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PayPal Unauthorized Funds

By Sherri

paypal reverses 1785.00 and allows the buyer to keep the items ?

Hello and Thank you for giving me an opportunity to tell my story,and hopefully get some much needed advice. I opened a paypal account almost 3 years ago, One morning I woke up to a notice that my Paypal account has been limited due to I may have received unauthorized funds. When I signed into my account I had a negetive balance of -$1785.00 I went and viewed the history log and found that they have placed all funds sent to me by only one payor. I contacted Paypal immediately to find out how they have came to this decision. They told me that the sender of the funds may or (may not) have paid me with “ill gotten money” ? or was not the authorized holder of the account. (I’m thinking , well which one is it ?) I asked, What am I to do now, I sold these items over a period of time, and I was paid through a cash account, (no cc or bank transfer)as when the sender of this money asked me if  I take paypal, ? I said yes,  right ?

After all the Paypal Slogan is heard worldwide, ” Pay Anyone With Paypal who holds an email account” Invite your Friends and Family To Join Paypal, If they havien’t signed up we will invite them to Join Paypal for free !! Pay Your Rent, and Dinner Bill with Paypal , Feel Secure etc.. So I am feeling pretty sure about accepting Paypal for an off site transaction but asked a Vendor out at one of the Trade Shows I sell at and come to find out, They accept Paypal payments as long as it is a cash account, so I asked this person do you have the money in your paypal account ? He said yes, I will show you, so he opened up his lap top, confirmed funds , he was verified, so I said sure, as soon as the payment was sent, I walked over to the nearest ATM across the street while my helper packed up some items, I withdrew the funds , of 370.00 and Thanked him for his business. Period. as time went on this buyer and I had 7 total transactions totaling 1785.00 , all paid the same way meaning I actually got the cash in hand before packing up his items, come to find out he only bought from certain sellers and always paid either by cash or using his paypal account. Nobody was complaining, he was happy , I was happy, Done Deal ? Nope!

On April 4th the day I was aware of this paypal issue, I contacted this person by phone and asked if we could meet to discuss this issue with paypal,  He was at my home within an hours time, We called Paypal together on a speaker phone so that we could both hear what paypal had to say, Paypal said, the payor of the money has received some claims for non delivery of items, and it appears that we are in “Kahoots” together, meaning it looks like when he receives money in his account he sends it to my account ??? I said that is ridiculous, The sender of the money had been in an accident a few weeks prior to this at work, his arm was in a cast and he showed me a little bit of what happened, He was putting a roof on a house and in cutting some lumber , the saw kicked back and cut through his thumb, and ¾ up his arm, causing massive nerve damage , and after 2 surgeries he still had no feeling and may never have feeling in his hand again, as I am sure he was also dealing with some mental issues, and durring this time fell a bit behind in shipping,  However what the heck did his claims  have to do with me, ?

This is what Paypal said, In Order for the limit to be lifted ,(exact words) I suggest, You Kick Mr… in the butt to get his account straight !! I was floored, I think we both were, as all along this buyer is trying to tell them that the shipments in question have been shipped, or at the shippers getting ready to go,  anyhow I replied, Why is it my job to hold this guys hand in making sure he takes care of business, I am NOT his Partner, nor his Spouse, and I have nothing to do with his business, I just sold him some items, Ive already been paid for these items,? then Paypal told me , Well Ma’am no you havien’t I said, ” yes I have, I pulled the money out of the ATM before handing  him his items, he said, well do you have Tracking Numbers ? I said No, I just told you that we did business in person, why would I have tracking numbers ?  He said well then you have no Seller Protection, ? I replied, Who asked for it, we are both happy and besides both parties here are not complaining , and then it just went back and forth, finally I said , okay, as I did not have any money to speak of in my account, but it still was at a big Neg -1785.00 and any money that is to come in will simply be deducted to pay off the 1785.00 and of course minus the fees to even accept the money in the first place, so they will get to double dip again and receive the fees for using paypal when the money comes in again, ??

Forget it,  I got off the phone and said, Look, get your stuff together, Do you have any packages that need to be shipped, He said No, everything is either shipped or at the shippers waiting to be shipped, He called the UPS Store and they confirmed shipment for 5 complaints, Together we emailed paypal with this information , so I then backed it up with a phone call and again speaking with the customer support staffed at Paypal is like talking to an automated recording who keeps saying, Please Provide tracking numbers and bring your account balance back to a positve standing ???? I just cant express how frustrating this has been, everyday, for 3 months now I have been in touch with paypal one way or another, and each and everytime I speak to someone from Paypal, they simply cannot explain to me why, WHY ? I have been told so many different reasons , but never quite can give me straight facts, I get placed on hold, and Parked for so long that eventually without fail,  end up getting disconected. bottom line, if I was in “Kahoots” as they put it, then Charge me of Fraud , otherwise I respectfully ask you to reverse those funds and put my account back to a pos. balance, and I never received any response to that email. or that phone call .

As you might imagine I still am stumped as to why the sender of the money account is now my problem, and figured it out that A person has some claims, they view that members account activity and notice payments sent to the bank, other members, or pay for on-line auctions , and notice the off-line (ebay) payments and automatically request tracking numbers knowing that there is none, as I see it , and now know, after appealing my case with paypal , they informed me We have conducted a review of a payment that you received. In this case, returning the funds to the sender was determined to be the appropriate action, and we have completed a reversal of the payment.

The funds from the following transaction have been debited from your account: I contacted them and said What about the items I sold him , you are allowing the sender  to just keep $1785.00  and keep the items I sold him ? Response, Since you were unable to provide Tracking numbers, unfortunatley you are not protected with Seller Protection Policy, Please read our users agreement . ohhh Not this again, so I have decided to take some action, as today I just found out that Paypal’s unjust reasons for placing my account in a limited status, has now contacted Ebay in which I have been Suspended in voilation of Sec. 9 FPA  NOTICE from Ebay. Unbelievable Process !!

Thank you for allowing me to post my experience, and if anyone has any idea as to what my options may be, Please know in advance, I am thankful for any help or advice you may have.

Posted: April 20, 2012 at 8:43 am

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