I was sent this ... from someone on my list:
So there I was ... doing the entrepremanure
thing in the US.
My company was pulling over $100k a month from our business and I
was shipping $40,000 a month back to the UK as I was buying
properties and land quite heavily back then.
Now, all our income came to us in the form of commissions paid to
us by a fully registered and traceable US company that we used to
do the marketing for. On the back of our marketing they would
increase their subscription base and we would earn a monthly
commission on all the subscriptions. The company was established
for 22 years and turning over more than $1 billion USD before we
came along - so in otherwords - a VERY VERY Reputable company.
All the subscriptions taken by that company were on debit or
credit cards. No problem there.
So - this particular month - January 2001 to be exact - I shipped
$41,500 to my UK Lloyds account from my PayPal account. Then I
jumped on a plane from Seattle as I was coming home to see my old
dad for a few weeks. I took off on the Friday evening (Seattle
time) and So I fully expected the dough to be in my UK account by
the following Tuesday in the UK.
Tuesday came and went and no money.
Much calling to the bank ensued who informed me that they had
simply not had the money.
So eventually I started getting on to PayPal corporate which was
located in Nebraska at that time.
Thats where the fun started! I never once got to speak to the same
person - nobody wrote anything down on their system and everyone
just passed the buck to someone else stating that it was someone
I won't bore you with the details - but let me tell you how I got
my money EIGHT MONTHS LATER!
I began to hear online that many other people had suffered a
similar fate at the hands of Pa(y)pal and so a "Class Action" was
brought by those people (109 of them to be exact) against PayPal.
So - I wrote to the CEO of PayPal and made it clear to him that if
I wasn't in receipt of my money in 14 days then I would b joining
the class action.
Heard nothing so then an attorney friend of mine came up with a
bright idea. He tabled the idea of creating a Subpoaena against
the CEO and board members of PayPal dragging him into court under
FEDERAL laws for Fraud and misappropriation of funds and about 6
or 7 other choice offences.
We then got another attorney as a second, went to the court house
in district 57 of California (San Bernadino) where I lived and the
Judge granted the Subpoena because he himself had a Pa(y)pal
account and was frankly shocked.
So - with Subpoena in hand allowing us to drag the CEO out of his
office and into a FEDERAL court in Nebraska we got on a plane to
We (that is meself and the two attorneys) then rocked up in
PayPals reception and I trotted up to the reception girl and said
the following. (I had it written down)
"I have come to collect my $41,500 in cash from your CEO,
if I am not in receipt of those funds in less than 10 minutes I
will be executing this Subpoena against your CEO and all board
members of this company as failure to comply with this Subpoena
to attend court now will result in formal arrest and arraignment
by Federal Marshalls who will be called to forcibly and with all
necessary force extract your CEO and any board members from this
building and and all other PayPal offices in the contiguous
United States for presentation into federal court to answer
these charges, as a pretensor to any bail application Judge E.
B. Marickels in the California District Court (57) has already
set bail at $10,000,000 per person ... I suggest you get your
CEO down here NOW!"
After I had picked her jaw up off the floor (and she was visibly
trembling by this point) she got on the phone and after less than
1 minute the "P.A" to the CEO came down.
I was furious. I repeated my statement and added that having been
notified of and shown the Subpoena she would be a culpable
accessory to the fact if she didn't ensure he was down here with
my money in less than 8 minutes.
3 minutes went by and she was back - she was holding a cheque for
$41K made out to me ... but my Attorney stepped in and said - "no
- thats no good - we could walk outta here and you could stop that
cheque - go and get a Cashiers Cheque or a bankers draft and you
need to do that in less than 5 minutes or we will be calling
with less than a minute to spare - she rocks up with a cashiers
Not one cent of interest on my $41,500 which they had for 8
months, not a word of apology ... no explanation - NOTHING!!!
I then got in touch with the law firm bringing the class action
explaining what we had done to get my money refunded to me - I
heard that some three weeks later 8 lawyers carrying Federal
Subpoena's on behalf of 126 appellants entered the offices of
PayPal to recover more than $1.7 million dollars of funds that
"Pa(y)pal" had "seized" - It turns out Pa(y)pal issued cashiers
cheques in less than ten minutes.
If paypal took $10K off 10,000 people this way then in my book
thats nice work if you can get it!
I kept pestering the CEO by way of letter for an explanation and
eventually by way of a complete shock I got one!
The letter said ... "funds were rightfully and lawfully witheld by
our fraud prevention team as a security against possible
chargebacks from the persons who had made the original payments".
This was bollocks ... we never took credit or debit card payments.
Our funds were paid directly into our bank account from the
company we were contracted to work for (The very respectable one)
and then we transferred funds from our bank in the US directly to
the PayPal account. So who were these people we were allegedly
taking money from? The company actually taking the payments had
been going 22 years and had been using their credit card merchant
account for many years and had less than 2% chargeback rate on
their merchant account - an acceptable level is 6% in the
9 months after I got my money back - Pa(y)pal's offices in
Nebraska shut without notice to anyone and I don't know where they
are based now as they don't publish it. Their office in London is
a mail forwarding company - if you ring them you end up speaking
to someone in the Philippines.
They are without doubt the biggest bunch of crooked fuckers on the