Big Changes Coming To PayPal’s Frozen Funds Policy [Report]

    January 22, 2013
    Chris Crum
    Comments are off for this post.

Eleven days ago, TechCrunch ran a story about PayPal freezing a science fiction writer’s fundraiser, and then apologizing for doing so. The company even donated to the writer’s fund.

“We’re going to do a lot more communicating before making some pretty aggressive changes to our system to make sure that this stuff doesn’t happen,” PayPal senior communications director Anuj Nayar was quoted as saying. “At the same time, when we find out we’ve made mistakes, we’re committing to get it fixed and apologize.”

Now, CNN is reporting that “agressive changes” are coming to the company’s frozen funds policy, as the company promises a “massive overhaul of it system within the next several months”. Julianne Pepitone quotes Nayar:

“These are not minor — these are aggressive changes,” said Anuj Nayar, PayPal’s senior director of communications. “This is a fundamental shift in our business operations.”

Nayar said he can’t go into specifics about what will change, but transparency is a major focus. “We want to be clear about how people can get out of the [frozen funds] situation,” he said. “We need to get better about helping people, or explaining why actions are being taken.”

That’s not all that’s changing at PayPal. The company has already announced some big partnerships this year that will see PayPal becoming a payment option in major retail stores all across the U.S.

In case you’re wondering why there’s a picture of Jeff Goldblum in this article

  • Greg

    They could start with allowing you to deposit more than 500 dollars in a month. Really? You hold my money in an account drawing interest and it’s my money and I can’t deposit it for another month. Who decided this?

    • Mike

      Greg all you have to do is verify your bank account or credit/debit card. Then you can withdraw all the money you want. We’re talking two clicks of a mouse and punching in a few numbers on the keyboard.

  • Mike

    Greg all you have to do is verify your bank account or credit/debit card. Then you can withdraw all the money you want. We’re talking two clicks of a mouse and punching in a few numbers on the keyboard.

  • Greg 2

    My account was inactive for a while. Paypal confiscated my funds, without reimbursement–taking all my account funds! When I complained, they said it was policy for inactive accounts and that I was sent notice beforehand. I did happen to see the email when it arrived in my junk folder. I assumed it was another spam with a ludicrous claim to garner my attention. Wrong! It apparently really is Paypal’s policy to simply claim inactive funds as their own! We were talking only around $100 or so, so I have not pursued the matter any further.

    • paul

      In California, banks are required to seize monies left dormant in bank accounts for over one year. Perhaps Paypal is required to do the same. If all else fails, contact your State’s Controllers office and see if the money was escheated to them. They’ll refund it to you.

  • harlan antler

    there is only one language these arrogant little barbarians understand: stop using them…..attack their bottom line. Ebay is now full of scammers and paypal’s inability to control the site has led to swooping in and taking some more. They get the interest on what, in the aggrgate, is a huge amount of money. Their confiscation of our money reflects their corporate conscience.

  • Frank The Tank

    Paypal did more then that, I was a victim was double charging and so are other people I know. All they tell you is they didn’t double charge you for the same item, twice. Thats how they fixed it, I quit ordering on ebay over a year ago, because of the incident. They don’t care, we need more stories like this to let the people know. I can quit buying, other people can quit buying, but more new people sign up without knowing. If they knew what scammers ebay and paypals are they would not buy from them.

  • ghostman34

    Apparently, that is all Mike knows how to say.

  • http://www.homeopathynotes.com Sandra A. Hermann-Courtney, CMT

    Oops…grammar error you need to correct. You have

    a “massive overhaul of it system within the

    Consider changing to: a “massive overhaul of its system within the