PayPal?
Note: This class action lawsuit is, for the most part, settled. All deadlines have passed and we are just waiting for the checks to be sent. There is talk of starting a new one by many members of this site and others. Stay tuned… The original site is http://www.girardgibbs.com/ Also see this thread for a recent news and the settlement website for more information. There are no other legitimate class action lawsuits against PayPal, although there are sites that suggest otherwise. Also the time has passed to put in a claim on this lawsuit.


Do you have copies of the Lawsuit Settlement FAQs?
Sure do. These are on our server, so they should always be available. PayPal Class Action Lawsuit Settlement FAQs, by Girard Gibbs & De Bartolomeo


Do you have copies of the Settlement Agreement?
Yes, sure do. These are also on our server. Here are the PDF files:
PayPal Lawsuit Settlement Agreement
PayPal Lawsuit Notice
PayPal Lawsuit Plan of Allocation
PayPal Lawsuit Summary Notice


Can I donate to this site?
This is a question we get asked everyday. Really, all we ask is that you tell others about the site. We ask that you use a PayPal alternative. (Even go back to checks and money orders.) If you want to donate to the site, just donate to your favorite charity in our name, or donate money to the tsunamis victims. Our purpose is to expose PayPal, not collect money from the victims of PayPal.


How do I close my PayPal account? Answer 1.
You’ll have to log into your account first. Then click on “help,” then “contact us” and then on the left click on “account basics,” then “my profile,” and the right bottom you’ll see “How do I close my PayPal account?” We also recommend that you remove any checking and credit card accounts before you close your account, if you can. The problem is, Paypal keeps that information forever. But removing it shows your intent, and if the account gets hacked, it’s less likely that the hacker will be able to access your accounts. However, we’ve been told by others that once you remove the information, you can’t close the account. Like a catch-22. I don’t know what the answer is if that is true. For me, it’s better to just remove all info, including email accounts, create a yahoo or hotmail email account and use that, and then sending them a written certified letter with proof of delivery, that you want to close your account.

How do I close my PayPal account? Answer 2
A visitor to sent us this: I just read a lot on your site, and it did prompt me to close my PayPal account. I’d only opened it a couple days ago, but your site just reminded me that they could very well get hacked into, and my account could be at risk. I was afraid PayPal could withdraw funds without my consent, but it never occured to me that they were such a target for hacking. Anyway, I wanted to inform you that I was able to first remove my bank account by first logging in, then by selecting Profile Summary, then clicking Financial Information. They then loaded a page that had my account status and I was able to select to remove it there. Then, I hit ‘back’ to get to the Profile Summary page again and selected Close Account. After a few pages of clicking yes and providing a reason, I closed the account w/out the need for confirmation emails or anything. I just wanted you to know so that you could provide the information if you wanted. (Thanks M!)


What if I just stop using my PayPal account, am I still at risk?
In my opinion, yes. One of the biggest problems is the spoof emails. (Email that says “click here to update your PayPal info…”) which takes you to a site that looks like PayPal, but is not, ie, a paypal spoof site. You put in your info, (login and password) they say thank you, then they run over to the real PayPal site and clean out your account (if any money is there) PLUS try to put in charges to your cc or bank accounts.

I recommend closing all checking and credit cards that have ever been associated with your PayPal account. The reason for this is: If a criminal uses a spoof site to access your account, Paypal will still try to take the money from you, because their position is “our security is perfect” and if someone logged into your account and spent money, they will say it was you, and try to take it out of your bank/cc account again. (ie, PayPal is forcing you to fund the criminals actions.)

The only safe thing is to close those accounts at the bank, and/or put in a stop order at the bank restricting PayPal from accessing your accounts.


Paypal said they will send my money after 180 days. Will they?
If your situation was “an honest mistake” like forgot password, minor created account but with permission of adult, etc. probably yes. If it’s anything else, probably yes, but maybe no. If you are semi-legal or out right illegal, probably not. (We do not speak for PayPal. This information comes from the users of the forum and email from users of this site. It’s general information only, and the specifics of your account will be the deciding factor.) Some have said they waited almost an entire year and did not get back their money. We don’t know the details of the case, but are just repeating what others have told us.


What other service can I use to accept card cards if not PayPal?
See the Options Page. We also suggest going back to checks and money orders until you find a suitable alternative. If you do enough volume in sales, then a merchant account would be a better choice.


I only use Paypal to buy things. Am I at risk?
See the above regarding what happens if you send money to a scoundrel or accidently get caught by a spoofer. Also, Paypal has been hacked in the past and a frequent target of scammers and hackers. Your account could be hijacked and you won’t know about it until it’s too late. Start here for more detailed info.


I keep getting an error trying to log in to the forums:


YOU have attempted to gain unauthorized access to the forum management system!


Sorry about that. First thing to do is make sure you are not already logged in. Sometimes if you click the “login” button more than once, you’ll get this error. Look at the first light colored box and if it says “Hello [your user name]” you are already logged in. If you are not, but stil get this error, try this: Clear your browsers cache, (On MSIE, it’s “tools” “options” then under “temporary internet files” click on “delete.” Then close all browser windows.) Then open MSIE again and goto http://PaypalSucks.com/forums and first thing, click on “login.” If you still get the same page, just hit refresh or reload a couple of times. Should be good to go after that. If not, then most likely you are behind a firewall or using a software filewall like Norton. You’ll need to contact your firewall administrator to find a way around it.


By the way, is it just me, or is this forum really hard to navigate around? With a very long thread how does one go straight to the end?
When you log in, and click on one of the forum categories, for instance, the “NoPayPal: Horror Stories” forum, you’ll see over on the left a list of topics. If the topic goes more than one page, you’ll see (1,2,3…) Just click on the highest number and you’ll go to the last page.

Also, you can set “your information” to show up to 50 posts at a time. Makes it faster to navigate through the posts.


How do you keep the domain “PayPalSucks.com?” Have they sent you threat letter?
See the Domain Name Dispute Page.


On the front page of this site, you said “According to PayPal accepting their ToS (Terms of Service) in effect means you waive your rights to credit card consumer protection laws against unauthorized charges, and that you may not issue a chargeback for anything you purchase using your credit card and PayPal account that you are unsatisfied with.” Can you please explain that?
See the Credit Card Waiver Page


Long question:I’m a new ebayer. Unfortunately my first encounter with PayPal was not a pleasant one. I just set up a new account with PayPal and sold an item for approx. $390.00. To my surprise I tried to pay my ebay account and found out that I have no sending limit because I’m not “authenticated”. I contacted PayPal and was informed that there are two ways to become verified (credit card/checking) which I am not eligible for neither due to financial hardship. I was then informed that I couldn’t do anything with the funds until I met verification requirements!! Then they told me to refund the gentleman who bought my item, but the item has been sent already!! The worst part of this whole scam is that if one of these two items are required for verification then why does PayPal allow new people to set up an account and collect funds, that the costumer can’t access? Only they can reap the benefits of this transaction, because they have my money and the gentleman already received the product. I have contacted PayPal and ebay concerning the problem and have been unsuccessful at any and all attempts to resolve the problem!! I asked for the number to their head quarters to file a complaint and was denied. Is there any action that I can take to resolve this issue or am I just at the mercy of PayPal like the hundreds of other helpless victims with threads posted on this sight?

To me, the key point is that when you sign up they do not disclose such important information openly and clearly. I have read the current ToS and they are already in violation of it. It states “$500” they “may” require additional information. One of them is your Social Security Number. I know that requirement is in violation of the Privacy Act of 1974. But regardless, your amount is under $500, so they are not following their own ToS. But furthermore, clearly something like this needs to be out in the open (this layman’s opinion) and for them not to disclose it, and then not follow their own ToS is a fraud. In addition, at the bottom of the ToS it states:


Additionally, you may report complaints to the Complaint Assistance
Unit of the Division of Consumer Services of the Department of Consumer
Affairs by contacting them in writing at 400 R Street, Sacramento,
California 95814, or by telephone at (800) 952-5210. 

So if I were you, I’d be calling that number right now. 🙂 I’d also recommend you contact your attorney general and write letters to the AG’s in Calif. and Nebraska.

That’s just my opinion.


Do you have suggestions on how to buy online safely?
Sure do. In fact, we get this question alot, so I created my How to protect yourself when making online purchases and avoid being ripped off page. 😉


I heard PayPal’s TOS was declared void. Do you have that decision?
Sure do. Click here for the Fogel Decision (Opens a PDF in a new window.)


Why do you hate PayPal?
We don’t hate PayPal. (Okay, maybe a little…) We were one of their earliest users, and we “toughed it out” like everyone else during those days. We stayed loyal to PayPal during the outages; the crashes; even the ugly “orange on white/orange on gray” website. 😉. What we don’t like is how they have treated us and others since those early years. We’d be very happy if PayPal would stop abusing people, start recognizing traditional banking laws, and get rid of the fee to transfer Paypal funds from user to user. (non-credit card funds.) We also don’t like being hung up on when we call (a frequent occurance if you read the forums) and we don’t like the stupid (and we do mean stupid) responses from their first level “customer service” representatives. Issues that could be solved in 5 minutes takes weeks, even months to be resolved. Also the automated email messages that have nothing to do with your questions are annoying too.


Then why are you trying to “bring them down?”
We are not trying to “bring them down.” We want PayPal. We need them for our business. We loved the idea that the “little guy” could now compete with traditional businesses and big corporations. But here’s the problem: You can’t do business with a company that doesn’t respect your rights. With PayPal, you never know what egg shell you might step on (ie, break one of their rules or undisclosed policies) that will explode in your face. (ie, get your account frozen) And you really have no appeals process.


Be sure you have a lawyer go over every line, every time it’s updated!


I’ve been ripped off by PayPal, what can I really do?
You have to become an activist. You are going to contact a lot of people and make a lot of noise. Here’s one guys plan. At a very minimum, you need to write a letter to your state’s attorney general, and the California and Nebraska attorneys general informing them of your problems with PayPal. You can find this information on the links page. Also see the sitemap.


How do I join the class action lawsuit?
The only legimimate lawsuit is now closed. If we find other legitimate suits that have been filed, we’ll put their links here.


Has anyone actually won a law suit against PayPal?
Based on the email we get and at least one media report, yes. A man in California sued to have his account “unfrozen” and money returned. We don’t have any more details than that. Others have emailed us stating that they hired an attorney and the attorney’s original contact was enough to get their Paypal account in order.


Why are so many people angry at PayPal?
Read the forums.









Does The White House Have Paypal Hide Your Money If You Say Something Bad About Obama?




By Susan Hunter




Paypal is one of Obama’s biggest financiers. Like the NSA, Paypal knows everything you buy but it also knows about all of the money you make and where you keep it. A number of public policy advocates have set-up online stores to fund themselves but then found their revenue cut-off. Paypal has now been sued, in multiple cases, for hiding, holding and freezing people’s incomes. A large number of entrepreneurs, who criticized the White House saw their payments from their online stores never process through. Many are wondering if this is a punitive measure to cut off their resources in retribution for back-sassing Obama or his staff?




PayPal To Settle $3.2 Million Class Action Lawsuit | Stock News …




1 Feb 2016 … PayPal agreed to pay $3.2 million to settle a class action lawsuit over freezing accounts.






PayPal Says It May Face U.S. Lawsuit by June – WSJ




11 Apr 2015 … EBay Inc.’s PayPal payments unit may be sued by a U.S. regulator over allegedly excessive finance charges for a same-day lending service.






FAQs page – PayPal




PayPal used to be the best thing on the web. That was until X.com bought them and their greed overran their brains.






PayPal hit by class-action suit – CNET




Disgruntled customers have filed a lawsuit over the way the company locks people’s accounts if it suspects that fraud played a part in a transaction.








Coping with PayPal Payment Holds | SaleHoo




Erika Garnica, eBay PowerSeller and ex eBay Top Seller account manager, explains how to avoid Paypal holds. Reads this and avoid getting your money held up in PayPal …


bing yahoo




PayPal Steals from Its Customers with Hidden Fees




PayPal is stealing from its customers with carefully hidden fees (with no receipts). They’re charging the fees even when there’s no reason for them.


bing yahoo






About the Pros & Cons of Using PayPal | eHow




About the Pros & Cons of Using PayPal. PayPal is one of the most widely used online payment system on the Internet today. Though highly convenient as a source of e …