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Ebay Gift Card Balance attached to a Permanently Limited Paypal Account
 

Several weeks ago, I opened a discussion forum about my $355 ebay gift card balance attached to my Permanently limited paypal account.
After several attempt to get my ebay gift card balance back, Paypal refused it. So I sent a consumer complaint letter to my state Attorney General's Office (state of Maryland), and my case has been accepted, and I received a phone call from the Consumer protection office for me to clarify what happened. So I explained fully, and she (mediator) thought that Paypal(eBay) was doing very deceptive business practice since my ebay gift cards had been fully paid for (not stolen). The very next day, I received a copy of letter that my mediator sent a letter to Paypal Executive Escalations office.

I think Paypal will refund my ebay gift card balance. Let's see what happens. If Paypal doesn't cooperate with mediator, I'm not sure what my Attorney General's office mediator will do, but I think I have all evidence to bring to a small court later.

Anyone who are in similar situation, please do not sit silently. Let your voice heard and make Paypal either remove your limitation and do the right thing.

Keep us updated and good luck!

Good proaction - hope it works out - pa yp al is known to STALL on matters...

Stay in contact with your case worker at least once a week, but be very polite. Did you download your log and terms of service yet?

Similar Situation
 

My case if very similar to yours. I am in California.
I am out around $500 dollars.
Can you provide me with any helpful information you have learned in the process. I am getting ready to send my letter to our Attorney General and file a small claims case against them.

I finally got a refund from Paypal Executive Escalation office after they received several letter from my state Attorney General's Consumer Complaint Division. I sent a detail message in writing about what happened to my gift card balance of about $350 to consumer complaint division of AG office of the state of Maryland. Mediator called me to clarify her understanding. After I answered several her questions, she sent an official letter to Paypal Executive Escalation office. They exchange several letter in which Paypal explained that customer has already used the gift card, so there was no fund to refund. Also Paypal explain that gift card is nonrefundable to cash. However, they explain that they gonna refund the gift card balance to my paypal account so that I could withdraw money. Paypal seemed that they didn't want acknowledge that they are doing bad business practice with ebay gift card.
I fully explained to Consumer Complaint division that Paypal's excuse not to refund didn't make any sense since Paypal is the one that reversed the ebay transaction, which resulted in my ebay gift card attachment with big balance.
After about a month waiting, Paypal finally credit the ebay balance to my limited Paypal account balance. So I immediately withdrew the balance to my bank account. It looks like Paypal has ability to allow limited paypal account holder to withdraw money for a short period of time.
Good luck!!! Please don't give up. That's your money you paid for. Paypal has no right to keep those balance by limiting customer's account permanently.

Good conclusion after a lot of work.

Since you're in CA, it would be easier to take them to small claims. The AG route requires a functional government bureaucracy.

Check the OP's original post on the issue. It was a clear cut that PP was at fault and he had nothing to hide. Not sure what your circumstances are.

Can you post the hi quality scan of the letter with your private details blacked out? I have a couple of letters to send paypal. I have the letterhead form my states attorney general, but I think the California one would hold more weight.

@besttimedeals - best to deal with this via PM - out in the open like this = YIKES