I just got the letter today from Paypal, stating they're taking $500 out of my balance and then holding 5% from every sale from this point forward. They say the funds will be released in 90 days. I'll post the letter below. Looks like my crappy credit was a major contributing factor, according to them. (I didn't know Paypal runs credit whenever they feel like it!) Dear xxx:
During a recent review of your PayPal account the determination was made
to apply a collateral and rolling reserve to the account beginning
02/17/2010.
A collateral amount of $500.00 will be set aside from your current
available balance as of the above date. Additionally a rolling reserve
will be set at 5% of the processed amount for each day, to be held for a
90 day rolling period beginning on the above date.
An example of a Rolling Reserve: 5% of the payments you receive are held
at the end of the first day and will be released on day 05/17/2010, 5%
of your payments are held at the end of the second day and will be
released on day 05/18/2010, and so on.
The decision regarding your reserves setting was based on the review of
the risk exposure inherent to your account and was made in part from
information obtained through the consumer reporting agency identified
below. A risk review is the evaluation of several factors related to an
account, which include but are not limited to transactional activity,
customer disputes, type of business, credit attributes, delivery and
customer satisfaction time frames.
Reserves are funds that belong to you, but are set aside to ensure your
account can cover transaction liabilities. You will be notified if your
reserve settings are adjusted in the future.
Sincerely,
Kevin
Merchant Risk Mitigation Specialist
PayPal
402-516-9394
1 Reference User Agreement Article No. 10.7
2 The decision regarding your reserve setting was made in part from
information obtained through the consumer reporting agency identified
below. Please note that the following credit reporting agency does not
make these decisions and is unable to provide you with the specific
reasons for your reserve settings.
In accordance with the Fair Credit Reporting Act, you have the right to
obtain a free copy of your consumer report within 60 days by contacting
the consumer reporting agency at the address and telephone number below.
You also have the right to obtain one free credit report annually from
each of the national consumer reporting agencies. Please refer to these
documents if you have further questions. You have the right to dispute
the accuracy or completeness of the information contained in the report
by contacting the consumer reporting agency.
Consumer:
Equifax Credit Information Services, Inc.
P.O. Box 740241
Atlanta, GA 30374
(800) 685-1111
Any dispute regarding the information on your report must be resolved
with the agency above. |