We currently have an ongoing inquiry relating to PayPal in Canada. We've been contacted by several individuals and companies who have had money retained for very extended periods exceeding the 180 days which is the maximum PayPal say they retain money, in many cases, they have kept adding another 180 days and it seems in some cases they have managed to get up to around five years! in all of the cases brought to our attention, PayPal cannot (or will not) provide any solid grounds as to why they are retaining the funds when they cannot possibly be any risk of loss or a charge back due to the amount of time which has passed.
At the current time we are gathering details on behalf of a leading Ontario law firm because in the PayPal terms and conditions they agree that in the event a dispute cannot be resolved they will agree to alternative dispute resolution ("ADR") . Below are the details from their terms and conditions we have several clients who have contacted us since they have seen the details here to say that PayPal will not submit to arbitration in spite of them making multiple requests and we have been sent documentary evidence where it is clear this has been requested through the messaging system but at no point did PayPal even acknowledge this request for ADR. The law firm we are working with have asked us to gather further information with a view to taking specific steps, because it is clear based on what they have told us that PayPal have breached their own terms and conditions by being either deliberately obstructive or incompetent. As mentioned above their terms and conditions related to this issue, appear below. If you've experienced problems with PayPal of a similar nature, please get in touch because the more people we can add to the list of people with this type of issue the more likely it will be that the law firm will be able to seek a suitable resolution.
6. Disputes
If a dispute arises between you and PayPal, our goal is to learn about and address your concerns. If we are unable to address your concerns to your satisfaction, we will seek to provide you with a neutral and cost-effective means of resolving the dispute quickly. Disputes between you and PayPal regarding the Service may be reported to Customer Service. Please click here for Customer Service.
A party requesting relief may elect to resolve a claim (excluding claims for injunctive or other equitable relief) in a cost-effective manner through binding non-appearance-based arbitration if the total amount of the award sought is less than $10,000.00 CAD.
A party electing arbitration will do so through an established alternative dispute resolution ("ADR") provider mutually agreed upon by the parties. The ADR provider and the parties must comply with the following rules: (i) the arbitration shall be conducted by telephone, online and/or be solely based on written submissions, with the specific manner to be chosen by the party initiating the arbitration; (ii) the arbitration shall not involve any personal appearance by the parties or witnesses unless otherwise mutually agreed by the parties; and (iii) any judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction.
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UPDATE: Several individuals and businesses have contacted us who are also having problems with PayPal refusing to abide by their own terms and conditions by enabling their clients to use ADR (Alternative Dispute Resolution) one client confirmed he had written to the address below, using registered mail and confirmed receipt of the letter by PayPal but with zero response since it was sent several months ago which clearly indicates that they are simply ignoring their responsibilities and breaching their own terms and conditions by failing to submit to ADR (Alternative Dispute Resolution). He had asked us which address he should use for correspondence before contacting them, we confirmed that we had checked their terms and conditions, and it states as below, as a result he wrote to them at that address, and has provided us with copies of the documentation confirming delivery of the letter.
1.8 Notices to PayPal. Except as otherwise stated below in Section 12 (Resolution Procedures for Unauthorized Transactions and Processing Errors) and Section 14 (Disputes with PayPal), notice to PayPal must be sent by postal mail to: PayPal Canada, Attention: Legal Department, 661 University Avenue, Suite 506, Toronto, Ontario M5G 1M1, Canada.
It is quite clear this is probably a pattern of conduct especially as one particular client has such a extensive fire where he has been trying to recover funds from PayPal since 2018!
If you have suffered a similar problem you should automatically corresponds using registered mail so you can prove that PayPal have received the letter, then come back to us with the details and the tracking number, so we can add it to the file which will soon be made widely available to to several investigative journalists. Anyone who would like further information regarding this ongoing issue is free to contact us.