*Paypal operates like a bank but is not subject to any regulation as banks are.
*Paypal is not FDIC insured.
*Paypal uses deposits to make loans and collect interest, but does not pay interest on these deposits.
*Paypal holds deposited funds with little or no notice, leaving depositors with no access to their money for 21 days and in some cases several months.
*Paypal reaches into linked bank accounts and credit cards to hold funds if they deem there are insufficient funds in the Paypal account. This cannot be legal and should be investigated and regulated. This money belongs to depositors, not Paypal.
*Twenty one day holds on funds (and sometimes longer) is a terrible hardship on small merchants trying to struggle through the recession.
*In addition, one seller wrote that ten percent of his earnings are held for 6 months by Paypal! It's his money. How can this be legal?
*Sellers have no appeal process regarding the holds on their money. It often happens so rapidly they cannot prevent it./safeguard their own money.
* Paypal fees can exceed ten percent of transactions.
*There is no exact competition, Paypal is a virtual monopoly.
These are unfair and unethical business practices. Banks are regulated. Paypal operates as a global bank. The FTC must investigate Paypal and must make Paypal subject to banking regulations, since it operates as a bank. Oversight is required.
*Paypal is not FDIC insured.
*Paypal uses deposits to make loans and collect interest, but does not pay interest on these deposits.
*Paypal holds deposited funds with little or no notice, leaving depositors with no access to their money for 21 days and in some cases several months.
*Paypal reaches into linked bank accounts and credit cards to hold funds if they deem there are insufficient funds in the Paypal account. This cannot be legal and should be investigated and regulated. This money belongs to depositors, not Paypal.
*Twenty one day holds on funds (and sometimes longer) is a terrible hardship on small merchants trying to struggle through the recession.
*In addition, one seller wrote that ten percent of his earnings are held for 6 months by Paypal! It's his money. How can this be legal?
*Sellers have no appeal process regarding the holds on their money. It often happens so rapidly they cannot prevent it./safeguard their own money.
* Paypal fees can exceed ten percent of transactions.
*There is no exact competition, Paypal is a virtual monopoly.
These are unfair and unethical business practices. Banks are regulated. Paypal operates as a global bank. The FTC must investigate Paypal and must make Paypal subject to banking regulations, since it operates as a bank. Oversight is required.
To:
Regulate PayPal
Sincerely,
[Your name]
[Your name]
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