Paypal CAN take money out of your bank account
I have just discovered that Paypal have tried to WITHDRAW money from my bank account.
As you know we all have to complete the direct debit mandate when we sign up for Paypal as part of confirming the Bank Account that what put on file with them.
Part of this confirmation involves completing a direct debit form.
Anyway I removed my bank account so it was NOT EVEN on file with them. The Paypal account fell into a negative balance, and they sent me emails asking me to add funds, which I ignored. They limited my account so I figured they could wait for their money.
Anyway got this email today:
Dear Mr *****
On , we attempted to transfer from your bank account, ending in . This transfer was returned by your bank on for the reason below:
There was a bank processing error.
As a result, this bank account has been removed from your PayPal account. Please contact your bank for more information or add a new bank account. Please do not contact PayPal because this is entirely an issue between the account holder and their bank.
Yours sincerely,
PayPal
N.B I had already removed the account and then cancelled the account. If I had not cancelled it then I assume that they would have debited funds.
The other email I got from the prior to this was:
Dear Mr ******
The mandate from your bank account, ending in 7686, was returned by your bank on 26 Nov 2009 for the reason below:
The bank is disputing the Direct Debit Instruction (DDI).
So they tried unsuccessfully to remove funds.
The moral to the story is 1 Paypal account, 1 Bank Account. If you lose the Paypal account, cancel the bank account.
This is my first experience that they try to remove funds without your authorisation, but then when you think about it I guess that is the whole point of the direct debit.
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