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Recent Problems with PayPal permanetly limiting accounts


schludermann

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Folks heads up,

Something bizarre is happening with PayPal. There seems to be a global rash of account freezes happening for all types of users.

PayPal performs a review and if they decided to, the account is "permanently limited", it means money can not be transacted, in either direction. When PayPal limits the account, they state there will be a second review in six months and provides a link to the PayPal Terms Of Service.  This account limiting can happen to personal or business accounts, accounts with no balance, active accounts with high balance. PayPal has been reported taking $2500 for each violation.

I had less than twenty in the account and figured out I could use the balance for bill pay on the PayPal credit card held by Synchrony Bank.

 

I had been using the PayPal account for Amazon reviews for about fifteen months and had just stopped doing that once Amazon turned off my ability to post reviews. Npw I do deep discount coupons. The Chinese sellers were sending rebates to my PayPal account. I checked for disputes and there were none.

 

 

 

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  • schludermann changed the title to Recent Problems with PayPal permanetly limiting accounts

Haven't had any issues in all of the years I have had Paypal. How were you informed? There are scams of that nature out there. Did you contact Paypal directly to inquire?

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On 1/3/2022 at 5:29 AM, schludermann said:

Folks heads up,

Something bizarre is happening with PayPal. There seems to be a global rash of account freezes happening for all types of users.

PayPal performs a review and if they decided to, the account is "permanently limited", it means money can not be transacted, in either direction. When PayPal limits the account, they state there will be a second review in six months and provides a link to the PayPal Terms Of Service.  This account limiting can happen to personal or business accounts, accounts with no balance, active accounts with high balance. PayPal has been reported taking $2500 for each violation.

I had less than twenty in the account and figured out I could use the balance for bill pay on the PayPal credit card held by Synchrony Bank.

 

I had been using the PayPal account for Amazon reviews for about fifteen months and had just stopped doing that once Amazon turned off my ability to post reviews. Npw I do deep discount coupons. The Chinese sellers were sending rebates to my PayPal account. I checked for disputes and there were none.

 

 

 

WOW!! This totally shocks me. E 've been with them since their inception and never had a problem. Thanks for the heads up!

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9 hours ago, episemion said:

Haven't had any issues in all of the years I have had Paypal. How were you informed? There are scams of that nature out there. Did you contact Paypal directly to inquire?

Great idea to directly contact Paypal...

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16 hours ago, episemion said:

Haven't had any issues in all of the years I have had Paypal. How were you informed? There are scams of that nature out there. Did you contact Paypal directly to inquire?

I probably will contact PayPal, eventually. However, since I was only using PayPal for Amazon Review Rebates and Class Action settlements, and I figured out a way to empty the PayPal Balance, by applying it to the PayPal master card held by Synchrony bank.  I'm not very affected. I updated the payout options for pending settlements.  I'm monitoring what's happening with others, hopefully someone will stumble upon the magic words. Or another classaction lawsuit will ensue. I've been part of some PayPal class action suits in the past.

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Here's the text of the email PayPal sent:

 

After a review, we decided to permanently limit your account as we detected activity on this account that is in violation of our buyer protection policies.

You'll not be able to conduct any further business using PayPal.

Based on this decision, if applicable, you are no longer eligible for PayPal Seller Protection as per our User Agreement.

This will apply to all existing and future cases you receive.

Any bank or credit card information that's linked to your PayPal account cannot be removed nor can it be added to another account. You can still log in and see your account information but you can't send or receive money.

If you have funds in your PayPal balance, we'll hold it for up to 180 days. After that period, we'll email you with information on how to access your funds.

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6 hours ago, Sandy21 said:

Great idea to directly contact Paypal...

One Business woman, running an ebay store, has been dealing with this for some time and the story PayPal gives, changes. Apparently PayPal is changing policies seasonally and that moves the goal posts. 

 

When I worked for Apple, there were customer's that would call in with restricted or flagged accounts. There were special handling procedures and support bounds. So, I'm hoping to prepare myself for the most efficacious call. I have 140 days still.

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On 1/4/2022 at 5:01 PM, Sandy21 said:

Great idea to directly contact Paypal...

Going directly to the Paypal site will reveal if the message came from them as it will be in your account under "messages". Also , any emails from Paypal will have your name and not a generic salutation.

 

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On 1/5/2022 at 1:57 AM, ksedwar said:

Do you only do surveys or are there other sources if income going into your PayPal?

I used PayPal for general purpose funds aggregation and  I then used Paypal as utility, phone, rent, ebay or other bill pay. I had a range of inputs from survey rewards, craigslist, consumer rebates, class action settlements, Amazon, Walmart and other review rebates and small check deposits to name a few.

 

BTW, why are my posts being Admin moderated so frequently?

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10 hours ago, schludermann said:

BTW, why are my posts being Admin moderated so frequently?

Any post that includes a link or meets certain other criteria will be automatically hidden and go into the moderation queue. We have had a huge increase in spam and this is actually the easiest way to deal with aggressive and creative spammers. I even have to approve my own posts when they include a link.

 

Thanks for the extra info. I'm wondering if people who use Paypal only for surveys are getting their accounts suspended too or if it is mainly accounts like yours who use Paypal as an aggregate for multiple non-taxed income sources. The current administration has become extremely aggressive in the collection of non-taxed income. It's probably easier for Paypal to just shut down accounts then it is for them to have a revolving door for tax auditors to come and go and/or cheaper for them than to operate like an actual financial institution or payment processor. 

 

I tried to find a neutral source but that is impossible today so just search "87,000 Additional IRS Agents to Go After Tax Dodgers" to see. It's just my speculation but I'm thinking this is what is causing this latest Paypal crackdown.

 

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Have not had any issues so far , but i only use Paypal for surveys and to make a few odd minor payments. Just checked and mine is fine.

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