| alwayshere | 12-05-2017 11:39 PM |
Re:RESOLVED Negative Balance from another account - Account limited now
I want to give everyone an update on this. Firstly, thanks for everyone who has given their thoughts on my debacle, it has certainly given me strength to fight Paypal. Secondly, for future Australian (even international) Paypal users that run into issues with Paypal, there is hope.
Long story short is I managed to get all of my funds released to me recently. What I have learnt is FoS (financial Ombudsman) and the local courts are actually quite powerful, especially if you know how to leverage them
I think its useful to document below the experience that I have had and the various thought processes along the way. If anyone has questions, feel free to reach out to me directly. If there is merit in actually having some sort of sticky, I'm happy to go into more detail and provide sample forms for all to reference in the future.
Background to my issue:
- In 2014, a scammer took me for $1,500 when he claimed not as described and then returned a package with anything but the original item. I spoke to Paypal who didn't care as it was confirmed delivered and refunded the buyer. However, as I had already withdrawn the funds into my bank, my paypal account then went into negative balance. I spent some time trying to plead my case with Paypal, all fell on deaf ears so I opened a new account, moved on and continued to sell.
- In 2017, through sheer luck, Paypal connected the new account with the old account and added the limitation. The outstanding balance in the new account happened to be around $3,000. They said the only way I can access my fund is if I paid off the negative balance.
- From then to recent, I tried going back and forth with the Paypal executive escalation team with no luck. They kept insisting that the negative balance needed to be paid off, despite my claims that I was scammed in 2014. I threatened legal action only to be countered saying they have their own legal team and happy to defend (in my opinion, just hot air now that I've moved through the whole process).
So with the background layered, this is what I did in response.
1) I filed a complaint with FoS, a few pages to fill out and you speak to their team and they make a decision which Paypal has to obliged with. However, for my case, FoS could only force Paypal to release half the funds (i.e. the excess amount which was $3,000 less $1,500) stating that Paypal had no rights over the excess as the negative balance was only $1,500. However, it was a win in my mind - having Paypal release half the funds is half the battle already.
2) I followed up with Paypal's executive escalation team saying they should consider releasing the other half otherwise I will go to small claims court. They refused and effectively said "see you in court".
3) I filed a claim with my local small claims court and served them with an affidavit seeking full amount plus legal filing fees plus interest.
4) One week later, I receive an email from Paypal saying funds are available for withdraw and a credit for the legal filing fees and interest.
I suggest everyone who is currently having issues with Paypal consider the above steps (i'm sure U.S. and U.K have similar authorities that could help). My opinion is if you take them to court, if its for a nominal amount, they won't contest it as it will cost them more to send legal representative and will likely lose the case also given most courts will see consumers more favourably.
I urge you all to share this story as well with others who are having Paypal issues as spreading the word strengthens us all. In one of my emails to Paypal, I told them that if they don't release the funds by a given date (and without me having to resort to court), I would spread the word of my journey on social media and other anti-Paypal websites.... here's to starting! | 
