Mailbag: Can Paypal keep both parties’ money in an illegal transaction?
This mailbag question comes from Brian who seems to have run-afoul of PayPal’s rules:
I participated in a paypal transaction that was a violation of the paypal user agreement (although perfectly legal). The other party states their account has been locked along with his balance “that paypal will now keep.” My account has no indication that a violation has occurred, nor that it is locked. Can paypal keep funds in a persons account even if they were a violation of it’s use policy? I could understand the 180 days thing, and closing an account, but keeping all the funds seems just wrong! Is there any way I can at least get my money back since the guy isn’t going to deliver the product I purchased?
Thanks
Brian
I have never heard of PayPal holding money indefinitely for violating their user-agreement. In every case that I have read about (and in my own experience), Paypal will hold the money of one or both parties for the dreaded 180 days, but not “keep” it. If you have sent your money to the seller and you know he is not or did not ship the goods, I would follow the standard dispute procedure in the PayPal resolution center to request a refund and let PayPal work it out. I can think of no reason why PayPal would not return your money to you. To be safe though, I would withdraw any money from your PayPal account before you bring any attention to it – just to be safe. I also recall that when my PayPal account was temporarily banned, and they were holding my funds, I could still log-in and issue refunds to buyers – so I think your seller may be confused.. or a liar..





