How I Convinced PayPal To Release My Funds
Posted on April 20, 2008
Filed Under PayPal
This is a follow up to my post “Banned by PayPal“
When I was informed that my PayPal account was “permanently limited” (aka: banned) and that PayPal would be holding my balance of $5,149 for six-months, I thought there was not much I could do. I appealed the decision to limit (ban) my account and PayPal denied it. Since I did not need the balance of $5,149 that PayPal was going to hold for 6 months I figured I would just wait it out (note that I say did not NEED it.. I want it, but I did not NEED it).
But after seeing some of the comments that readers posted on my original “my PayPal account was limited” post I started to feel a bit victimized and angry, and a bit like PayPal was pushing me around and doing whatever they wanted with my balance. I decided that instead of feeling like I was going to just lay down and let PayPal rape me that I would fight back one last time.
So based on a comment posted by Lucas explaining how he got his funds released after PayPal limited his account, I sat down and wrote this little email:
RE: Case PP-xxx-yyy-zzz
I am respectfully requesting that the hold on my funds/account be lifted. I
am not necessarily requesting that my account be re-opened or allowed to
continue to use the PayPal service, as I have already taken my business to
your largest competitor and am no longer in need of PayPal’s services.I have previously requested a review/appeal of my case which was denied.
Although I still disagree with the decision to deny my appeal I will abide by it - however because I feel that holding my funds for 180 days for a non-fraudulent violation of PayPal’s Acceptable Use Policy is excessive, and perhaps a punitive abuse of power, I will be filing complaints with the following agencies on Wednesday morning, April 23, 2008 if I am not satisfied with PayPal’s response to this request to release my funds:(agencies in the states that I reside or have a business presence in)
The California Office of the Attorney General
http://ag.ca.gov/contact/complaint_form.php?cmplt=CLThe Washington State Office of the Attorney General
https://fortress.wa.gov/atg/formhandler/ago/ComplaintForm.aspxThe Florida Office of the Attorney General
http://myfloridalegal.com/contact.nsf/contactThe Arizona Office of the Attorney General
http://myfloridalegal.com/contact.nsf/contactAdditionally:
The United States Federal Reserve
http://www.federalreserveconsumerhelp.gov/complaintinfo.cfm?info=1
(I understand that PayPal does not operate as a “bank” which is precisely
why they may be interested in such complaints)The Better Business Bureau:
https://odr.bbb.org/odrweb/public/complaintlink.aspxAll complaints will be filed “online” Wednesday morning April 23, 2008 and
written copies will also be sent via certified postal mail.I understand PayPal’s need for holding funds for credit card chargeback purposes, however a review of my account history for the last year will reveal a very low chargeback rate as well as a very high customer-satisfaction rate. I feel that any reasonable person would conclude that holding my entire balance for 180 days is excessive and my be viewed by some as punitive or as already stated, an unnecessary abuse of power and perhaps even contrary to the laws of some states. That being said I have no problem with, and agree to leaving a balance of $500 for credit card chargeback purposes for the duration of the 180 days. I feel that this is a fair resolution while still leaving PayPal with the means to charge back any future credit card disputes to my account.
Please be aware that replying with the standard “this is part of the terms of service that you agreed to” will not satisfy my request, or deter me from filing my complaints with the agencies listed above on the morning of Wednesday April 23. It will be up to those agencies to determine if PayPal is operating within the law, abusing power, etc. I am simply seeking a
resolution that is fair and in the best interest of both parties.Thank you for your time again in looking into this matter.
Randy Brown
Case PP-xxx-yyy-zzz
I addressed the email to the following addresses: account-review@paypal.com; aup@paypal.com; complaint-response@paypal.com; resolutions@paypal.com; escalations@paypal.com; complaints@paypal.com; RDutta@paypal.com; sthompson@paypal.com; crme@paypal.com; press@paypal.com; exec.relations@ebay.com
Rdutta@paypal.com and Sthompson@paypal.com were as best as I could tell the guys in charge at PayPal, press@paypal.com and exec.relations@paypal.com appear to be their press people, and the others are all of the “escalation” email address that I could find - most of which I got from PayPalSucks.com.
I did my best to word the email as politely as I could and basically told them that they had 48 hours to respond or I would start complaining to whoever would listen. I spell-checked it and hit the SEND button at 1:48PM California time on Sunday afternoon.
Approx 5 hours later, at just a little after 7PM California time on Sunday night my phone rang. CallerID said it was from the 402 area code and listed it simply as “Nebraska”.. Hmm.. Who could be calling me from Nebraska this late on a Sunday evening? Could it be Shoemoney calling or might it be someone from PayPal headquarters working late??
Sure enough, when I picked up the phone a very nice lady at the other end explained that she was calling from PayPal regarding the email I had sent earlier in the day. She had reviewed my account, agreed that my chargebacks had been virtually zero over the previous year, and that although PayPal would not be re-opening (or un-banning) my account, they would be transferring $5,000 of my $5,149 balance into my bank account. They would hold the remaining $149 for the balance of the 180 days at which time it would automatically be transferred into my bank account. Heck, that’s better than I had asked for in my email!
So - although having my PayPal account banned has been a huge inconvenience, being forced to switch to Google Checkout is still working to my advantage (making me more money), and now that PayPal will be releasing all but $149 of my funds, I can say that I’m pretty happy.
Now, if you’ve been banned by Paypal, before you go copying and pasting my email to try and get your funds released remember that I have had my PayPal account for a few years with virtually zero complaints and very few disputes or chargebacks. If you have been involved in fraudulent activity, been ripping people off, selling body parts, etc, you probably wont make out as well as I have (nor should you). However if your account has been in good standing and you have a low rate of disputes you may be able to get your funds released before the 180 day period that PayPal imposes by letting them know that you just wont stand for it and that you will complain to anyone that will listen.
W00t!
Comments
23 Responses to “How I Convinced PayPal To Release My Funds”
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I had a similar problem with Paypal a couple of years ago. Mine was two thousand dollars, but I didn’t bother complaining beyond the original appeal,as they were paying a nice money market interest rate on the money.
The arrogant way they handled the situation still irks me.
Good for you. My account is limited too. And I am having more than $1000 locked with it. I have given up my fight and am waiting for the 180 days period to end. LOL
A most excellent tactic and story, Randy. Politely worded, but clear that there were consequences to their actions. Should be a lesson to anyone attempting to “right a wrong” by an organization.
Wow! Good on you buddy, it’s all about people power here. I think I better book mark this page just incase this ever happens to me.
Now I need to go find the reason why your account was limited lol
Congrats! Thats the best response I’ve seen from paypal ever. I have an account that was locked several years ago and they said that it was permanently locked and could never be reopened. It had a 0 dollar balance.
I’d still be inclined to file a complaint with at least the BBB.
I am glad to hear you got your money back, good for you
Hi Randy, nice to know things work out. And I am glad you are going Great too.
Just to let you know, I was one of the first person who had bought your ebook at DP
Pushkar
I also recovered my PayPal by emailing them and uploading my documents, It took a week but it was good, Thanks Randy
I just recently had my account limited and the email stating it will no longer be opened. I have just over $3,000 in the account so I am giving your email a shot. Like yourself I have been with them for a while and very little dispute issues.
Does anyone know why they do this? They never even did a thorough investigation. (no phone calls etc…) Just scummy of them.
Wow, here is an update.
One hour after sending this email, paypal contacted me and and tried to understand how the business worked. After clarify and talking about several other issues which I was able to explain the lady I spoke to (very nice) said she would speak with an account specialist and call me back. 15 minutes later, I received an email stating my account has been reinstated!
So just wanted to say a huge thanks!
Mike said:
that is awesome! I’m glad I was able to help.
See everybody?! Blogging CAN help change people’s lives!!
I just wanted to say thanks…hopefully it will work. i emailed them earlier and will let you know the response after i know! =)
Hey Ashley i’m glad i could help. Come back and post an update if you hear anything back from them.
Good luck!
Well, they did not reply as soon as I hoped, but IT WORKED! (they called this morning) I figured it would because it was VERY well written. I omitted some info & added a more personal note about my situation. Although they weren’t holding nearly as much money as they were with you (only about $300…lol), I have 2 toddlers to take care of and it was (MY) MONEY that I earned. =)
I want to thank you so much for writing this!! I really appreciate it! I know you have helped a lot of people and will help so many more. Ebay & Paypal are TERRIBLE!
The only thing now is that because of them taking the money out of my bank account UNJUSTLY, my account is overdrawn, so I still lose. I have to go to the bank and file a dispute and hope it works. Do you have any more brilliant ideas?
Heres what happened(in short): My grandma passed away, I had to DRIVE out of state w/ 2 toddlers to make arrangements. I was in a bit of shock & did not mail items before I left, however, I did as soon as I made it back. AFTER proof of shipment AND delivery, paypal took $175 out of my bank account. So now I am overdrawn. Instead of releasing the money back into my bank, they put it in my paypal. It takes 3-4 days to post to my bank. ?????
thanks
Ashley
I need your help with something, Randy. I have been scammed by esuccess2u.com and would like to know how I could go about getting my money back. =((
Ashley Poole said:
Oh no! I’m sorry to hear that! unfortunately, i’ve never heard of them, and would not know where to begin.. I guess if you gave them any money, file a complaint/chargeback with whoever you used to pay them (credit card company/paypal, etc) ..
Let us know how it goes.
Just wanted you to know same story…Paypal holding $4000 for over 2 months….it was awful as I had bills to pay and etc….with no $$$$! I took your letter and tweaked it to my situation and within 8 hours all the money was released!!!!
Thanks again and you are awesome!!!!
Hello Randy,
They just held my money and limited my acct, I have sent all the product and delivery conformation was received and every person left positive feedback. They then asked me to provide the receipt from the supplier i did that and they called the supplier which was my brothers wholesale business. They asked if he was related and he told them yes. They then told me that it could be fraud and I explained that he sells to everyone. This is not fraud and I am at a stand still I just wrote the an email and followed your procedure. What is the best thing that I can do to prove to them this is not fraud just because my brother owns the wholesaler it does not give them the right to do that. I have given them all my information and followed all of there verification procedures and am still lost.. Please Help
Faye Awana said:
Wow.. isnt Paypal wonderful? If you have not broken any rules, then you have to keep on them! Keep sending the emails (to EVERYONE), quote their own rules, point out your past customer satisfaction rate, and tell them you are going to complain to the applicable agencies (like i did) if they don’t respond - and dont forget to stay polite and professional.
Keep in mind though, that if you have broken any rules, etc, you may not get the results you expect.
Good luck - lord knows you will need it!
Paypal locked my account nearly one month ago now, balance just over $5000.
I have been a customer for 8 years and 6 months, over 1000 transactions and only one complaint that I can recall against me.
I don’t know what is going on, just automated email replies from them.
They suck!
Hello everyone,
I see that I am not the only one who have a similar issue with Paypal. I just started to sell on Ebay 2 months ago, and using paypal for my transactions. I had almost $8,000 revenue within 1 month. My last transaction was for $2400, the payment was an instant payment in my paypal account. I never leave any money in my paypal account and wanted to transfer the $2,400 out of my paypal account to my bank account, before shipping the item. Right after i have initiated transferring $2,400 out of my paypal account, I received a phone call from 402 area code. A nasty/mean paypal representative was on the phone and asking me where I get the supply from? She told me that she needs to see the invoices of my supplies…etc.
With that phone call, I understood that transferring money out of my Paypal account was not a right move on my part, before shipping the item. But it was too late to even think about it. Now, Paypal were asking me private questions which I would not like to give to nobody. I told the Paypal’s nasty representative, that it is not her business to know where I get my supplies from. I always send the items, and never cheated nobody, and all of my customers are very happy with my products and services.
She told me that she will be sending me an email, and hung the phone on my face. Right after that, I received an email with a notice of “Restriction on my paypal account”. I had $2,950 in my account. I got so upset, and went ahead and gave full refund to the customer who sent me $2,400, because I had the item in hand(did not ship the item). Account balance came to $550. I gave more refunds to one of my other customers, who paid me $530 via Google Checkout, and right now, there is only $19 in my account. I don’t care about that money, and Paypal can stick that $19 right into their A** HOLE.
Without any other payment method set up in the past, I had to take all of my listings down on E-Bay, because I can’t receive money from my Paypal acocunt.
Currently, I am in the process of opening my merchant account through my bank. I will never work with paypal in the future. I did not provide them any of the information that they asked.
However, I am wondering if they can charge any money into my bank account that is linked to my Paypal account.(Note: I do not owe any money or item to nobody)
Also, I have a good user name on E-bay, I am wondering if Paypal can communicate with E-Bay to ban my E-bay account, because I did not provide information that Paypal required to do investigation.
Do you think, still I should go ahead and send that email to see if they lift the restriction on my Paypal account?
Thanks
I am going through problems with PayPal right now for merchandise I didn’t receive. I am amazed how unprofessional and non-customer-oriented they are! I guarantee you, I’ve learned a tough lesson and want to warn anyone reading this: DO NOT USE PAYPAL!