PayPal stealing money on a Grand Scale under AUP violations

[nagadhanyamraju7]

Hey guys, there's a new trend in town by PayPal. Apparently, PayPal is resorting to stealing money from its users under alleged "Acceptable Use Policy" violations. They're charging like $2500 per alleged violation (proven or not). I am also a victim. They act as the police, prosecutor and judge themselves and are literally stealing like TENS OF MILLIONS OF DOLLARS EVERY MONTH from the users in this manner. They are doing this for no clear reason except perhaps to steal money for themselves. I believe this is a big scam going on over at PayPal and we should do something about this.

Watch this channel: https://www.youtube.com/channel/UCI_...TcG7ClOOen2FBA

https://www.paypal-community.com/t5/.../td-p/2028526#

What do you guys think? If they start doing this to all of us, they are literally going to steal all of us all's money.

[nagadhanyamraju7]

Sorry, didn't mean to create a duplicate but this isn't really a duplicate thread. This thread is for actually for finding a resolution to this issue. I do apologize but it appears that the other thread is merely for complaining and not for finding a solution. I didn't see any actual resolution or solution on that thread.

[nagadhanyamraju7]

Originally Posted by agent006140

$2500 per violation!!!!!!!

Yeah, exactly. I was surprised too but you can see on their website. They can literally wipe you out. That's what they've started doing it to people these days. I'm not kidding. They've started doing this since late 2019.

[nagadhanyamraju7]

Also, check this out: https://postimg.cc/CRrfT5t4

[nagadhanyamraju7]

Originally Posted by tinsoldier

The other thread is about finding a solution if you'd cared to read it all,then you'd have realised there isn't one unless you're willing to initiate legal proceedings.

Anyway, we're already watering down the discussion over two threads......

I'm willing to initiate legal proceeding but I believe we should all get together and find a really good lawyer, pool our money together and do it as a class-action lawsuit against PayPal. What do you think? You can pm me or post your comments here. I don't believe we should let PayPal get away with all this theft. They are literally ripping off numerous users.

[nagadhanyamraju7]

Okay, but what do you think about getting together, pooling our money and suing PayPal in a class action lawsuit? What other alternatives are there?

[bjammin]

Watch this channel: https://www.youtube.com/channel/UCI_...TcG7ClOOen2FBA

Sorry bud. But his channel was created by a dumbass. PayPal is not shutting down in 2020. They will still very much be in business. The money they are stealing from people (which I believe they are stealing it) is nothing compared to what they bring in from conducting their actual business. Yes, it sucks that they are doing it. It's vague. It's wrong (IMO).

The last thing I want to do is listen to a foreigner on youtube try to explain to me about my US paypal account. If you think it is worth it to join a class action suit, then go for it. But as most accounts are stealth accounts (meaning not actually belonging to the person who has a grievance) and are gonna be lost.

Now, I do believe they will get in trouble eventually and stop and maybe even refund. And it might be done with a class action suit. But doubtfully by a bunch of people operating stealth accounts.

I have been here too long and have heard so many times "CLASS ACTION SUIT" "CLASS ACTION SUIT" and guess what? It goes nowhere and we never hear from those people again who act like they wanted to start a revolution.

I know your intentions are good and I am not trying to belittle you or your idea. But I do not think it will get anywhere.

[nagadhanyamraju7]

Hi, thanks for your reply. My account is in my own name, it's not in someone else's name. Also, I'm pretty sure that even for those operating stealth accounts and if they can prove that they are the owner of the account(s) and were selling legitimate goods, PayPal shouldn't steal any money from them. You're allowed to change the name on a PayPal account after submitting proper documentation, I believe.

[nagadhanyamraju7]

Originally Posted by agent006140

ambulance chasing lawyers would do it for free if they see a chance of winning,you dont even have to pay them

Care to share someone's contact details if you know of a good attorney who would be willing to take my case on contingency? PM me or post their details here. Thanks a lot.

[cs38]

Originally Posted by nagadhanyamraju7

I'm willing to initiate legal proceeding but I believe we should all get together and find a really good lawyer, pool our money together and do it as a class-action lawsuit against PayPal. What do you think? You can pm me or post your comments here. I don't believe we should let PayPal get away with all this theft. They are literally ripping off numerous users.

They stole $457,000 from me, citing AUP

I am hiring a lawyer for $10,000 retainer.

[cs38]

Originally Posted by bjammin

Sorry bud. But his channel was created by a dumbass. PayPal is not shutting down in 2020. They will still very much be in business. The money they are stealing from people (which I believe they are stealing it) is nothing compared to what they bring in from conducting their actual business. Yes, it sucks that they are doing it. It's vague. It's wrong (IMO).

The last thing I want to do is listen to a foreigner on youtube try to explain to me about my US paypal account. If you think it is worth it to join a class action suit, then go for it. But as most accounts are stealth accounts (meaning not actually belonging to the person who has a grievance) and are gonna be lost.

Now, I do believe they will get in trouble eventually and stop and maybe even refund. And it might be done with a class action suit. But doubtfully by a bunch of people operating stealth accounts.

I have been here too long and have heard so many times "CLASS ACTION SUIT" "CLASS ACTION SUIT" and guess what? It goes nowhere and we never hear from those people again who act like they wanted to start a revolution.

I know your intentions are good and I am not trying to belittle you or your idea. But I do not think it will get anywhere.

FYI, NOBODY is filing class action lawsuits against Paypal anymore. the 2015 class action got paypal to change their TOS. Big lawfirm said this:

Paypal does not simply roll over with a demand letter; they fight everything); (3) Paypal’s terms and conditions mandate arbitration which is a much less favorable forum for plaintiffs than court; and (4) Paypal’s terms and conditions now contain a class action waiver which means no one can bring class actions against Paypal anymore which were the only truly viable cases (financially and legally). The U.S. Supreme Court upheld class action waivers as enforceable in 2011.

The case was called AT&T v. Concepcion and was decided in 2011. It was a 5-4 decision, which was close, and the majority opinion was written by Justice Scalia. The case decimated the class action practice and our firm started switching to other practice areas. Now, nearly every large service provider from telecommunications to cable providers to Gig economy services to applications like PayPal have binding arbitration/class action waivers.


You should retain a lawyer if you can. You can arbitrate in pro per, but it is very difficult to do so. The arbitration rules are as complex as trial court rules/procedures. If I think of anyone who might be able to help you, I will certainly let you know.

You are only allowed to start arbitration proceedings against them at ADR.org

Paypal has $457,000 of my money in different accounts, half of it they have debited to themselves citing the AUP... the other half is still there, locked, with error messages when I try to withdraw. It's been a year. Will send a 5th demand letter before finally retaining a lawyer to handle arbitration.

[agent006140]

Paypal has a list of AUP violation at its site,when you sign up with Paypal,you agree to its terms ,it is always a good idea t o review the list before you start using Paypal to accept payment,
The list is quite long-make a copy and paste it to your work station.
What did you sell?

[e2free]

Paypal can say counterfeit to any product and boom AUP violation!

[cs38]

Exactly.
Sounds like agent006140 is some Paypal lover / employee.

Endless fine print has never stood up in court.
Agreeing to illegal terms is not valid.
Loan sharks are illegal and you don't have to pay them back even if you agree to their illegal interest rates.
So... paypal does not have the right to make **** up, and take your money.
Most just give up because its not worth the cost to fight.

How about this agent006140 pos.....

If you want to buy something on ebay, nothing to do with paypal, and don't want to use your card on ebays checkout because that too is paypal powered processing your card payment, you can go buy an EBAY GIFT CARD in the grocery store. However, you will be surprised to find out that even then, to use the ebay gift code on your ebay purchase checkout, it will not work until you login to a paypal account. So, register a paypal for the sole purpose of using your ebay gift card code on the ebay checkout.

Guess what? I made a paypal just for that, the seller refunded me $3 excess shipping, and so I had a $3 balance in that paypal account. Paypal wiped it out, literally stole the $3 , as well as $72,000 and $90,000 and other amounts in my 9 selling accounts, all debited on the transactions as "Acceptable Use Policy" violation. See, I would make an account knowing it could receive payments for about 2 months, while you ignore their merchant review departments requests for all the BS documents of identity, etc, just for them to say you are selling "high risk" merchandise and they limit your account anyways, learned that long ago. But you can still receive payments for about 2 months. So, kept receiving payments, making a new account, every 2 months..... The process always worked to withdraw the funds after 180 days in each account, until Paypal started doing widespread AUP debits of balances it seems late 2019. I'm glad eBay has integrated their own payment system now, as I never wanted to use the forced paypal system. Just got to get my $457,000 balances out of paypal now through arbitration. I sent a final demand letter to them saying they can send me $450,000 or I will sue for $457,000 + punitive damages and lawyer fees so they will end up losing a million if they ignore me any further.


So, did I agree to Paypal terms when I bought an ebay gift card in the grocery store and was then forced to sign up for paypal to use the gift code on ebay checkout? Just part of my many points to slam paypal when they are going to pay up punitive damages when I get my 450K back from them....

And I was selling all kinds of things, garage sale style. I sold a blender from my kitchen, I sold sports cards from my collection, and I sold electronics that I was purchasing from amazon, etc aka drop shipping. All legitimate sales, all buyers happy, even got 1090's because Paypal reported my sales to the IRS as they do when your yearly numbers go over $20,000 or 100 transactions, so I'm liable for the taxes with the IRS.

[cs38]

FYI, this is the demand letter I just sent to paypal

Attention Paypal Litigation Department,
Your system stole $455,709.97 from me. The following 10 accounts show the amount & the date that the funds were eligible to withdraw as promised by your emails with the last account for $3 being the smoking gun:

10 account details REMOVED

I have complied with your process & sent you a Notice of Dispute via Certified Mail, 4 times, received February 27, 2020, April 10, 2020, May 18, 2020, & July 24, 2020 (See attached). You have not honored your 180 day wait for funds to be eligible, nor has this mailing process been acknowledged, despite the implication that it would be, let alone resolved, within 30 days of mailing. The previous notices were requesting the balances of only the accounts which you had debited to yourself since December 11, 2019 & various days of 2020, & giving you a deadline to resolve before litigation would commence. Now, this is the complete accounting of what you owe me for the ebay sales I received in 2018 & 2019, without issue or chargeback, & in some cases, over a year has passed since your permanent limitations on each account. Half of the funds remain in the accounts, & I have compiled many replies of lies from customer service saying that I could just withdraw the funds now, despite continued error messages when I try. In October 2020, there were recordings of your specialists on the phone opening cases, saying there will be no problem, they just had to get a restriction removed & then I could withdraw the funds. All lies as well.
You have until December 1, 2020 to send a check for $450,000 to resolve your theft & continuing damages caused to me. I understand from lawyer Anastasia Mazzella that you do not roll over with a demand letter, “they fight everything”. Apparently, my loss does not meet their threshold for representation, but she referred me to Amir Goldstein, who sued Paypal earlier this year & settled in May 2020. He wants a $15,000 retainer, to proceed in holding you accountable for this theft.
If you force my hand, & make me pay $15,000 to retain him, there will be litigation for the $455,709.97 + 126.12 CAD in actual paypal balance losses, as well as punitive damages for the following:
• You sent 1099’s to the IRS causing me great tax liability for the income of the $455,709.97 that you profited off of me when you debited my accounts to yourself, or continue to keep the balances locked from allowing me to withdraw them
(See attached example of 3 of them). The penalties & interest are accruing.
• Over $45,000 paid to eBay in 2019 for the Final Value Fees on the sales of the $457,000 that you stole.
• The 4,000+ hours worked in managing my ebay store for the payments received involving the $455,709.97 USD + 126.12 CAD balance is at minimum $80,000 in wages.
• There is over $50,000 of receipts showing cost of goods that were shipped to buyers, that you then took the gross sales & net profit of.
• The opportunity cost of not spending that 4,000+ hours from 2018-2019 on my news website, as well as suspending Youtube monetization, exceeds $100,000
• The opportunity cost of over $100,000 of not being able to invest some of the balance in the stock market where the 3 major indexes saw 35%, 29% & 22% increases.
• Continuing to pay rent, instead of buying a small home with the funds I was expecting from my balances.
• The inability to pay my $50,000 student loan debt off a year ago has harmed my credit, as well as accumulated penalties & interest.
• Lawyer fees exceeding $15,000
• Certified Mailings & other costs $100+
• Emotional distress, pain & suffering
• More to be determined
• You will end up paying me over a million dollars. If you do not settle this by Dec 1, I am forced to retain a lawyer, & punitive damages as stated above, will be pursued, & I will never settle with you. I will have a judge or arbitrator decide. I have the network to get publicity, & enough to battle you until the end.
I do not want to reward you for the unprofessional, continuous lying by your representatives all year, & the silent debits to yourself without notice right before the promised 180 day withdrawal moment, but I am willing to settle the 10 accounts that I own, for $450,000 instead of the $455,709.97 + 126.12 CAD + lawyer fees + punitive damages in order to avoid paying the lawyer $15,000 to get my money from you months from now.
You shouldn’t underestimate that 10th account involving $3, nor ruining someone’s life which is what you are doing when you take their life savings like this, after a year of dedicated hard work selling items, & especially underestimating ME. That 10th account shows a lot. See, it wasn’t even a selling account. Like everything about Paypal, I was forced to open it. I want nothing to do with Paypal anymore, & I’m glad eBay has implemented their integrated payment system. Even when someone bought something from eBay, & didn’t want to use your service or card on the Paypal powered checkout, they are still forced to sign up with Paypal. Even when using a grocery store bought eBay gift card, one is surprised to enter the code & an error message in read says you must login to a Paypal account to use the ebay gift card. That 10th account was registered for the sole purpose of doing my eBay purchases with my eBay gift cards bought from the grocery store, but still forced to login to a Paypal account to complete the purchase on eBay. The seller refunded me $3 for excess shipping, & when trying to make another purchase on eBay with another eBay gift card, the login had an error, which led me to the transaction activity to reveal that on May 12, 2020 you stole the $3 to yourself citing your new addiction, the “Acceptable Use” policy. The arbitrator / judge is not going to take kindly to this kind of brazen, outrageous, petty, systematic, abusive, arbitrary & capricious widespread theft citing AUP whenever you want. That $3 pawn is such an underestimated leading argument into your abuses & negligence. I never had an issue withdrawing my funds from identical payments received from 2014-2019 through the same ebay store that is popular to this day, now through eBay’s integrated payment system.
Please resolve this with me by December 1, 2020.

[agent006140]

c38
I DONT work for PAYPAL nor a Paypal lover.
But if you are selling blender and drop ship from AMZN,these are not AUP violations.
but you must be selling more than just blenders to accumulate almost 1/2 millions.what did you sell?
counterfeits>The only way to know someone is selling counterfeit is when someone bought from you,they dont leave feedback,they dont ask for refund or file dispute.
you need a good lawyer who understand ecommerce and how Paypal works

[LUKA77]

Have they answered you? They also have my money blocked

[prodigyace]

Originally Posted by agent006140

c38
I DONT work for PAYPAL nor a Paypal lover.
But if you are selling blender and drop ship from AMZN,these are not AUP violations.
but you must be selling more than just blenders to accumulate almost 1/2 millions.what did you sell?
counterfeits>The only way to know someone is selling counterfeit is when someone bought from you,they dont leave feedback,they dont ask for refund or file dispute.
you need a good lawyer who understand ecommerce and how Paypal works

You can actually make a lot more than half a million from blenders.

[agent006140]

depends on what you are blending.

[agent006140]

OP needs an accountant as well if Paypal is sending 1099.

[agent006140]

OP said
So, did I agree to Paypal terms when I bought an ebay gift card in the grocery store and was then forced to sign up for paypal to use the gift code on ebay checkout? .
-----------------
can Ebay giftcard be used outside Ebay?

[james_112233]

Nauseating hearing your story. I hope you get that back. Keep us posted.

Looks like if you have always sold via these methods, this is exactly what paypal are cracking down on. Allowing people to sell unverified across multiple accounts.

Has any one been done by the AUP policy in the UK ?

Originally Posted by cs38

FYI, this is the demand letter I just sent to paypal

Attention Paypal Litigation Department,
Your system stole $455,709.97 from me. The following 10 accounts show the amount & the date that the funds were eligible to withdraw as promised by your emails with the last account for $3 being the smoking gun:

10 account details REMOVED

I have complied with your process & sent you a Notice of Dispute via Certified Mail, 4 times, received February 27, 2020, April 10, 2020, May 18, 2020, & July 24, 2020 (See attached). You have not honored your 180 day wait for funds to be eligible, nor has this mailing process been acknowledged, despite the implication that it would be, let alone resolved, within 30 days of mailing. The previous notices were requesting the balances of only the accounts which you had debited to yourself since December 11, 2019 & various days of 2020, & giving you a deadline to resolve before litigation would commence. Now, this is the complete accounting of what you owe me for the ebay sales I received in 2018 & 2019, without issue or chargeback, & in some cases, over a year has passed since your permanent limitations on each account. Half of the funds remain in the accounts, & I have compiled many replies of lies from customer service saying that I could just withdraw the funds now, despite continued error messages when I try. In October 2020, there were recordings of your specialists on the phone opening cases, saying there will be no problem, they just had to get a restriction removed & then I could withdraw the funds. All lies as well.
You have until December 1, 2020 to send a check for $450,000 to resolve your theft & continuing damages caused to me. I understand from lawyer Anastasia Mazzella that you do not roll over with a demand letter, “they fight everything”. Apparently, my loss does not meet their threshold for representation, but she referred me to Amir Goldstein, who sued Paypal earlier this year & settled in May 2020. He wants a $15,000 retainer, to proceed in holding you accountable for this theft.
If you force my hand, & make me pay $15,000 to retain him, there will be litigation for the $455,709.97 + 126.12 CAD in actual paypal balance losses, as well as punitive damages for the following:
• You sent 1099’s to the IRS causing me great tax liability for the income of the $455,709.97 that you profited off of me when you debited my accounts to yourself, or continue to keep the balances locked from allowing me to withdraw them
(See attached example of 3 of them). The penalties & interest are accruing.
• Over $45,000 paid to eBay in 2019 for the Final Value Fees on the sales of the $457,000 that you stole.
• The 4,000+ hours worked in managing my ebay store for the payments received involving the $455,709.97 USD + 126.12 CAD balance is at minimum $80,000 in wages.
• There is over $50,000 of receipts showing cost of goods that were shipped to buyers, that you then took the gross sales & net profit of.
• The opportunity cost of not spending that 4,000+ hours from 2018-2019 on my news website, as well as suspending Youtube monetization, exceeds $100,000
• The opportunity cost of over $100,000 of not being able to invest some of the balance in the stock market where the 3 major indexes saw 35%, 29% & 22% increases.
• Continuing to pay rent, instead of buying a small home with the funds I was expecting from my balances.
• The inability to pay my $50,000 student loan debt off a year ago has harmed my credit, as well as accumulated penalties & interest.
• Lawyer fees exceeding $15,000
• Certified Mailings & other costs $100+
• Emotional distress, pain & suffering
• More to be determined
• You will end up paying me over a million dollars. If you do not settle this by Dec 1, I am forced to retain a lawyer, & punitive damages as stated above, will be pursued, & I will never settle with you. I will have a judge or arbitrator decide. I have the network to get publicity, & enough to battle you until the end.
I do not want to reward you for the unprofessional, continuous lying by your representatives all year, & the silent debits to yourself without notice right before the promised 180 day withdrawal moment, but I am willing to settle the 10 accounts that I own, for $450,000 instead of the $455,709.97 + 126.12 CAD + lawyer fees + punitive damages in order to avoid paying the lawyer $15,000 to get my money from you months from now.
You shouldn’t underestimate that 10th account involving $3, nor ruining someone’s life which is what you are doing when you take their life savings like this, after a year of dedicated hard work selling items, & especially underestimating ME. That 10th account shows a lot. See, it wasn’t even a selling account. Like everything about Paypal, I was forced to open it. I want nothing to do with Paypal anymore, & I’m glad eBay has implemented their integrated payment system. Even when someone bought something from eBay, & didn’t want to use your service or card on the Paypal powered checkout, they are still forced to sign up with Paypal. Even when using a grocery store bought eBay gift card, one is surprised to enter the code & an error message in read says you must login to a Paypal account to use the ebay gift card. That 10th account was registered for the sole purpose of doing my eBay purchases with my eBay gift cards bought from the grocery store, but still forced to login to a Paypal account to complete the purchase on eBay. The seller refunded me $3 for excess shipping, & when trying to make another purchase on eBay with another eBay gift card, the login had an error, which led me to the transaction activity to reveal that on May 12, 2020 you stole the $3 to yourself citing your new addiction, the “Acceptable Use” policy. The arbitrator / judge is not going to take kindly to this kind of brazen, outrageous, petty, systematic, abusive, arbitrary & capricious widespread theft citing AUP whenever you want. That $3 pawn is such an underestimated leading argument into your abuses & negligence. I never had an issue withdrawing my funds from identical payments received from 2014-2019 through the same ebay store that is popular to this day, now through eBay’s integrated payment system.
Please resolve this with me by December 1, 2020.