Another post regarding Paypal holding people to ransom

[shacklestore]

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.

[lyndal1838]

I doubt that you will get anywhere.   I tried to revoke a DD through my bank and was told it could not be done as I had given the company the DD authorisation in the first place and only that company could revoke it.

I have been very wary of DDs ever since....in fact I hate them with a passion.

[bookmanx500]

That's WRONG. Under the Banking Code of Practice, Banks must act on your request.

Barrie

[lyndal1838]

Well it was many years ago now....probably the best part of 30 years ago.

Ever since I have avoided DDs as far as possible....those that are unavoidable are always paid in advance by me so there is never any need for the company to raid my account.

[englishrosegardens]

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.

[digital*ghost]

I'm actually wondering when this changed?  As it used to actually be possible to add a bank account and withdraw funds to it without verifying it (the verifying and direct debit side was necessary to make payments, eg eCheques, but it wasn't necessary in order to withdraw). 

I know a lot of their policies have changed in recent times, and with eBay agreements in place that automatically authorise them to instruct PP to deduct fund from an account balance I can see that they may require at least one alternative / verified funding source, but I wasn't aware every bank account added to PP had to be a funding source. 

Edited to add - might be better if I read all the posts properly before responding.  I see that my question (which I'll just leave here unedited anyways), was answered above by englishrose.  

[thecatspjs]

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@lyndal1838 wrote:

Well it was many years ago now....probably the best part of 30 years ago.

Ever since I have avoided DDs as far as possible....those that are unavoidable are always paid in advance by me so there is never any need for the company to raid my account.

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Advice you have provided then is irresponsible.

Would have been far better to include the "best part of 30 years ago" comment in your original comment, so that everyone could take your commentary with a grain of salt.

[lyndal1838]

Nice to see you too Cats.

Merry Christmas.

[thecatspjs]

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@lyndal1838 wrote:

Nice to see you too Cats.

Merry Christmas.

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30 years ago.... lmao .... you've outdone yourself

[lyndal1838]

Still lyao this long after Happy Hour ended?