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PayPal Sucks Big Time!!!

June 1, 2011

PayPal Sucks Big Time!!!

We’re having a major problem with a criminal organisation called PayPal, and we’ll use this page to give you a detailed account of the way PayPal is making their money and screwing their clients.

We’ll keep you posted. Bookmark this page if you want to read the chronological story of the way PayPal is “solving” this problem.

In the mean time we have filed a complaint with BBC Watchdog.

paypal sucks

There are many websites like PayPal Sucks and About Paypal, with thousands of horror stories.

So why don’t governments shut them down?

What’s the problem?

PayPal has blocked our account. We’re not able to transfer money from the account because PayPal’s software doesn’t allow us to change or confirm our details.

This is what PayPal says:

“Why is my account access limited?

Your account access has been limited for the following reason(s):

  • 22 Jan 2011: You have received £1,900 or more in total payments to your PayPal account in this calendar year.
    PayPal is required by law to comply with European Union Anti-Money Laundering regulations by collecting information from customers when they receive more than £1,900 in total payments within a calendar year.
    Until you provide us with this information you will be unable to send or receive money using your PayPal account.
    Please go to the Resolution Centre for more information on what you need to do. When PayPal limits an account, your funds may be held until we’ve confirmed your identification as per the User Agreement.”

Okay. Now what?

PayPal: “We are legally required to ensure that you complete the Direct Debit Agreement in order to link your bank account to your PayPal account for instant purchases and bank transfers.”

Okay, we go there and click the link. The name of our bank (Alliance & Leicester) shows up, but Alliance & Leicester has been taken over by Santander. PayPal’s software won’t allow us to alter this information. What do we do now? We decide to add a bank account (the Santander one) and click the link. A new screen pops up but the account holders name is already put in by PayPal’s software, and PayPal’s software won’t allow us to change this name. Further more, PayPal says this: “Please note that we charge a fee if the funds are returned (to your bank account) because your PayPal account Business Name does not match the business name on your bank account.”

This means that PayPal’s software doesn’t enable to complete the Direct Debit Agreement, and when the Direct Debit Agreement isn’t completed, we cannot touch our money and PayPal keeps profiting from the interest of our money. Forever.  This can’t be right.

Hello PayPal,

I’ve tried everything to get my money out of your PayPal, but your software and your people won’t let me.

Your Steffi at the Compliance Department sent me an email this morning in which she asks for a copy of a valid identity document of my partner, and I do want to send it to her, but the email says that it’s not able to reply to it, so I can’t attach the copy of his passport. She tells me to log in into my PayPal account and use the contact link. However, that link produces a pop-up and you can’t attach any files to that. So that’s one road to do the things you ask me being blocked by your staff and your software.

Another road to end the limitations of my account is deliberately blocked by your PayPal software. If I want to Verify a bank, it says XXXXXXXXXXX. I can’t change this information in your software. It should be Xxxx Xxxxxx, as it says in my profile, but it keeps saying XXXXXXXXXX. Then when I press set up direct debit, it keeps saying alliance andleicester, but alliance and leicester has become Santander, and your software won’t let me change that information either.

 So whatever I want to do to get my money out of your PayPal (mind you I will write an article about this and let the world know which methods PayPal uses to keep our money as long as possible, in order to make money out of it), I’m not able to do it.

 I will try to attach the requested information to this email, but I’m sure it won’t work, I’m sure I will be redirected to the contact button on my account page, which doesn’t have the possibility to attach documents.

Why use the link to (or whichever other link on your pages), if they mean you’re redirected to the silly contact page?

 I assure you that I will cancel my PayPal account as soon as I have my money back, the sooner the better I tell you, because I don’t want you to get a single penny of my money).

 And whatever you do to excuse yourselves, and how lame and transparent you’re at it, I gave you plenty of time to solve this problem, while you keep stalling and try to get as much money out of my PayPal credit, but nevertheless I will expose you, I will write my article about my experiences with PayPal, it will be in the Google Top Ten within several days, and you will regret your fuck-up very soon, just like Axa France when they thought they could mess about with me, only to regret it so much that they begged me to remove my article from our website.

 You’re responsible for this mess you’re making. If you haven’t got the personnel to deal with these matters in an intelligent way, if you’re cheap skating by relying on foreign call desks, if you don’t give these people the power to deal with these matters in an intelligent way, you are one hundred percent responsible for the bad publicity that comes out of it. I don’t pity you, you are responsible.

 And I hope and expect that you and your company will suffer from this severely.

First Google result on, search term "PayPal" -- Nr 10 within 43 minutes

A lot of people leave a small amount of money in their PayPal account. PayPal puts this money in an American bank account and receives interest from this money. So it’s in PayPal’s interest to leave this money in the bank as long as possible. In other words, it’s in PayPal’s interest to make rules and regulations that  make it as difficult as possible for people to get money out of their account. And that’s exactly what PayPal is doing. PayPal clients are being robbed (by PayPal).

If you, like us, are sick and tired of criminal organisations like PayPal, why not try an alternative: the Real Merchant Account.

First result in Google English, search term "PayPal sucks". Position 10, 49 minutes after publication.

Send your story to Watchdog and it could feature in an upcoming programme!

June 3, 2011. As PayPal has not responded to our many emails, other than sending us automated messages you can’t reply to and don’t offer any help at all, we have filed an official complaint against PayPal with the Financial Services Authority (FSA), the regulator of the financial services industry in the UK. Further more we have sent another complaint to PayPal in which we explain the situation once more. (See above.)  Previously, to “solve” the problem, PayPal has advised us to downgrade our account from business to personal. We have applied for that, but PayPal refuses to respond to our request. We have asked PayPal, “Please stop sending us your useless automated messages without even reading our mails and studying the case. This case deserves proper communication and requires some intelligence of your staff.”

June 9, 2011. We have received two small amounts of money in our bank account, and PayPal tells us, “

  • Log in to your PayPal account at
  • On your Account Overview page, click the bank link in the to do box and enter the two amounts when prompted.

Confirm your bank account to get Verified. It’s that easy.

Now that you’ve confirmed you own your bank account, we are able to verify your PayPal account and you’ll now be able to make as many payments as you like with PayPal.”

June 14, 2011. Our PayPal account is still limited, despite the fact that PayPal hass confirmed that everything is okay now. We still get this message: “Your account access is limited. Learn how to remove this limitation”.  If we follow that link we come to a page thats says, “Lift receiving limits with account information.” The page shows that we have done everything PayPal asked us to do: we added our bank account, we submitted the direct debit agreement, we confirmed the bank account, we identified ourselves, we completed the online form, and we confirmed our personal information. Yet there is a message on the page, saying “More account information required”. Nothing is explained, no link to any page which tells us which additional information PayPal needs now, and the only link to click is “Cancel”. Do we want to Cancel, now we’ve come this far at last? We press the button and return to the previous page. Nothing has happened. We have now entered the two amounts twice within six days, with the date they were sent to us, and PayPal still refuses to let us use our PayPal account. They keep making money out of our money for no other reason at all than to rob us, and it’s a bloody shame that these crimes can still be committed without any punishment.

So we’ve sent yet another complaint to PayPal. Will they ever learn? 

On June 21, 2011, the Financial Services Authority (FSA) sent us the following email:

Dear Ms Henderson

Thank you for your email dated June 2011, in which you raised issues about the operation of your PayPal account.

I would like to thank you for taking the time to prepare and send us your enquiry. I am sorry to learn of the problems you are experiencing, and appreciate the concern this situation has caused you. I thought it would be of use to explain the steps that you can take in pursuing your complaint against PayPal and the role of the Financial Services Authority (FSA).

I would  like to explain the relationship between PayPal and the FSA. PayPal ceased to be directly authorised by the FSA in July 2007, and fell under the authorisation of its parent company.  PayPal’s parent company is based in Luxembourg, and is regulated by the Luxembourg authorities, therefore we do not have any jurisdiction over the firm. For further information about the firm’s obligations to consumers, please contact the Luxembourg authorities at:

 Commission de Surveillance du Secteur Financier
 1110 Route D’Arlon


 However, the parent company took the decision to allow UK based customers to continue to have access to the complaint and compensation arrangements available to customers of UK based companies. Please find below details about how to complain to the firm.

In the first instance, I can advise that the role of investigating individual complaints against the firms we regulate falls to the Financial Ombudsman Service (the Ombudsman). The Ombudsman is the independent service for settling disputes between businesses providing financial services and their customers, and I have provided below for your convenience a link to their website:

If you wish to make a complaint against a regulated firm you should;

* First complain to PayPal to give them an opportunity to investigate your complaint and, if appropriate, put things right; and then
* ask the Ombudsman to consider your complaint if the firm does not give you a satisfactory response within eight weeks.

All firms that are authorised and regulated by us must have complaints-handling procedures in place. Our complaints-handling rules require the firms we regulate to:

* send you a prompt written acknowledgement, saying it has received your complaint and is dealing with it; and
* ensure you are kept informed of the progress of your complaint.

If the firm cannot send you a final response within eight weeks, then they must inform you that you can ask the Ombudsman to consider your case. 

Below I have included a link to the consumer guide ‘Just the facts about making a complaint’, which provides further information on the complaints procedure, including contact details for the Ombudsman. In particular, the guide tells you:

* How we require firms to handle your complaint;
* The contact details for the Ombudsman if you can’t resolve the complaint with the firm; and
* other useful contacts.

In light of the above I thought it would be useful to explain about the role of the FSA. We are the UK’s financial watchdog set up by the government to regulate financial services. We protect consumers by setting standards that FSA-regulated firms must meet and taking action if they do not. We still take seriously individual complaints against the firms we regulate. For example, we require firms to categorise all the complaints they receive and to report this to the FSA regularly. We use this, along with information from other sources, including any information that the Ombudsman may share with the FSA, to build up a picture of where firms may be failing to meet our standards. As a result we then take appropriate action.

I trust that I have been able to clarify the procedure for making a complaint against a regulated firm. As advised if you are dissatisfied with the firm’s final response then you should contact the Ombudsman to pursue your complaint. I wish you all the best in reaching a positive resolution.

The Customer Contact Centre – how we can help

If you have any future questions on financial services and products, you may find it easier to call our Consumer Helpline on 0845 606 1234 (call rates may vary). You can also access relevant information online at and via the Money Advice Service website:

I trust this is of assistance.

Yours sincerely

Desmond Chin (Mr)
Customer Contact Centre
Financial Services Authority
Consumer Helpline: 0845 606 1234 (call rates may vary)

We are interested in finding out about people’s views and experiences of the services offered by the Customer Contact Centre. As a result, we employ a research agency to help us, and they may contact you, via the telephone, to see if you would be prepared to take part in a short telephone interview. If you do receive a phone call you are under no obligation to complete the survey.  Please rest assured that your details will remain confidential and will not be used for any other purposes; we are not trying to sell you any financial products or service, and no sales call will result from this.

If you do not wish to take part in any of our surveys, please call the Customer Contact Centre on 0845 606 1234 (call rates may vary), or email and we will ensure that your details are not passed on to the research agency.

To be continued…

2 Comments leave one →
  1. IT anarchist permalink
    June 9, 2012 12:35 am

    The PayPal experience I was recently subjected to is an travesty of natural justice, transparency, and fair business practice, and the incompetent actions subsequently taken by PayPal employees has destroyed all trust I had in PayPal as a supposed reliable and reasonable financial service provider.

    To wit, PayPal held up a very simple, perfectly legitimate, and low value financial transaction without reason and without offering me an explanation. The funds were coming from my own credit card (ie: not funds held or managed on my behalf by PayPal), yet PayPal would provide no information to me – the owner of the funds and the initiator of the transaction. This transaction was guaranteed by my Credit Card provider and in this regard PayPal was but an intermediary or agent. PayPal had no right and no authority to intervene without consultation and explanation. PayPal is my servant in such transactions yet, in affect PayPal held me to financial ransom by acting like a master.

    Immediately after I initiated the transaction PayPal reported to me (ie: the buyer) that the transaction had concluded successfully — yet, at the same time, PayPal reported to the recipient of the funds (ie: the seller) that the transfer had not been successful and would be ‘held pending’ for up to 24 hours while it was ‘investigated’.

    PayPal also advised the seller with out informing me and without my consent that the seller should not despatch goods I had already contracted in writing to buy. In affect this destroyed all trust between the seller and I, and caused the seller to believe I was trying to defraud them. In this regard, PayPal denied me recourse to natural justice since PayPal provided me no means to offer an explanation or to redeem my good character in the eyes of the seller.

    The direct actions subsequently taken by PayPal employees in this matter I believe also warrants a full internal investigation within PayPal – including the fact that PayPal employees refused to escalate my complaint to an appropriate level of authority within the company, or to connect me with either the PayPal Fraud department or the PayPal Complaints department despite repeated and insistent requests. Nor would PayPal provide any explanation which would enable me to take remedial action on my own behalf.

    As for the quality of service provided, the PayPal employee I dealt with clearly did not have the ability or the authority to satisfactorily explain or resolve the issue, yet they steadfastly refused to refer me to an appropriate level of authority within the company that would enable the issue, what ever the cause, to be examined and resolved in a timely manner such that the purchase transaction was not unreasonably delayed. This has resulted in damage to my reputation as a buyer, delayed delivery of goods I have paid for by up to a week, and caused additional financial impost.

    In short PAYPAL REALLY SUCK … so let the buyer beware, but not of the seller but rather the intermediary.

  2. Peter permalink
    February 12, 2013 7:45 pm

    I have had multiple issues with the legalised fraud company paypal
    Paid £800 pounds for a Spectrum analyser, never received the goods, told by Paypal to report it to the police in holland where the buyer was located, no money back from paypal (“your safe transaction company!!!”
    My wife was paid for a stay in a holiday home, the buyer paid and we received the money, the buyer stayed and was very pleased with the stay. Then Paypal recovered the money from our account with the explanation “the money was paid using fraudulent funds”, so why was it our problem?
    Paypal then insisted as per other comments that I set up a direct debit so they could “identify me”, they have had my account details for the last 5 years? they then kept the money in the account for the last 2 years.
    Multiple phone calls without success
    They have gotten to big for their boots!!!!

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