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Paypal account closed due to Bad Credit!?!
 

My paypal account just got closed today due to bad credit? WTF? I have over 10K in there. I have a 10K+ a month business and paypal is the only form of payment I accept. Because of this, my business has grinded to a halt!!!!!! Any advice or suggestions would be greatly appreciated! Thanks.

Notification of Limited Account Access RXI083‏

Hello XXXX,

We regret to advise you that PayPal has determined to close your account.
The following notice explains the reason for closure and the process for
disbursing any remaining balance.

As part of our account review, a consumer credit report was obtained from
the credit reporting agency identified below. The results of the report
contributed to the decision for account closure. Equifax did not make this
decision and is unable to provide you with specific reasons why the
decision was made. However, you have the following rights under state and
federal laws:

-The right to obtain a free copy of your Equifax consumer report if
you make such a request to Equifax within 60 days of your receipt of this
notice and

-The right to dispute the completeness or accuracy of any information
contained in such report by notifying Equifax directly of your dispute

You may contact Equifax by telephone using their 1-800-685-1111 phone
number and selecting the 'denied credit' option. Then follow the
instructions that are given.

If you prefer to use a mailed request, send the following information to
Equifax: first name, middle name, last name, spouse's name (if applicable),
home address, home address for the last five years, date of birth, social
security number (required), and copy of declination notice (this form).

Mail this information to:

Equifax
P.O. Box 740241
Atlanta GA, 30374-0241

Disbursement of your account balance can be handled in one of two ways:

Option 1. Your remaining account balance can be used to refund the buyers.
If you would like to pursue this option, please reply to this email with a
list of buyers you would like to refund. Include the email address, date,
and amount of the transaction. If you need to refund in bulk, please
provide a date range in which you would like all transactions refunded. We
cannot issue partial refunds.

Option 2. Your remaining account balance will be held within your PayPal
Account for 180 days in order to minimize chargeback risks. Once the
180-day period is completed, a check will be sent to your home address.

In the event of a dispute, PayPal will seek to recover the funds from you
by debiting your PayPal balance and, if there are not sufficient funds in
your PayPal balance, PayPal reserves the right to collect your debt to
PayPal by any other legal means.

Sincerely,
PayPal Account Review Department

Please do not reply to this email. This mailbox is not monitored and you
will not receive a response. For assistance, log in to your PayPal account
and click the Help link in the top right corner of any PayPal page.

Wow, this is a first.

Thats terrible

No. It is not a first. Second user here to mention this. I have heard of two others canned by paypal.:fight:

Building a big business with paypal is bad news but making a bunch of small simple ones can be good news if you make it. In other words it's better to have 10 that bring in 1k a month then 1 that brings in 10k a month IMO.

Other then calling PayPal and trying to get this fixed, it's time to move on.

Start accepting payments using a merchant account, or other payment processors. Try Google Checkout if your business is legit.. they're not bad. CCNow is another option.

If you want a sound way to always receiving money get a real merchant account, Authorize.Net.

Good luck,

411guru,

Everyone is right on the money, Paypal did the same to me recently and destroyed my business.

They did not say credit was the reason, but I know it was. In a eBay verification, eBay asked me questions that only someone with my credit report would know, and from 15 years ago.

Then , Bam ! Paypal killed me 2 days later after lifting a limitation from the week earlier on my legit account. I had a Bankruptcy.

But the senior people are right, in this forum. Do as they do, and advise and F-Paypal. Move on !

Paypal will find, and use any excuse to screw you, and push you onto the Psychotic-PayPal Merry Go Round.

Birti

exact email to me as well, I lost entire business due to them somehow obtaining credit report on me. Stealth is working out fine so far, although I am taking baby steps to get back where I was and spreading it over several accounts now.

This is completely sick.

Thanks for the advice Aspkin. I'm looking into Authorize.net. However, how does one get started with them? Do I need to open a merchant account at a bank first for credit card deposits?

No, I went with Merchant Plus for my authorize.net account. There are dozens of merchant account providers you can go with. You set everything up with them, read 3.0 for details on this. It took me two days to get my account but it was worth it.

Nope, not a first..this JUST happened to me a few days ago! Firstly, if you any of you see my previous posts, eBay has put me through HELL. My account took an extra 5 days to be reactivated (eBay) and I did a lot of research before using it again. I was paranoid.

So I go about my business buying and selling. BAM...Paypal limits my account and THANK GOD I have heard of PP issues before (although I never had them myself) . I didn't have but $12 in there. When I called up, I told them I have been with them for YEARS and was recently told my account was in superior standing. They said that the decision is final. I asked if it has to do with credit rating. ..and YES it does. The rep. blatantly said that.

I asked for help..everything. He refused and said Paypal doesn't want to do business with me because they don't feel like taking the risk. So I said" Let me get this straight, my account was closed because of unusual activity, it's BLATANTLY the holiday season, and you cannot and will not do anything to help me?" He said, "yes, it is a final decision".

I told them I would just use google checkout and cannot believe how much they messed up my tiny business....and NO surprise that in the SAME week..eBay sends me a LIMIT asking for ID, etc. YOU HAVE GOT TO BE KIDDING ME! You can't do ANYTHING on eBay for more than 2 weeks at a time. I don't trust them at ALL and wish there was a way around sending in my info. I am thinking of giving up on them...unfortunately they have me because I value my account. I have an EXTREMELY large amount of feedback and a 100%. Yet they need to limit me???

You guys..eBay owns Paypal I believe...I just cannot how much misery these two websites have brought into my life. I cannot even begin to tell you how much stress, resentment, and hate they have created for me...and no one will understand until they are actually a victim themselves. Paypal has the same attitude as eBay. They treat their customers like dirt and are too "big" and too "good" to give two squats about customer service.

I cannot believe they are legally allowed to hold money in there either. I also tried to delete my bank account...it won't allow me to. This really seems corrupt. Closing my account...but holding me by the neck with my bank account?

I also signed up with merchantexpress.com about a week ago, NO MORE Payments going through payponzi... Takes about the same 2-3 days to get my ## deposited INTO my account.

I didnt use authorize.net as a gateway though, I bought a TRANZ 380 CC Terminal (used $40) and I dont have to pay the $14.99/mo for a gateway ! :) and I use the Tranz 380 terminal on my vonage line :)

Good thing is ALMOST the same as paypal for a small business...
$9.95/month and 2.27% ! thats ALL !!!
and NO STRESS or HEADACHES with the SCUM at paypal ! :)

I would close your bank account and open a new one...this seems aweful. I didn't know they could do this!

The MORE I hear about paypal and ebay the more I realize that THEY are the reason that many of us are ruined financially and have bad credit reports that they NOW use against us. It's the reason that they are so adamant about getting SS numbers to USE AGAINST US. With the economy in the US and the crisis that our gov't realizes has ensued, HOW DARE THEY (paypal) decide this is the time to put the screws on people of which MANY are on Ebay/Paypal NOT to scam or sell VERO but to earn a living to pay the bills due to the economic crisis. Paypal/Ebay has ruined MANY lives...and will continue until enough of US get together and not only start a class action suit WE FOLLOW THROUGH ON but get the gov't involved into looking into their practices. The reason that they can do this is because who is going to go against them and stand a chance of winning? That is why they hire nasty clerks with a brownshirt mentality to talk to us on the phones.

We had ENRON, we had Bernie Madoff and we now have PAYPAL and Ebay. Enron and Bernie Madoff were "untouchable" and were brought down by one scheme too many...maybe we can FIGHT BACK and innundate them with accounts they can't keep up with.

I just KNEW there was a reason for SS# insistence....GREED, AVARICE, consumer choke holds and plain old being BULLIES.

I wonder how LEGAL it is to take money and then suspend you for 180 days AFTER taking your money when not requesting a credit report PRIOR to accepting the money.

:::whew:::

Getting off soapbox.

They use the credit card rule. Credit card companies have up to 6 months 180 days for chargeback disputes. Must be some loop hole that PayPal think their accounts are credit cards I dunno.

Seriously..I agree onceuponatime. I hate how Paypal and eBay dang near want your DNA sample. I feel like I'm a slave to Hitler when I use their two websites. They are absolutely awful. They claim that everything they do is to protect you..but it's really just the opposite. I just pray that an alternative eBay site like Bonanzle.com or eCrater.com --anything--takes off soon! However, I know that realistically it could take them a year or more to reach reasonable levels of traffic.

I use/used my eBay to make me about $1300 a month. This is literally enough for rent, a bus ticket, and some food..while I go to college full-time to study nursing. I have made my pleas with eBay and Paypal and explained that I am a nursing student and that I find it discouraging that they are nearly leaving me homeless. They could care less...and that's really no shock.

I do have 3 more bank accounts to use. Two are in different states..and one is in the same state. They are all 3 legit bank accounts with a checking and savings..and in good standing..but I wonder how much that would really help if they have me by my social security number as an apparent "loser" since my credit sucks. Unfortunately, yes my credit is kind of crummy because it was really hard to support myself and go to college full-time..so I lost a lot of stuff.

Has anyone signed up again for Paypal with a new bank account of theirs? Not a special one..but just a reg. bank account. All three of my bank accounts are pretty small branches.

Has anyone signed up again for Paypal with a new bank account of theirs? Not a special one..but just a reg. bank account. All three of my bank accounts are pretty small branches.

Your bank accounts should be for NEW STEALTH names/accounts. Neither paypal nor ebay can see the information on your bank account. HOWEVER....everyone PLEASE TAKE NOTE....if you log into any of the accounts online.....paypal/ebay can and WILL tie in the IP numbers and link the accounts via the BANK reporting the IP under the loopholes in the Patriot act. I no longer log into any bank accounts on line.

Oh my gosh! If I have logged in to my bank on the same IP am I then linked? AGHHHH I thought I did everything right! OH NOOOOOOO

Also, i was wondering if you didn't give your social out (stealth accounts), if they could do this close your paypal thing because of credit...they would need your social to do that, right?

I gotta look up what a stealth bank account is

:eek:
Are you f'in kidding me?
Even if this IS true, how would that work from a "computer jargon" (technical) standpoint.
Why on earth would any communication between eBay servers and your Bank Servers involve your home IP address?
The only way I can see the two being linked is if your bank is part of a beacon network.

Perhaps aspkin can come along and shed some light on this.
We need to find out if what onceuponatime is saying is true because if it is people need to know how to "plug ALL of the holes in the ship" or else it will just go down again.

And where did you get this information from? I have 3 bank accounts at 3 different banks.

methinks you be a tad bit paranoid.

Yeah, I totally agree. I really do not see how it would be possible at all for eBay, PayPal, or anyone else for that matter, to get the IP address that you logged into your online banking with, from your bank, in any fashion, without a warrant.

First of all, think about that statement....What information, exactly, would the bank give to PayPal or eBay? It's not like they have an inquiry from PayPal that they are replying to. So what would they do, just blindly send PayPal the IP logs for all of their customers? Remember, PayPal didn't request anything, so the bank would have NO IDEA what to send them!

Secondly, what if the banks did send all of the IP logs, showing IP in use, user name, password, and bank account #...What would PayPal even do with that? They would have no way to link it back to your PayPal or eBay accounts. MAYBE they would attempt to do it just by IP matching alone, but that would result in so many false positives that it's not even funny...

"Hey, Joe, this IP address has accessed 1000 bank accounts and 500 PayPal accounts, let's shut them all down!"

"Oh, that was the IP address from one of the computers at the New York Public library? Sorry about that."

Sorry, that just wouldn't work. Lastly, let's also not forget that what is being said here is illegal - the bank is not giving anyone your personal information without a warrant. Remember, these are banks, not PayPal, so there are laws regarding what they can and cannot do.

It's fine to be paranoid, but let's not go around causing a panic for no reason.

Update: My credit has improved since I started this thread. I called paypal and they reviewed my credit. Now my account is reinstated. FWIW, I never started a stealth account, so I'm using my real account now.