Legal Question in Business Law in Ohio

Hi,

I have a Paypal account and am a Business-grade user. i.e. I am cleared to use my account for business purposes such as selling on Ebay and running a business through which I collect payments through Paypal. However, as of August 10, 2010, Paypal has restricted my account with no appeals. After calling Paypal's customer service and speaking to a few representatives, I learned that I am banned from using Paypal's services and my account is permanently restricted. Upon reviewing the User Agreement, a bolded statement says:

"We may close, suspend, or limit your access to your Account or the PayPal Services, and/or limit access to your funds for up to 180 Days if you violate this Agreement, the PayPal Acceptable Use Policy, or any other agreement you enter into with PayPal. "

I familiarized myself with the User Agreement, Acceptable Use Policy and the various other agreements when I first created my account in 2008 and now as well. From what I can tell, I have not violated anything that is stated in the agreements and used my account exactly as I was told. There is no (clear) reason for my account to have been restricted or for myself to be banned from using Paypal. When I spoke to a representative, she stated that there was no reason for what happened and suggested that I withdraw my remaining funds from my account by requesting a check. Upon asking to speak to her Supervisor, I was denied.

I use the Business aspect of my account to take payments for various odd jobs I accomplish for those who possess the basic knowledge of a computer and can pay me through Paypal (whether by credit card or their own Paypal account) and usually for when I sell things through a few forums I am a member of. Recently, however, I began using Ebay and saw that I may be able to sell on there too. But this idea has been cut short by the loss of my account. In fact, the loss of my account has prevented me from using Ebay altogether or buying things with my Paypal account.

Would I possibly have a case against Paypal if I decided to go through with a lawsuit against them in the hopes of regaining my account and monetary compensation for the stress caused by this sudden event? It's going to be very hard to overcome this hurdle if not.


Asked on 8/12/10, 5:18 pm

1 Answer from Attorneys
Thomas Richards Richards & Associates Co., LPA

from my prior dealings with Pay Pal, it appears they are now owned by General Electric through the GE Moneybank.

This may or may not still be part of the large General Electric Corp but it appears that it was at one time.There are actions you can take to enforce your rights to credit accounts as a consumer. you are still considered a consumer if you use your account for personal use.

They need to give you an explanation of their actions . let me know if you want us to help by contacting them for you and pursuing the cause of this problem.

Thomas Richards

513-871-8755

cincinnati,OHio

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Answered on 8/18/10, 9:41 am


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