PayPal Helping The IRS Track Down Tax Cheats

from the so,-please-launder-elsewhere dept

A few years ago, in a widely publicized article, eBay's liaison to law enforcement proudly talked about how the company would hand over all sorts of info to law enforcement if asked (even without a subpoena). So, it shouldn't come as much of a surprise eBay-owned PayPal is helping the IRS track down tax cheats by handing over the identity of customers using PayPal from a variety of well known tax havens. Of course, anyone who thought it was a smart idea to launder money through PayPal probably shouldn't be all that surprised when federal investigators show up on their doorstep.

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  1. identicon
    Dave, 3 Oct 2007 @ 7:12pm

    Paypal destroyed my business

    I have been a member of paypal for about 5 years. I've never had a problem with them, well until I started a ebay business.
    I found a good honest supplier, after about 20 sales Paypal restricted my account. After 2 days, about 15 calls and an unbelievable amount of faxes I have sent to paypal. They wanted my driver license, a utility bill, my suppliers name, phone number and website. Then they wanted tracking numbers on my last 4 sales which I was using a dropshipper and was not able to send the funds to my supplier to get tracking numbers. And finally I went on a website for the product I was selling to get a letter from them stating these items was not fake. I received this and faxed it to Paypal and my account was no longer restricted.
    Well guess what, 2 weeks later I got up and as always checked my email and found out that Paypal closed my account because my credit score was not high enough for them, and along with that they are keeping the $6,182.00 I had in my account for 180 days.
    This money was not mine, it was my customers which are waiting for their item they bought from me. There is no way I can send that money to my supplier out of my pocket.
    Within 24 hours I had my first complaint from a buyer. I know I will lose this money. Also I received some items I already sold. I have to pay over $300 out of my pocket for shipping because I cannot print shipping labels as I always done from paypal.
    What I want to know is why paypal is running credit checks on me and what my credit score has to do with anything?
    My advice is stay as far away from paypal as you can. I had a good business going and they shut it down with no warning and for no reason. Now my ebay account looks like I was a fraud!!! I use to have a 99.8% feedback, not anymore. THANK YOU PAYPAL

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