PayPal's damages caused by Acceptable Use Policy violation

[james_112233]

If you are totally legit and not stealth I would be fighting for that money.

[fiercygoat]

Same here. $3800 vanished yesterday

Paypal is turning into thieves with no morals.

[agent006140]

what kind of supplements did you sell?

[Wesker]

Originally Posted by james_112233

If you are totally legit and not stealth I would be fighting for that money.

Yes I will eventually fight for the money but I need to do so properly.

They were a couple of paypal accounts. All of them under legit names (one under my name, other wives etc, no SSN were entered I believe, 1 legit Tax ID, addresses/phone numbers except for 1 are out of date, everything looks good for the most part.

However, they didn't take the funds because it's a stealth account. They took them as noted in the Memo due to AUP Violation Damages. The problem is I was never told what specifically I violated, it could have been one of many things potentially. I sold thousands of different items. PayPal and Chargeback dispute ratio was below 0.5%. The only reason I was limited in the 1st place was because I tried to get my account upgraded (enable features), they did a full review on my account and decided to limit me.

I tried to appeal it and they said:

Thank you for contacting PayPal regarding the limitation on your account.

Please be advised that due to the violation of PayPal's Acceptable Use Policy, your account will remain permanently limited.

The PayPal User Agreement states that PayPal, at its sole discretion, reserves the right to limit an account for any violation of the User Agreement, including the Acceptable Use Policy.

The complete Acceptable Use Policy can be found by clicking on Legal at the bottom of any page of our website, and then selecting PayPal Acceptable Use Policy.

Per the User Agreement, when PayPal permanently limits an account due to an Acceptable Use Policy violation, we may hold your funds for up to 180 days. For full details around the release of funds process, please refer to our original email outlining details of the limitation.

If you have not yet done so, please remove any references to PayPal from your website/auction site.

Sincerely,
PayPal, Brand Risk Management
PayPal
--------------------------------------------------
Copyright © 1999-2018 PayPal. All rights reserved.

They specifically did say my funds would be released within 180 days. Instead they turned around and transferred them to their own PayPal.

Now hopefully you can see how badly PayPal screwed me over. They legitimately stole a large sum of money (won't disclose exact amount but it's well over $10k+), won't tell me why I was limited, won't tell me why my appeal was denied, haven't disclosed yet to me why the funds were taken other than a small memo message. If I call them (which I won't anymore), they won't tell me anything over the phone (excuse is always that department doesn't take phone calls).

Now it seems more and more cases are piling up.

[Wesker]

Originally Posted by fiercygoat

Same here. $3800 vanished yesterday

Paypal is turning into thieves with no morals.

Sent you a DM.

[Wesker]

Originally Posted by ALOHA

Im waiting for your result brothers.

Did you have the same issue?

[Wesker]

Here is another case

https://www.paypal-community.com/t5/...on/m-p/1968997

[Wesker]

Originally Posted by SaiJin

Hmmmm this is sounding more like amazon when they suspend you for a big violation and just take the money.

If you have a brick and mortar store and all the documents, there must be a way to solve this. One of them could be a class action.

Can we sticky this thread?

This is a pretty serious issue people need to be aware of. The cases are piling up and since aspkin is about stealth accounts, people on here will be victims certainly if PayPal is now implementing damage fines.

[Wesker]

Originally Posted by be9de20

This just happened to me today. 180 days are up on 12-15-19 and Paypal just drained the account of over $5,000 this morning with the same memo on the transfer "PayPal's damages caused by Acceptable Use Policy violation" We sell supplements on line and used Paypal Here in our legit store front to accept payments in store and online. Our Paypal account is Real, all legit addresses, email, bank accounts for over 15 years. Never was told how we violated there acceptable use policy after years of operating with them. How can they just drain our account!!!!!!!!!! What has everyone else decided to do?

I sent you a direct message.

Sorry for your loss. I lost much more than that. Right now I'm not entirely sure how to handle this myself. Some have suggested we write to PayPal which is a good idea but in order to avoid making mistakes, will need to consult with an attorney and get feedback from everyone else on how to proceed.

I'm on standby myself unsure exactly how to approach this but plan to address this in 2020.

[Wesker]

Originally Posted by SaiJin

Hmmmm this is sounding more like amazon when they suspend you for a big violation and just take the money.

If you have a brick and mortar store and all the documents, there must be a way to solve this. One of them could be a class action.

I am aware of this as well.

Amazon will freeze your funds if you're a seller. It requires pre arbitration usually to settle this. This didn't happen to me but if you google it there are thousands of cases. There are lawfirms specifically who focus on Amazon cases.

With PayPal, this is unheard of. You're right that they maybe changing their policies and now fining people much like Amazon does.

[james_112233]

Has anybody had this done to them in any other country other than the US ? Looks like a US Paypal problem.

I'm actually shocked by how many people are having tens of thousands stolen by paypal ?

Regardless of what they think we have violated. The CUSTOMER IS HAPPY. So how can they just take ALL of our money like that without even telling us exactly what we have done wrong. We are not robbing anyone. They are making a fee of us. Our customer received what they ordered. Everybody is happy ?

Looks like ebay scrapping them for adyen is hitting their wallet so they need to make their money some other way.

[Wesker]

Originally Posted by tinsoldier

The advice to those who fear they might fall foul of this rule is simple....DON'T LEAVE MONEY IN A STEALTH PAYPAL ACCOUNT.

How many time does it need to be said FFS.

Mine wasn't a stealth account. Fully under my name and information. Bank Account was under my name. Vietnam guy wasn't a stealth account either. The people on the paypal community page doesn't appear to be stealth accounts either.

I don't think it has anything to do with stealth accounts. PayPal is just fining accounts with large sums of money in it. Cases are being reported daily now.

[Wesker]

Originally Posted by james_112233

Has anybody had this done to them in any other country other than the US ? Looks like a US Paypal problem.

I'm actually shocked by how many people are having tens of thousands stolen by paypal ?

Regardless of what they think we have violated. The CUSTOMER IS HAPPY. So how can they just take ALL of our money like that without even telling us exactly what we have done wrong. We are not robbing anyone. They are making a fee of us. Our customer received what they ordered. Everybody is happy ?

Looks like ebay scrapping them for adyen is hitting their wallet so they need to make their money some other way.

Don't think it's the country. Vietnam individual said he lost $31k.

I have yet to see the common reason why it's happening other than every individual has more than $3.5k in their account.

[Wesker]

When was your guys fines? Mine was on Nov 26.

https://www.paypal-community.com/t5/...on/m-p/1968997

This guy was Nov 26.

Wonder if the connection is somebody did this all on Nov 26.

[Wesker]

Originally Posted by tinsoldier

DON'T LEAVE MONEY IN ANY PAYPAL ACCOUNT.

This is 100% correct but hard to withdrawal it when they limited it. On my end though, I agree I left too much in PayPal trusting the funds would be secure with them. I was wrong. Nobody should store money in PayPal. Get it out as soon as you can.

[fiercygoat]

Greedy *******s there at Paypal. They are destroying our holidays. For them, amounts in thousands of $$$ is loose change and they don't give a damn. For us, who worked so hard for it, these amounts that are confiscating lately mean a great deal and seeing them vanishing like that is disheartening. Can't wait for Paypal to get the boot by eBay once and for all.

[Wesker]

Originally Posted by fiercygoat

Greedy *******s there at Paypal. They are destroying our holidays. For them, amounts in thousands of $$$ is loose change and they don't give a damn. For us, who worked so hard for it, these amounts that are confiscating lately mean a great deal and seeing them vanishing like that is disheartening. Can't wait for Paypal to get the boot by eBay once and for all.

PayPal doesn't care. They are a growing company despite new competition.

[Wesker]

Originally Posted by fiercygoat

Greedy *******s there at Paypal. They are destroying our holidays. For them, amounts in thousands of $$$ is loose change and they don't give a damn. For us, who worked so hard for it, these amounts that are confiscating lately mean a great deal and seeing them vanishing like that is disheartening. Can't wait for Paypal to get the boot by eBay once and for all.

I sent you a DM as well.

If people would like, we can split the costs and hire a lawfirm to handle this. Wouldn't think it would cost too much. Maybe $3k-$6k total and if it goes to arbitration maybe another $2.5k? Would have to look to see if there are any attorneys who specialize in PayPal cases. I assume we would need to file in the State of California. If a dozen of us join in together, we can reduce the costs heavily.

Per PayPal Policy, we have to take them to arbitration to settle these issues.

[fiercygoat]

Absolutely. We got to stop this now before it gets out of hand and it becomes the new norm for 180 days paypal suspended accounts. If Paypal sees that nothing is done about it they will do it in a granter scale. Now they're just testing the waters with some accounts but what could prevent them from doing it to almost all suspended accounts instead of releasing the funds?

[fiercygoat]

Originally Posted by Wesker

I sent you a DM as well.

If people would like, we can split the costs and hire a lawfirm to handle this. Wouldn't think it would cost too much. Maybe $3k-$6k total and if it goes to arbitration maybe another $2.5k? Would have to look to see if there are any attorneys who specialize in PayPal cases. I assume we would need to file in the State of California. If a dozen of us join in together, we can reduce the costs heavily.

Per PayPal Policy, we have to take them to arbitration to settle these issues.

pm your email. I can't respond to pm's or send any before i reach 25 posts

[Pandoras_box]

Originally Posted by tinsoldier

DON'T LEAVE MONEY IN A STEALTH PAYPAL ACCOUNT.

How many time does it need to be said FFS.

Good advice but you're going to have to keep saying it until hindsight and foresight are equally 20:20. I doubt 2020 will be that year though.

[Wesker]

Originally Posted by Pandoras_box

Good advice but you're going to have to keep saying it until hindsight and foresight are equally 20:20. I doubt 2020 will be that year though.

With all due respect here, in my certain case those funds were left in PayPal because we need to pay suppliers. Since our suppliers are international and we use mass pay, funds were left in PayPal because that's how we pay sellers.

My mistake was not withdrawing right away at the 180 day mark.