21 DAY HOLD FINANCIAL SERVICE OMBUDSMAN WANTS TO HEAR FROM YOU

[hmmar-spier]

Having lodged a complaint against Pay Pal and Ebay in regards to illegally freezing funds and also referring the matter to the privacy commisioner.  The Financial Services Ombudsman also wants to hear about accounts where funds have been placed under the 21 day hold. Their office is anticipating an across board deluge of complaints and they wish to be advised of individual cases as believe this is a breach of law.

[lyndal1838]

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@teleasagabi wrote:

 I will put in a similar complaint with them using my money without my authorisation on top of just freezing my account. 

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How are they using your money?   Do you have any proof?

If you have no proof of anything then you will be making a fool of yourself if you start complaining about something that is not happening and weaken your argument about them holding your funds.

[i-love-my-sheep]

I wonder if it's in reference to the school yard gossip about PayPal investing the money into the short term money market? There is no proof of that, it was just an assumption by many members (I even said it myself in jest).

[lyndal1838]

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@i-love-my-sheep wrote:

I wonder if it's in reference to the school yard gossip about PayPal investing the money into the short term money market? There is no proof of that, it was just an assumption by many members (I even said it myself in jest).

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I have no doubt that is the case Sheepie, but it is not a good idea to assume anything and go flying off the handle and presenting it as fact.

In the USA paypal do invest funds in the money market and they even have an investors club whereby sellers can join and get interest on their funds being held by paypal.   I am not sure how safe it is though.....there are rumblings warning investors to think about taking their funds out of the system.

But that is in the good ole US of A where the banking system is a lot different to our system and a lot less secure IMO.

Paypal's APRA licence is very strictly controlled....they are a deposit taking/money transfer service and are not allowed to pay interest on the money they handle.  I assume that also means they are not allowed to invest it for their own gain either.

I am sure some of the ebayers who fly off the handle and make silly accusations don't realise that they are shooting themselves in the foot.....the Australian authorities are not going to take notice of these wild accusations that have no bearing on the Australian system.

[sexynsultry]

I had the money from a sale on hold for 21 days then the buyer opened a case (they had wrong address details in ebay item was sent n returned got proper address details resent item delivered) so now ebay have a hold on the money ($101) when I azk them to release it as I habe proof item sent and delivered they tell me thay are still investigating. ..investigating what? Its deleivered..

[i-love-my-sheep]

Ring PayPal and give them the tracking number so they can see that it's been delivered. They should then release your funds while you are on the phone. If you didn't post with tracking, you could still call them and try, but they may still make you wait the 21 days. 

[2106greencat]

Financial institutions (Banks etc) do indeed invest your money, that is how they make a profit, and how you earn interest, if they just held it for you in a safe out the back they would go broke.

In having said that, those same financial institutions do NOT make you wait 21 days before you can access your money (unless you have it as a term investment or some other structured account).

I have no doubt paypal invest your money, (read the very fine print on the paypal agreement you accepted when joining)  that is how they make money, it is the witholding of funds that I beleive is coming very close to (if not illegal) bloody immoral!

[lyndal1838]

Greencat, read my post #443 above.

Paypal does not have a banking licence in Australia.  Their APRA licence is very strictly controlled....it does not allow them to pay interest and I believe it also does not allow them to make money on the Aussie money they are transferring for their clients.

It would be interesting to know for sure just how close to  the wind they are sailing with this 21 day hold as the licence terms are that they are a deposit taking/money transfer service, not a banking service.

In the USA they not only openly deal on the money market but they also run and investors club where the sellers can join and get paid interest on the money that paypal is holding for them.

A very different system to the Aussie system.

[sexynsultry]

Ringing paypal is no use to me cos they keep telling me its not paypal but ebay has placed the hold.
The funds were held for 21 days and on the 21dt day ebay then placed a hold on the funds again.

Buyer has the item it was delivered weeks ago. Yet here I am. No money. No item. ..I sold the dam thingto help out my daughter with some money that week and here I am near 6 weeks later and still NO money....
this is an absolute joke!!!

[lyndal1838]

Report it to the Financial Services Ombudsman which is what this thread is all about.

Has your buyer opened a dispute, which would explain why ebay has placed a further hold on the funds?

[dazzledayz]

le Burmp