Paypal Warning

[Kayla]

Yesterday, when I downloaded transactions from my bank, I was shocked to discover that an automatic transfer of $872 was made to Paypal, wiping out my checking account balance. I use my paypal account infrequently and for small sums only.

When I called Paypal (who had already flagged the transaction for fraud), I was told it will take 11 days to return my money! They have already acknowledged that the charge was fraudulent, and they cannot return my money immediately?

I was also promised an affadavit to take to my bank, but they still have not emailed it. They accepted no responsibility for the matter, telling me that my bank wil help me out with any bounced checks and charges incurred. My bank, understandably, insists that Paypal must take some responsibility here.

Paypal has not responded to my emails, nor did they contact me upon discovery of the fraud. I am really disgusted with how they are handling this.

On their website, they have lots of information on protection, which applies only to purchases made. Apparently, if someone steals close to $1000 from your checking account using their service, it doesn't bother them too much.

I am going to be looking into other options, and suggest others be very, very careful.

[babymama]

Oh, man! This is terrible!

So sorry to hear it. I'm gonna go check my transactions on Paypal. Thanks for the warning!

Lydia
Mama to Santiago, born 11/16/03

[NYmom2be]

This is why we openned up a second checking account at our bank just for Paypal. We can transfer $$ in or out whenever we want.It gave us the security of keeping our personal funds out of reach. Good luck. I hope your problem gets resolved quickly.

[KrisM]

I'm sorry to hear this happened to you.

This is one of the reasons my DH is so against us having a Paypal account. Check out www.paypalsucks.com. There might be something there that could help you.

[Kayla]

You know what, the rep also recommended that I open another account, but I just don't have the time for that, and what about the fees, etc.

Today I called again and spoke to another rep who told me basically, "We have to go through a lot of steps with fraud or we could be fined a lot of money, therefore I can't help you." I'm really not to concerned about their being fined, as they don't seem to care about my money.

Also, he told me he would send the affadavit again, without which I can't get my money back, and guess what? I still have heard nothing from Paypal! They have not responded to my email, nor have their reps done anything.

I'm just waiting for my account to be unlocked so I can close it permanently.

[mariza]

Wow, I'm so sorry you have to deal with this. I've only used PayPal 3 times so far (recently addicted to Ebay), but wondered if anything like this ever happened. I was nervous so I did not use my checking account on purpose. I have a credit card with a low ($500) limit that has a zero balance that I was going to close. Instead of closing it, I linked it to the PayPal account specifically for that reason. I figure if anything like that happened to me and PayPal wouldn't help, I would at least have Visa Protection. Then I pay off the balance as soon as the charge goes through. Good Luck straightening this out!

[Kayla]

Update: I got my money back. After dealing with several inept customer service reps, the last of whom told me that I would need to input my social security number in order to requestmy money back (Yeah, right, I'm going to give Paypal more of my personal info), I finally got someone who helped me and initiated the return without making me jump through hoops.

I took my bank account info off of my Paypal account, so I am no longer "verified" and not eligible for their protection, which honestly is a joke.

I am still disgusted at the way this whole thing was treated by them. They never responded to my emails, and it took 4 calls to them to find someone who was willing to return my money.

[TDS1]

That's a great ending to the story! You are extremely lucky. I have not given them my bank account information for that very reason. Glad it worked out.

[Kayla]

Today, I found that Paypal has transfered another $872 into my checking account! So, they have limited my account again and want me to give them my bank account info to unlimit. No thanks.

I am very happy to give them their money back, since it is not mine, but first it only seems fair that they should have to complete an affadavit that I will not send them and give me their social security numbers, birthstones, and first born children.

[angusmom]

You probably have done this already, but I just wanted to mention that you definitely should change your PayPal password immediately. Possibly the problem happened because someone got your password. And make sure you change it to something that is a combination of letters and numbers and not any word that can be found in a dictionary.

[sugarsnappea]

This is terrible. About a year ago someone tranferred $1200 from my AMEX thru Paypal. They tried to take it from my bank account first, but luckily that account was old and closed. I have the same story as you, no return phone calls, no responsibility taken, etc.. It really is disgusting that they allow these things to happen. Grrr. :(

[masetane]

OK - this is really freaking me out!! If I take off my checking account with Paypal - do they still let me use my account with a credit card? What are the limitations? That's what I used to have but in a few years I reached $2000 in transactions and they said I had to become verified/provide my checking account. I cannot open another checking account. I'd close it but it really is convenient for me to pay and receive money from people. Any advice???
Caroline
http://fool.exler.ru/sm/ma.gif
Isabelle 10/1/00
Nicholas 2/27/03

[Momof3Labs]

I don't have a checking account linked to my Paypal accounts, and never will. I can still send and receive money (pay using credit card or existing funds) and if I want my money out of Paypal, I request that they cut me a check.

[masetane]

WEll shoot - I didn't want to add my checking account at all. I was happy doing existing funds/credit card. However, I had a reached a $2000 limit in being a non-verified member and HAD to become verified (took me a few years to get up to that limit.

I'm heading to the bank tomorrow to open another checking account/finding out the fees because this makes me too nervous.
Caroline
http://fool.exler.ru/sm/ma.gif
Isabelle 10/1/00
Nicholas 2/27/03