OMG - he's at it again!

[maffoo]

-D- wrote:
Something I read stated that PayPal will only refund your money from a fradulent sale *if* the seller has money in his PayPal account, otherwise you're SOL. Anyone know how true that is? (I use PayPal out of convenience BTW, but reading that was a little unsettling.)

This is true. I paid £510 for a laptop with the £500 Buyer Protection logo on it, which I then didn't receive. I filed a complaint, the seller never replied and I was refunded £480. I didn't pursue the other £20 (I'd written off the other £10 anyway as I only expected £500 cover), I was just glad most of the money was still in the seller's account, but it still bugs me that Ebay advertises £500 protection if you pay through Paypal but it's pot luck as to whether you get even a penny back  :madashell:

[maffoo]

BGary335 wrote:

And I beg to differ about Paypal not being able to go into your bank account. They've already done it to me several times. If you use a bank accouunt with Paypal, they WILL take money from it when you owe them.

I'd be interested to know how legal that is. Surely if they take money from your bank account without explicit permission it's theft? I don't think it's legal even if it's in their terms and conditions.

Not only does it seem like theft, but surely if you can prove that you shipped an item and they take money from you anyway it's aiding and abetting fraud?

[maffoo]

BGary335 wrote:
And it its extremely legal for Paypal to take money from your account. In essence, when you add a bank account to your Paypal account, it's collatoral. By doing this, you guarantee that even if Paypal has to go into your bank acoount all of your buying and selling expenses will be paid. It's Paypal and Ebay's way of knwoing that if you happen to owe money and have none in your Paypal account, they will still get what they are owed because they can remove it irectly from your bank account. It's as legal as a loan company needing collateral for a home or car loan. In essence it works exactly the same way.

I'm not so sure. Loan companies are quite strictly regulated and AFAIK they can't dip into a bank account to cover unpaid debts (unless there's prior agreement, eg. a direct debit for a credit card.) Are there any lawyers on this site who could clarify what rights Paypal has under the law?