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Old 05-21-2011, 09:04 PM   #56 (permalink)
Join Date: Apr 2011
Location: Ohio
Posts: 626

Originally Posted by Rick View Post
I've been trying to tell you guys this for months. lol

I have a Paypal account currently frozen since December 17th for 180 days (6 months) with $10k in it. It's locked until June 17th.

I was sending a lot of Gift payments to a lot of people & I was sending Gift payments for my thread on here:

They sent me an email saying there was suspicious activity & they needed my license, a bill to my confirmed address, phone bill to verify the number they had on file etc all to be faxed to them.

I figured no problem & sent them what they asked for.

They then emailed me back saying the fax wasn't clear. I went to Fedex/Kinkos & the fax was fine. So I did it again & they sent an email saying they needed a fax of my social security card & a credit card statement in my name to my confirmed address. I felt like that was way too much information to be sending to India. (And before you ask, this was not a scam, always updated IN Paypal & always verified by calling Paypal).

So finally when I told them I wasn't going to send them a copy of my SS# & credit card information, they told me they are locking my account for 180 days (6 months) & I'll have to wait until that time is up to withdraw my money or request a check.

After all this happened to me, I started doing my research & it seems Paypal shuts down a TON of accounts every day for any kind of reason.

I now never send any payments as gift or anything personal through the Paypal account that I still have running. If that account were to also be locked, my business would be devastated.

They are cracking down on money laundering and I guess with all of the gift payments being sent every which direction it's easy to launder money around.

I would advise to never keep any kind of substantial amount of money in the account because Paypal can lock it at any moment without a reason. Paypal is NOT a bank, they don't have the same rules as banks do. Paypal can & will lock your account for any reason they see fit. They have over 10k of mine locked up for 6 months invested in a money market account gaining THEM interest. Will I see any of that interest? NO.

I have read that at any given time Paypal has over $1 Billion dollars locked up collecting interest.
I had a friend in a very similar situation with Paypal although for just a little over $5000. They requested everything but the kitchen sink. He refused as you did and they locked his account and held his money as well.

Next day he calls an attorney, explains what happened. Said attorney sends a letter to paypal as well as listens in on the other line while my friend calls them. They give him the runaround and basically bs him to death however the conversation is recorded. Apparently what they said didn't comply with law A or B or whatever it was.

Final step was the attorney calling the fraud dept at Paypal, tossing some legal jargon at them related to seizing funds, playing the recorded message to them, and basically bulldogs his way into making them release the money under threat of legal action.

I suspect they realized that of all the fish they trap like this (seizing money), the probably figured he wasn't one to string along and save themselves the headache.

Best part was the attorney charged him nothing to do it because they froze his account some time back with $100 in it. Glady went after them for him.
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