Paypal

Paypal Paypal.com Abusive unfair business practices Internet

27th of Jun, 2011 by User609755

This is a complaint to make everyone aware of unfair business practices Paypal uses in regards to their users' financial information and, perhaps, solicit ideas from others, who experienced their behavior, in how to resolve this. I attempted to reason with them to no avail. I had a business account setup with Paypal to process payments for memberships for a small dating website. They have reviewed the website while setting up my credit card processing, etc. Four years later, December 2010, after what seemed like a productive business relationship, I was informed that my website violates Paypal's AUP. Basically, some member profiles had language that could be construed as sexual (moderated website: no explicit description of activity or explicit pictures were ever allow on my website!), etc and per Paypal, "they prohibit use of Paypal's services for such purposes, etc." I tried to find out more from them, received a phone call from someone and discussed my confusion how this is different from match.com (where I have seen far racier profiles) or adamandeve.com (where they quite explicitly describe their sex toys), but to no avail. Mind you, my website is non-explicit and fully moderated. That notwithstanding, it is a matter of what Paypal calls "brand protection", so I let it go. It is their brand, they do not want my business or affiliation with me. No problem. Here is where interesting things start. My account was, of course, now "limited." Not much of a balance, but still not sure why I have to wait for 6 months before I can remove it. Most credit card providers will not even deal with refund requests after 30-60 days. I had a very lenient refund policy and if a member felt they are getting less they paid for, I always volunteered a refund even if they did not ask for one! No complaints from Paypal regarding payment processing in all 4 years. I, myself, even reported what looked like a suspicious payment to Paypal, asked to investigate, and refunded it once or twice! After waiting 6 months and having transferred my balance out of Paypal account, I proceeded to remove my bank information from my profile only to find out that I am not allowed to. Now, I understand that Paypal will keep my account locked and limited (will not use any of their services in the future, anyway), I have a huge problem with them having what is basically a debit authorization on my bank account in perpetuity. I discussed this issue with my bank and they told me that since I authorized Paypal through their website, I also have to "deauthorize" through the same process. Having read plenty in the past about others' woes when dealing with Paypal after their accounts were limited (just do Google search!), I figured I will write them a strongly-worded email stating that while I am not requesting they close my "limited" account, I want my credit card and bank account information removed because I do not want to fall victim to someone hacking their databases or in other way abusing my accounts (debit in perpetuity!). They declined on the basis that they did not want the same bank information used in creating other accounts and offered their assurances on how well they protect their users' information. I contemplated a bit further and decided to seek a compromise. I offered to send them a signed affidavit where I will state that I will not be creating any Paypal accounts and have them remove financial information from the account in question without removing the account itself. They declined and informed me that I exhausted my appeals. Again, they offered their assurances about their security. While I was dealing with this account and, obviously, frustrated with their attitude as well as delivering on my future promise of not creating new accounts or using their services, I went ahead and closed my other Paypal account, which only had a few transactions and was barely used. More about this account later. Sorry for the long introduction. It is only to show the situation in correct light (it is not about Paypal processing service--a few minor annoyances, but otherwise alright). So here is the basis of my complaint: *** I am absolutely not happy that they are retaining my financial information, even after I specifically asked them to remove it. My bank, in fact, stated that after I requested them to "deauthorize" my account for debit, they must honor it, and any transaction after the fact would be considered illegal. *** I am not comfortable with their retaining my financial information, especially in the light of the following: Just do a Google search http://www.google.com/search?sourceid=chrome&ie=UTF-8&q=paypal+accounts+hacked and find out for yourself. Remember the 2nd Paypal account I mentioned of closing? Well, that account was rarely used. It was not limited. Before I closed it, I removed bank information from it and Paypal confirmed it via email. The kicker?! Once I closed the account--having resisted Paypal's temptations not to 4 times--I received an email stating that my billing arrangement with iTunes Store has been cancelled. I don't remember ever having a billing arrangement with iTunes Store. I never bought any music from iTunes (I know, it is impossible to believe!). Now, read the second link above about Paypal/iTunes fraud and you tell me why I should trust Paypal with the security of my financial information (N.B., Paypal was not implicated in this fraud). The way I see it, if they don't have my information on file, there's nothing to steal. Even one of my credit card providers-a huge bank--was hacked. So why should I trust Paypal with my information, when I don't even plan to use their services anymore?! BTW, when I replied to my 2nd account cancellation notice, telling them that I did not have a billing arrangement with iTunes, I received an automated reply (with my full name 2 hours after I cancelled the account!) telling me I have to submit my inquiry via a website. Nice! I promised them I will not roll over and let it slide, so this complaint is my first step. I am considering others as well, including filing this complain with a Better Business Bureau. Any other ideas?

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