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PayPal Froze My Funds

By Jennifer Drysdale

I am writing regarding a complaint with my paypal account which I used to receive payment from an Ebay auction. I had $929 in my paypal online banking account frozen on 11/15/04. The reason they have given me for this is that they are investigating a transaction where a buyer from eBay is unhappy with his purchase from me ON 10/25/04. Please allow me to give you a quick history of this complaint; this buyer bought 49 Zuni fetishes from me on eBay. He then paid me the amount of $929 for the 49 fetishes. After receiving the fetishes he claimed that one of the fetishes was not ‘authentic’. However he then checked this and found that it was in fact authentic. In the meantime he sold appx 40 of the items he bought from me for a profit. He has now claimed that 1 of the 49 items was damaged ‘cracked’. Paypal and its sister company eBay are perfectly aware that this person has sold the items he bought from me (he has already completed the transactions and received feedback).

Once he made the complaint, paypal froze the entire $929 of his original purchase (remember he is complaining about 1 of 49 items he bought from me) I have contacted paypal on at least 10 occasions since this happened, they have not even had the courtesy to tell me what stage the investigation is at. They also initially sent me an email saying that the process normally takes 7-14 days. They told me on the phone today that it will take appx 6 week, and that they can extend this as they see fit. So basically these funds are frozen indefinitely.

I would greatly appreciate any help you can give me in this matter to expedite the release of these funds in my account because paypal have been totally uncooperative.

I called paypal and spoke to Dustin in their customer resolution department on Thursday October 25th. I explained my situation to him and asked him about paypal policy. He explained that if paypal accepts this complaint on the buyer’s side, he will be asked to mail me back the items I sold him. Now considering this buyer has sold appx 40 of the 49 items, I asked him what proof the buyer would need to show paypal that he had sent me the items back. I was informed that paypal just wanted a tracking # from USPS. So actually this guy can send me an empty package and paypal will refund him $1000 from me. When I asked if this is the situation could I request that the buyer send the items to paypal so that they might verify that he is not sending an empty package, Dustin informed me that it would take too much of Paypal’s time to do this.

When I heard the policy my first question was what can I do to stop this guy and was told, “It is not possible for paypal to investigate whether or not he actually sends you back your items”. Amazingly when I asked to speak with a manager Dustin also told me specifically that “It is Paypal policy that managers don’t speak directly to customers”. I eventually spoke to someone in customer service who said a manager would call me back. Of course I never received the call from a manager.

This to me seems amazing that Paypal can simply ask that he provide a tracking # for a packaged without verifying that he sends the items. I would think this was a basic necessity before they take $1000 from me. I fully intend to take legal action if paypal decides to keep the funds that have already frozen in my account, but would appreciate any advice that you can give me regarding what my best options are in this matter.

Posted: April 20, 2012 at 5:15 am


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