PayPal Account Funds - PayPal Loss Recovery - PayPal Performing Fraud (?)

[rosher99]

Over 5 years ago, PayPal account was permanently limited (suspicious activity detected by the system). (Nothing actual in reality)

It entered the 180 Days waiting period, for releasing funds for withdrawal. (Which passed)

-

This month I logged in for the first time since, and discovered no funds balance.

Tracked it down to a single Transaction, titled: 'PayPal Loss Recovery', that occurred in the middle of last year.

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Paypal agents; spoke to 10 different agents, all say they can take funds for 'PayPal Loss Recovery' as per User Agreement. That's all they say. They cannot provide the actual reason that caused the 'recovery' to take place.

They just say, that is Final. Nothing else can be done, "Good Bye".

-

So on a permanently limited account, for over 5 years, after 5+ years, all the funds have disappeared into PayPal, and without any details towards the 'actual' reason. [All transaction refunds/matters are dealt with within 180 of account limitation] -Surely there CANNOT be a true reason for this ? (Unrealistic due to the large time-frame)

Is this 'fraud' / 'theft' that PayPal is committing ?.

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Any one else have this experience. Did you pursue further?, if so how?

Any one know where to pursue this matter further (to have funds returned, for withdrawal).

?

[agent006140]

Paypal has a policy,when you violate its terms,cant recall the name,it will take your $$.
why is your account permanently restricted?
https://www.paypal.com/us/legalhub/p...ptableuse-full

[rosher99]

Originally Posted by agent006140

Paypal has a policy,when you violate its terms,cant recall the name,it will take your $$.
why is your account permanently restricted?
https://www.paypal.com/us/legalhub/p...ptableuse-full

Restriction: System detected suspicious activity (False Detection)

NOTE: Funds were taken ,after the 'all clear' period had passed. I.e. 5 years after it had elapsed! -I.e. The reason would be UNrelated to the account restriction reason.

[phaz0rz]

Why'd you wait so long?

[rosher99]

Originally Posted by phaz0rz

Why'd you wait so long?

Became busy (other things in life)

[rsot]

Originally Posted by rosher99

Became busy (other things in life)

Busy for 5 years hmm how much was the sum locked up?

[rosher99]

Originally Posted by rsot

Busy for 5 years hmm how much was the sum locked up?

£1500 (approx)

[SaiJin]

Unfortunately that's what companies like paypal, amz , etc do nowadays.

They can make up whatever reason they want and take your money, until you sue them

[rsot]

Originally Posted by rosher99

£1500 (approx)

Understood - well, you might need to go the legal route and have lawyer representation to get that money, which might cost you more in the end. Just a light assessment.

[KODE332]

standard by paypal, that how they make profit

[Automasters]

As much as I love to rip into gaypal, five years is a long time to leave the money dormant. I'm sure there is some clause in their agreements that allows them much latitude on what to do with the unclaimed funds...

[agent006140]

Paypal needs a reason to take your fund,often dead people whose family does not have her password cannot withdraw fund from her account unless they hire a lawyer.
The fund remains in her account forever

[phaz0rz]

Originally Posted by KODE332

standard by paypal, that how they make profit

lol, no it isn't.

[rsot]

Solid derailment going on hah

[PayPalStoleMyMoney]

What you’re describing is extremely common, and no, it is not normal or justified just because PayPal repeats “User Agreement”.
A few important clarifications that PayPal agents never explain:

1) “PayPal Loss Recovery” is not a refund, chargeback, or reversal
It is PayPal’s internal label for what they call AUP damages. That matters because:
It is not tied to any specific transaction.
It is not tied to any identified loss.
It is not tied to the 180-day hold logic.
In other words, it is not a mechanical consequence of your limitation. It is a discretionary deduction they apply later.

2) The 180-day period is being misused as a shield
The 180 days only exist to:
resolve chargebacks,
resolve disputes,
cover known, identifiable exposure.
If your account sat untouched for 5+ years, that alone strongly undermines any claim of “loss recovery”. Real losses do not materialize out of thin air half a decade later.
PayPal knows this. That’s why agents cannot tell you:
what loss occurred,
when it occurred,
how it was calculated,
or which transaction caused it.

3) This is not “fraud” in the criminal sense, but it is legally vulnerable
Calling it “theft” or “fraud” won’t help you. The stronger framing is this:
unilateral seizure of funds,
no proof of damages,
no itemized calculation,
no causal link to your activity,
applied years after any exposure window closed.
That combination is precisely why these deductions fail when challenged properly.

4) Agents saying “final” means nothing
Frontline and even “supervisors” have zero authority over AUP deductions. Their job is to repeat the clause and close the ticket.
The only channels that matter are:

formal Notice of Dispute / arbitration (US),
ombudsman or regulator complaints (EU, UK, AU),
FIDReC / regulator route (Singapore-linked accounts),
consumer protection authorities where applicable.

5) Yes, many people have had this happen years later
You’re not an outlier. What’s unusual is that you logged in and caught it. Most people never do.
Several users have recovered funds years after limitation by forcing PayPal to answer one simple question they avoid:
“What specific loss did you suffer, and how was this amount calculated?”
They cannot answer it.

6) What you should do next
Do not argue with agents.
Do not accept “User Agreement” as an explanation.
File a formal dispute through the proper channel for your jurisdiction.
Force PayPal into a written position where they must either:
prove actual damages, or
admit it was a flat penalty.
That is where their case collapses.
If you want a structured breakdown of how this works and which channel applies to you, there are guides that walk through this step by step. But the key thing to understand is this:
What happened to you is not a system glitch, and it’s not untouchable just because time passed.
It’s a legally weak deduction that survives only as long as nobody challenges it properly.

[agent006140]

Over 5 years ago, PayPal account was permanently limited (suspicious activity detected by the system). (Nothing actual in reality)
--------------
Go back to the beginning,what suspicious activity is Paypal referring to?
What is the 1500 GBP for?
Did you sell something?and what did you sell?
Paypal AUP violation is a long list,Ponzi scheme,illegal substance ?

[rsot]

OP hasn't been active in awhile - thread is over. Nice GPT post PayPalStoleMyMoney...feels like it

[rosher99]

Originally Posted by rsot

OP hasn't been active in awhile - thread is over. Nice GPT post PayPalStoleMyMoney...feels like it

I am still here.... Waiting.... and reading replies.... (Only 1 reply (recent long one) was constructive action).

[rsot]

Originally Posted by rosher99

I am still here.... Waiting.... and reading replies.... (Only 1 reply (recent long one) was constructive action).

All good - what have you been trying since the start of the thread?

[agent006140]

first she has not told us what triggers her restriction,she received 1500 GBP?,what is it for>
There are cases the person gets his money back,what is that 1500 for ?if you have sold something,did you ship,is there proof you have shipped.
Paypal has established a list of goods and services which should not be using Paypal

[rsot]

Agreed, a lot of details are lacking but all up to the OP to open up

[SaiJin]

Originally Posted by rosher99

I am still here.... Waiting.... and reading replies.... (Only 1 reply (recent long one) was constructive action).

You can also search more of the forum and make more threads.

Not everyone is gonna have the answer, but the more you ask the more people are going to see your questions.