Another post regarding Paypal holding people to ransom

I recently changed banks however Paypal won't let me withdraw funds to the new bank account unless I agree to Paypal's Direct Debit authorisation. The DD authorisation gives Paypal full access to funds held in that bank account.  

 

I don't need or want a DD in place and queried Paypal on this obligation but as usual have received nonsense replies. When I advised that if I didn't receive an explanantion or access to my funds I would escalate to a banking authority Paypal advised quote: "Should you wish to proceed with your escalation outside PayPal, we will respond accordingly then".

 

I had to grant permission so that I could access those funds without which I cannot continue my business. I have however contacted my bank and asked them to revoke Paypal's permission on their side.

 

 

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Re: Another post regarding Paypal holding people to ransom


@shacklestore wrote:

@englishrosegardens wrote:

When anyone wants to sell and use paypal they have to authorise access to their account.  This is becasue of the shonky sellers who get a heap of sales, withdraw their paypal funds, then disappear into thin air.  It's just paypal's way of ensuring that people don't abscond with the funds after fraudulent transactions.  If there was no way for paypal to recoup the funds in this sort of situation then it'd become a pretty popular practice, and guess who'd end up paying for it?  Yes, the honest sellers.  

 

They upgraded their agreement a few years ago so that anyone who continued to use paypal agreed to give them access to their bank account.  We all got an email about it and agreed to it by default (by continuing to use paypal).  

 

It's not really that much different to banks refusing to give you credit without some sort of security for the loan.


I have to disagree with you. I don't believe giving Paypal access to my bank account so that they can withdraw funds at will is safe. The agreement includes allowing Paypal to withdraw funds at the request of third-parties (whoever they may be). Also I don't believe that the reason Paypal is demanding this is to protect from shonky sellers. It may be one reason but it is a feeble reason. Those shonky sellers could just transfer fraudulent obtained funds to another bank account anyway. The direct debit agreement is a facility but I don't need it so don't want it. 

 

However there are 2 issues at hand regarding Paypal's position. The second one is Paypal holding into funds until I authorise their access to funds in my bank account. However whether it is legal will be clarified by the regulator once they get back to me.

 

 

 

 

 


Paypal had full access to your funds in your previous bank account so it's no different with your new account.  

 

Even if a shonky seller transfers the funds out of their account and there's nothing in it, paypal has authorisation to withdraw funds from the account and leave it overdrawn.  When they brought this in they put a clause in to say that any fees for being overdrawn as a result of this are the seller's responsibility, not paypal's.  By continuing to use paypal we all agreed to this by default, and we were all notified about it at the time so we had a choice.

 

One of the third parties involved is ebay - when there's a claim for item not received or not as described, ebay asks paypal to either retrieve the funds from our paypal balance or from the linked account.  Another third party would be another bank if someone does a chargeback through their bank.

 

You might not want the direct debit facility but you can't use paypal without it because they need security for your selling - end of story.  I'm not arguing the legality of it, I'm just stating what the paypal terms are and have been for some time.

Message 21 of 26
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Re: Another post regarding Paypal holding people to ransom

OP personally I would ignore most of the advice in this thread.

 

 

The Financial Services Ombudsman provides some very useful information regarding direct debits on their webpage

 

https://www.fos.org.au/consumers/more-information-for-consumers/cancelling-direct-debit-authorities/

 

 

 

 

 

Message 22 of 26
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Re: Another post regarding Paypal holding people to ransom

Open a new bank account and close that one.It works.Cheers

Message 23 of 26
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Re: Another post regarding Paypal holding people to ransom


@rikkupj301 wrote:

Open a new bank account and close that one.It works.Cheers


No it will not, that was the whole point of the OP's thread.

 

Quote:-

 

     "I recently changed banks however Paypal won't let me withdraw funds to the new bank account unless I agree to Paypal's Direct Debit authorisation. The DD authorisation gives Paypal full access to funds held in that bank account. " 

______________________________________________________

"Start me up I'll never stop......"
Message 24 of 26
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Re: Another post regarding Paypal holding people to ransom


@rikkupj301 wrote:

Open a new bank account and close that one.It works.Cheers


I could not do that....it was a Business bank account and you don't open and close those at the drop of a hat....too many other people to be notified.

Message 25 of 26
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Re: Another post regarding Paypal holding people to ransom

Care to provide some proof?

Message 26 of 26
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