Slight OT Paypal Story - Worth a quick read

[Jim VB]

I'm not trying to start a fight, and I do feel bad for your brother that he got hosed, but this is from their User Agreement:

"10.3 Reimbursement for Your Liability. In the event that you are liable for any amounts owed to PayPal, PayPal may immediately remove such amounts from your Balance. If you do not have a Balance that is sufficient to cover your liability, your Account will have a negative Balance and you will be required to immediately add funds to your Balance to eliminate the negative Balance. If you do not do so, PayPal may engage in collection efforts to recover such amounts from you."



If they deducted money from his bank, without his express consent, he should contact an attorney. Now.

[T206DK]

thanks for that info Jim. I doubt my brother will call an attorney about this, but it does appear as though PAYPAL violated it's own terms. I know for a fact that the money was withdrawn and his paypal account was never taken into the negative. From what I've been reading online this sort of thing happens just about everyday to PAYPAL users. Isn't this the reason for some of the lawsuits that are currently out there involving PAYPAL. I wonder if the # of filed disputes has risen recently for Ebay or PAYPAL. Personally I have had to deal with 4 in the last 2 months. before that it might be one a year or two.

[egbeachley]

Years ago Paypal used to pull money out from the underlying bank account. But a legal ruling against them prevents that from happening anymore. If it did all you would do is go to your bank and say it wasn't authorized. They will get it back for you after you sign a form (I did it last year).

[timzcardz]

No one will look out for you the way that you will.

I am familiar with PayPal's terms, and have no personal reason not to trust them, but for peace of mind I have a dedicated checking account linked to PayPal, that I don't keep any more than $25 in.

Limiting the risk means limiting the worry. Actually, with only $25 at risk, I don't ever worry about it.

[T206DK]

I too went and set up a specific bank account to use for Paypal. I never keep more than $100 in it at any given time.