Paypal dramas

**mic-d** · 19th September 2008, 07:03 PM

I recently received this email from PayPal:

PayPal as a regulated financial services company is required under law to
assess its customers against certain lists of individuals and entities
which have had sanctions imposed against them. PayPal as a financial
institution is required to comply with these regulations in multiple
jurisdictions where we do business.

Where a potential name match is identified, PayPal's policy is to lock the
account and request further identifying documentation. The decision to lock
your account has been taken solely by PayPal in line with its compliance
policy in regards to the legislation covering financial sanctions.

To regain access to your account, provide the following documentation
within the next seven days:

• A copy of a government-issued photograph identification (i.e. passport,
driver's license) that provides date of birth
• A copy of a utility bill verifying your address

I've used PayPal a few times and there was never any problems. Initially I assumed it was a shonky email trying to get personal information, but when I logged in to my account, sure enough it was locked (luckily I keep NO funds in it). What the?

I called PayPal and spoke to a very polite Septic, who said my name came up as a sanctioned entity and I must validate my identity.
Googling some keywords from the email I found a bunch of others who have had similar problems. It all originates in a body called OFAC (office of foreign assets control). You can find a lovely description here:
http://www.treas.gov/offices/enforcement/ofac/
When I searched for OFAC, I found this site where you can search the list.
http://www.instantofac.com/search.php

Sure enough my name was there, different middle initial and the guy lives in Panama.

Now it seems to me that if Jack Smith came up on the list, each and every US company that is compliant with OFAC must proceed down the same course with every client of that name.

I don't care to comment on this but you can guess my feelings and I will NOT be dealing with PayPal any longer.

Cheers
Michael

**Ron Dunn** · 19th September 2008, 07:12 PM

Ring 'em up again, and threaten to put a bomb under the b*stards!!

I'm sick of this fake terrorist crap. The "security" industry has made billions out of jerking us around over the last few years ... they must really be dreading a change of government at the next US election.

**TermiMonster** · 19th September 2008, 09:10 PM

I don't use paypal....not for that reason, but I'll add it to my list.
TM

**watson** · 19th September 2008, 09:12 PM

I'm just wondering if this is a scam to gain access to your identity by someone other than PayPal???

**mic-d** · 19th September 2008, 09:16 PM

Originally Posted by watson

I'm just wondering if this is a scam to gain access to your identity by someone other than PayPal???

Read the post Noel

You need a good sleep?

Cheers
Michael

**watson** · 19th September 2008, 09:20 PM

Yep......ZZZZZZZ!! Sorry...just scanning.

**Sebastiaan56** · 20th September 2008, 07:47 AM

I have also had problems, mainly with getting their stupid system to recognise my credit card number as valid. Works on every swipe terminal Ive ever taken it to but they refuse to verify it and hence no PayPal for me. Well they can shove it, and twist it sideways

I also agree about the bloated security industry, the point is not to control terrorism its to make more profits from ever more outrageous fear mongering, I bet all the heads of Bear Stearns, Fanny Mae etc have verified credit cards. Mo Fo's the lot of em

**Honorary Bloke** · 20th September 2008, 07:57 AM

Originally Posted by mic-d

I don't care to comment on this but you can guess my feelings and I will NOT be dealing with PayPal any longer.

Cheers
Michael

Mic, I'm sympathetic, but you are shooting the messenger. Paypal didn't do it, the US gov't did. And others who said another reason not to use Paypal didn't read the entire post either.

I admit it's stupid, but it's government stupid, not Paypal stupid.

**mic-d** · 20th September 2008, 09:14 AM

Originally Posted by Honorary Bloke

Mic, I'm sympathetic, but you are shooting the messenger. Paypal didn't do it, the US gov't did. And others who said another reason not to use Paypal didn't read the entire post either.

I admit it's stupid, but it's government stupid, not Paypal stupid.

I thought it was a fundamental fact that the US government is stupid

. You have to leave some things out, otherwise life would be like, "Mornin Honorary Bloke, the sky is blue today".

Seriously, you are right, the company has been backed into a corner.

Cheers
Michael

**bsrlee** · 20th September 2008, 10:30 PM

Interesting, as PayPal claim to be licensed in Australia as an Australian financial institution, so the US regulations do not apply to Australians.

But of course, by applying this across the board inappropriately they can make a fair bit of money from people by freezing their accounts and/or reversing payments already made - its just a variation on the basic PayPal scam of hanging onto your money for as long as possible & seems to be a common one in the US banking industry - and also here now we are employing dud US bank managers at outrageous salaries.

I think Mic is doing the right thing when dealing with PayPal - keep them as far as possible from your money.

**mic-d** · 20th September 2008, 11:40 PM

Just an update. My account was unlocked today, a day after they received the info and I must admit I was surprised at the speed. And this evening they sent me a link to a survey for people in this situation. They've got this down to a slick process, my guess is they deal with quite a large number of similar cases.

Still doubt I will use PayPal again.

**mic-d** · 20th September 2008, 11:41 PM

Originally Posted by bsrlee

Interesting, as PayPal claim to be licensed in Australia as an Australian financial institution, so the US regulations do not apply to Australians.

I don't get this either

but I would like to tell GWB and his team to suck on my big one.

Cheers
Michael

**Vernonv** · 21st September 2008, 09:19 AM

Hi All,
I think you'll find that Australian banks also have a list (supplied by the Australian Government - probably compiled with the help of foreign governments) that they need to check peoples names/details against. However as you need the 100 point verification to open an account in Australia, they basically already have the required identification to check against the said list.

Having said that I'm still not a big fan of Paypal (and their close association eBay).

**malb** · 21st September 2008, 03:03 PM

Never had any hassle with PP but I only use them to pay for stuff bought through foreign ebay site.
All I needed to set up an account with them was an email address, no 100 points bulldust.

**mic-d** · 21st September 2008, 06:03 PM

Originally Posted by malb

Never had any hassle with PP but I only use them to pay for stuff bought through foreign ebay site.
All I needed to set up an account with them was an email address, no 100 points bulldust.

Same story here, until the email. And if your name turns up on the list, it'll be the same story for you.

Cheers
Michael

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