What Law is this (Paypal query)

What Law is this (Paypal query)

Author
Discussion

duckwhistle

Original Poster:

276 posts

150 months

Wednesday 20th September 2017
quotequote all
Having used PP for a while, buying only, They now inform me that I can no longer send any more of my own money via their system unless I allow them full access to my Bank account. This is apparently a 'Legal' requirement. I am curious as to which Law covers this. Anyone here know the answer ?
Apparently come the anniversary of my signup this limit resets back to Zero like some weird financial odometer.

GCH

3,984 posts

201 months

Wednesday 20th September 2017
quotequote all
Define 'full access'?

I have my bank account(s) set to be able to withdraw from paypal to them, but no way in hell would I have it so money can be pulled from my bank accounts to paypal.


Perhaps authorise it to allow access to fulfill their checks, and then edit/remove it accordingly? I seem to remember I did something vaguely like this years ago.

InitialDave

11,856 posts

118 months

Wednesday 20th September 2017
quotequote all
Some kind of money laundering thing perhaps?

PurpleMoonlight

22,362 posts

156 months

Wednesday 20th September 2017
quotequote all
Their law rather than the Law more like.

Cold

15,207 posts

89 months

Wednesday 20th September 2017
quotequote all
Are you sure that you're not just responding to a scam email?

tony wright

1,004 posts

249 months

Wednesday 20th September 2017
quotequote all
Recieved a PayPal scam this morning, "unusual activity" etc. Smelt fishy straight away, but still made me double check my account. This was obviously not through their click here button though (wkers that they are).

InitialDave

11,856 posts

118 months

Wednesday 20th September 2017
quotequote all
PayPal do have a thing where once you hit a certain amount of cashflow, they want to check up on you, I had it when selling a bunch of stuff on Ebay. I don't recall it being in reference to a law, though.

duckwhistle

Original Poster:

276 posts

150 months

Wednesday 20th September 2017
quotequote all
Thanks for the replies guys. It was a genuine message on the logged in account. Their terms and conditions are unacceptable. They do not answer emails, turnover not an issue as I do not sell nor will I ever. As for money laundering, this was petty cash stuff, piddling little amounts for vintage bits & pieces. The account is now closed, I do not trust these people who will not answer a simple enquiry and invent 'Laws' to serve their own ends.

codenamecueball

529 posts

88 months

Wednesday 20th September 2017
quotequote all
Is this the "attach your account to paypal to verify you're a real human being" thing? Means they can verify you've got an actual account and aren't a fake person using PayPal to launder money or shift it around. Only becomes a requirement after you've moved a few thousand around. It's not "full access", it's entering a verification code.

cootuk

918 posts

122 months

Thursday 21st September 2017
quotequote all
All they do is ask you for your bank account details, then they take a small amount £1 with the transaction having a validation code on your account. You enter this code into paypal and your account is unlocked and the £1 refunded.
As a UK bank account has been verified already, this is an easy way for paypal to make sure their account isn't from a hijacked bank account and being used to launder money.

Their game, their rules. Don't sweat it, it's nothing nefarious.

768

13,601 posts

95 months

Thursday 21st September 2017
quotequote all
I got this after spending about £2k with them.

Just stopped using them.

duckwhistle

Original Poster:

276 posts

150 months

Thursday 21st September 2017
quotequote all
Despite all the helpful contributions, I have yet to identify the 'Law' which paypal rely. Nor can they tell me. Thanks again for your interest but please consider this closed now.

Mr2Mike

20,143 posts

254 months

Thursday 21st September 2017
quotequote all
cootuk said:
Their game, their rules. Don't sweat it, it's nothing nefarious.
Apart from giving a company well known for underhand tactics and dire customer service direct access to your bank account...

General Fluff

478 posts

136 months

Thursday 21st September 2017
quotequote all
Mr2Mike said:
cootuk said:
Their game, their rules. Don't sweat it, it's nothing nefarious.
Apart from giving a company well known for underhand tactics and dire customer service direct access to your bank account...
Yes the internet is awash with stories of people being caught out by this cunning ruse.

Oh wait.....

Slurms

1,252 posts

203 months

Thursday 21st September 2017
quotequote all
duckwhistle said:
Despite all the helpful contributions, I have yet to identify the 'Law' which paypal rely. Nor can they tell me. Thanks again for your interest but please consider this closed now.
It'll be the money laundering regulations.

https://www.gov.uk/topic/business-tax/money-launde...


anonymous-user

53 months

Thursday 21st September 2017
quotequote all
That is the answer: close your account

PP t&c's are skewed very much in it's favour

If you find them unacceptable, don't use the service

Don't lose any sleep about it. No one at pp will

Rude-boy

22,227 posts

232 months

Thursday 21st September 2017
quotequote all
Slurms said:
duckwhistle said:
Despite all the helpful contributions, I have yet to identify the 'Law' which paypal rely. Nor can they tell me. Thanks again for your interest but please consider this closed now.
It'll be the money laundering regulations.

https://www.gov.uk/topic/business-tax/money-launde...
This.

What i don't understand though is why you would not set up a separate bank account for use with people like PayPal? I have my 'normal' account but also have a bills account where any DD's or anything that i do not have 100% real time control over comes out of. I would not risk linking that account to someone as well known for their jiggery pokery as PayPal so if I ever set up another account with them it will be linked to a bank account that is only used for PayPal. Everyone is a winner as everyone gets what they want.

Angrybiker

557 posts

89 months

Thursday 21st September 2017
quotequote all
Rude-boy said:
Slurms said:
duckwhistle said:
Despite all the helpful contributions, I have yet to identify the 'Law' which paypal rely. Nor can they tell me. Thanks again for your interest but please consider this closed now.
It'll be the money laundering regulations.

https://www.gov.uk/topic/business-tax/money-launde...
This.

What i don't understand though is why you would not set up a separate bank account for use with people like PayPal? I have my 'normal' account but also have a bills account where any DD's or anything that i do not have 100% real time control over comes out of. I would not risk linking that account to someone as well known for their jiggery pokery as PayPal so if I ever set up another account with them it will be linked to a bank account that is only used for PayPal. Everyone is a winner as everyone gets what they want.
<---- work in banking. Bit of an over-reaction here. They need to connect to a bank account so that when you instruct them to pay someone then they can instruct your bank to give them the necessary funds; and when someone sends you money they know where to pass it on to. They don't and never have 'access' to your bank account and they can't just take money from it willy nilly. If they ever could and did then:
a) there would be mass panic and nobody would use them; and
b) if you were to ever spot such a transaction you would report it to your bank and they would:
i) Get the money back for you and alert the authorities
ii) Blacklist PP and start flagging to you every time there's a transaction with them to check that it's real (via their real-time transaction monitoring systems)

As mentioned above, this is for money laundering regulations, identity theft etc.

Rude-boy

22,227 posts

232 months

Thursday 21st September 2017
quotequote all
Angrybiker said:
<---- work in banking.

As mentioned above, this is for money laundering regulations, identity theft etc.
Work as a solicitor so you can imagine how much joy and fun i have had over the last 6 months or so dealing with all of the above.

Yes i know that my approach is perhaps ott but it does mean that i have 100% control and 0% worry about anyone or anything rogue getting into the system.

When i was about 22 i had my card skimmed and a fraudulent transaction for about £300 was put through on my account. Of course it would have to have been a Friday night 200+ miles from home, empty fuel tank, with no cash and when i found out that i only had about £5.70 to my name. As it happened i have my Credit Card and so it was more of a ball ache than a disaster and the bank were great about sorting it all out but the one thing i knew was that i didn't have to worry about the mortgage payment that was due out on the Monday as that was in a totally separate account which has no card.

Angrybiker

557 posts

89 months

Thursday 21st September 2017
quotequote all
Rude-boy said:
Angrybiker said:
<---- work in banking.

As mentioned above, this is for money laundering regulations, identity theft etc.
Work as a solicitor so you can imagine how much joy and fun i have had over the last 6 months or so dealing with all of the above.

Yes i know that my approach is perhaps ott but it does mean that i have 100% control and 0% worry about anyone or anything rogue getting into the system.

When i was about 22 i had my card skimmed and a fraudulent transaction for about £300 was put through on my account. Of course it would have to have been a Friday night 200+ miles from home, empty fuel tank, with no cash and when i found out that i only had about £5.70 to my name. As it happened i have my Credit Card and so it was more of a ball ache than a disaster and the bank were great about sorting it all out but the one thing i knew was that i didn't have to worry about the mortgage payment that was due out on the Monday as that was in a totally separate account which has no card.
Yes you have a very secure setup there. (my over-react statement was more for people running away screaming from PP). Personally I don't have a second account like that but it's not a bad idea and if I was skimmed I'd be tempted to do the same.