Consumer complaint received 2016-08-19
Company: Paypal Holdings, Inc
State: TX
Product: Money transfers
Sub-product: Domestic (US) money transfer
Issue: Other service issues

Complaint:
Good Day to whom it may concern, I am respectfully requesting that the hold on my funds/account be lifted. I am not necessarily requesting that my account be re-opened or allowed to continue to use the PayPal service, as I have already taken my business one of your largest competitors that I am no longer in need of PayPal 's services. 

I have been made aware that the limitation on the account can not be appealed. Although I disagree with the decision to close my account to future business I will abide by it - however because I feel that holding my funds for 180 days for a non-fraudulent violation of PayPal 's Acceptable Use Policy is excessive, and perhaps a punitive abuse of power, I will be filing complaints with the attorney general of California, as well as the DBO of California in order for them to mediate and decide whether this practice is acceptable in my specific case. Additionally, i am not satisfied with the current response to hold my interest bearing money for 180 days solely at the discretion and best interest of Paypal for monetary benefit and security purposes. 

I understand PayPal 's need for holding funds for credit card chargeback purposes, however due to the sheer amount of customers compared to the rate of claims I feel that any reasonable person would conclude that holding my entire balance for 180 days is excessive and may be viewed by some as punitive or as already stated, an unnecessary abuse of power and perhaps even contrary to the laws of some states. That being said I have no problem with, and agree to leaving a balance of {$500.00} for credit card chargeback purposes for the duration of the 180 days. I feel that this is a fair resolution while still leaving PayPal with the means to charge back any future credit card disputes to my account. 

Should you remain to not release my cleared funds, please provide to me a lawful reason that allows you to hold my money for 180days? I do not wish to wait 180 days nor is this a reasonable amount of time to continue to operate a business in the same manner with cashflow disrupted due to gross negligence and lack of information regarding limitations. Proof of past gross negligence can be seen in XXXX PayPal Inc., XXXX XXXX. XXXX XXXX XXXX XXXX XXXX California XXXX where Plaintiffs allege that PayPal improperly handled disputed transactions on PayPal accounts and improperly placed holds and reserves on accounts or closed or suspended accounts. 

Section 1841 of the state 's Money Transmission Act reads : " Every licensee or its agent shall forward all money received for transmission or give instructions committing equivalent money to the person designated by the customer within 10 days after receiving that money, unless otherwise ordered by his or her customer. '' I am mindful of the Civil Procedure Rules and am seeking a mutually satisfactory settlement of this issue. As a result, I am informing you of my willingness to cooperate in voluntary, non-binding and confidential mediation.

Company response to consumer: Closed with non-monetary relief