4 ms·

No, you cannot. Federal law sets out how all banking must be done. There is always reciprocity. Since PayPal isn't regulated as a bank there is no directly appl

by micmil 7y ago

No, you cannot. Federal law sets out how all banking must be done. There is always reciprocity. Since PayPal isn't regulated as a bank there is no directly applicable federal law. Instead, it's regulated on a state-by-state basis and the majority of the time you'd be hard pressed to figure out exactly who within your state you would have to file a complaint with. PayPal wants it both ways. It wants to act like a bank when it's good for them, but avoid all of the regulations. It's the worst of both worlds for the customer. Anecdotally speaking, I know multiple people that have had funds frozen by PayPal after months or years of use. I know exactly nobody that has had a bank account frozen.

okmokmz 7y ago
Yes, you can. Not all of these may be great examples, but the fact that this many were on the first page of a google search makes it pretty clear that this issue isn't isolated to paypal https://www.reddit.com/r/legaladvice/comments/al27fr/bank_account_frozen_this_morning_bank_is_saying/ https://www.reddit.com/r/legaladvice/comments/al27fr/bank_ac... https://www.reddit.com/r/legaladvice/comments/basfne/online_bank_suddenly_freezes_my_wifes_checking/ https://www.reddit.com/r/legaladvice/comments/basfne/online_... https://www.reddit.com/r/personalfinance/comments/54zjq2/my_bank_account_has_been_frozen_and_rent_bills/ https://www.reddit.com/r/personalfinance/comments/54zjq2/my_... https://www.reddit.com/r/Bitcoin/comments/agpi87/bank_permanently_closed_my_account_why_i_believe/ https://www.reddit.com/r/Bitcoin/comments/agpi87/bank_perman... https://www.reddit.com/r/legaladvice/comments/71kk4p/chase_bank_is_holding_onto_147k_of_my_money_and/ https://www.reddit.com/r/legaladvice/comments/71kk4p/chase_b... https://www.reddit.com/r/povertyfinance/comments/8ad73p/anyone_had_the_bank_close_their_checking_account/ https://www.reddit.com/r/povertyfinance/comments/8ad73p/anyo... https://www.reddit.com/r/personalfinance/comments/9k7t1q/another_chase_closed_my_account_thread/ https://www.reddit.com/r/personalfinance/comments/9k7t1q/ano... https://www.reddit.com/r/personalfinance/comments/4sbqv4/my_bank_suddenly_decided_to_close_my_account/ https://www.reddit.com/r/personalfinance/comments/4sbqv4/my_... https://www.reddit.com/r/personalfinance/comments/9ty3fq/bank_of_america_closed_my_account_incorrectly/ https://www.reddit.com/r/personalfinance/comments/9ty3fq/ban... https://www.reddit.com/r/personalfinance/comments/7n1hhl/bank_involuntarily_closed_my_account_because_of_a/ https://www.reddit.com/r/personalfinance/comments/7n1hhl/ban... https://www.reddit.com/r/legaladvice/comments/ag9br2/suntrust_bank_closed_my_account_with_all_my_money/ https://www.reddit.com/r/legaladvice/comments/ag9br2/suntrus... https://www.reddit.com/r/legaladvice/comments/3zct1m/my_brother_had_his_bank_account_frozen_utah/ https://www.reddit.com/r/legaladvice/comments/3zct1m/my_brot... https://www.reddit.com/r/PersonalFinanceCanada/comments/8wgoe6/bank_account_under_investigation_frozen_funds/ https://www.reddit.com/r/PersonalFinanceCanada/comments/8wgo... https://www.reddit.com/r/personalfinance/comments/acr0ig/ally_bank_let_me_create_a_savings_account_froze/ https://www.reddit.com/r/personalfinance/comments/acr0ig/all... https://www.reddit.com/r/PersonalFinanceCanada/comments/ajrjlj/cra_froze_my_bank_account_today/ https://www.reddit.com/r/PersonalFinanceCanada/comments/ajrj... https://www.reddit.com/r/personalfinance/comments/3mxc2a/credit_card_collection_has_frozen_my_checking/ https://www.reddit.com/r/personalfinance/comments/3mxc2a/cre... https://www.reddit.com/r/legaladvice/comments/8rb4dq/my_bank_account_has_been_frozen_because_of_my/ https://www.reddit.com/r/legaladvice/comments/8rb4dq/my_bank... https://www.reddit.com/r/personalfinance/comments/92mpg8/bank_closed_my_account_without_telling_me_said/ https://www.reddit.com/r/personalfinance/comments/92mpg8/ban... https://www.reddit.com/r/personalfinance/comments/7un9nz/bank_closed_my_account_with_no_notice/ https://www.reddit.com/r/personalfinance/comments/7un9nz/ban...
- micmil 7y ago
  Notice how almost all of those cite "suspected fraud"? The bank will always be paranoid about fraud and if you do anything to freak them out, you're done. They're worse than cats when it comes to flipping out and skittering away. In the cases where resolutions are cited the customer receives their money back. This is due to federal laws regarding banking. Contrast this with PayPal who needs no reason to freeze your funds and will hold them as long as they damn well please please federal banking law (for the most part) does not apply to them. This even though they're regulated as a bank nearly everywhere else in the world. But then again this is the US and when do we ever do anything that makes sense?
ru999gol 7y ago
I don't really believe this myself, but HN just loves it if you defend corporations doing evil shit. They are all gullible fools on here and I just had some fun manipulating them. I too, wish governments would get their shit together and regulate them. The corrupt governments (especially US) of today wouldn't even regulate regular banks, quite the opposite.

by micmil 7y ago

okmokmz 7y ago

Yes, you can. Not all of these may be great examples, but the fact that this many were on the first page of a google search makes it pretty clear that this issue isn't isolated to paypal https://www.reddit.com/r/legaladvice/comments/al27fr/bank_account_frozen_this_morning_bank_is_saying/ https://www.reddit.com/r/legaladvice/comments/al27fr/bank_ac... https://www.reddit.com/r/legaladvice/comments/basfne/online_bank_suddenly_freezes_my_wifes_checking/ https://www.reddit.com/r/legaladvice/comments/basfne/online_... https://www.reddit.com/r/personalfinance/comments/54zjq2/my_bank_account_has_been_frozen_and_rent_bills/ https://www.reddit.com/r/personalfinance/comments/54zjq2/my_... https://www.reddit.com/r/Bitcoin/comments/agpi87/bank_permanently_closed_my_account_why_i_believe/ https://www.reddit.com/r/Bitcoin/comments/agpi87/bank_perman... https://www.reddit.com/r/legaladvice/comments/71kk4p/chase_bank_is_holding_onto_147k_of_my_money_and/ https://www.reddit.com/r/legaladvice/comments/71kk4p/chase_b... https://www.reddit.com/r/povertyfinance/comments/8ad73p/anyone_had_the_bank_close_their_checking_account/ https://www.reddit.com/r/povertyfinance/comments/8ad73p/anyo... https://www.reddit.com/r/personalfinance/comments/9k7t1q/another_chase_closed_my_account_thread/ https://www.reddit.com/r/personalfinance/comments/9k7t1q/ano... https://www.reddit.com/r/personalfinance/comments/4sbqv4/my_bank_suddenly_decided_to_close_my_account/ https://www.reddit.com/r/personalfinance/comments/4sbqv4/my_... https://www.reddit.com/r/personalfinance/comments/9ty3fq/bank_of_america_closed_my_account_incorrectly/ https://www.reddit.com/r/personalfinance/comments/9ty3fq/ban... https://www.reddit.com/r/personalfinance/comments/7n1hhl/bank_involuntarily_closed_my_account_because_of_a/ https://www.reddit.com/r/personalfinance/comments/7n1hhl/ban... https://www.reddit.com/r/legaladvice/comments/ag9br2/suntrust_bank_closed_my_account_with_all_my_money/ https://www.reddit.com/r/legaladvice/comments/ag9br2/suntrus... https://www.reddit.com/r/legaladvice/comments/3zct1m/my_brother_had_his_bank_account_frozen_utah/ https://www.reddit.com/r/legaladvice/comments/3zct1m/my_brot... https://www.reddit.com/r/PersonalFinanceCanada/comments/8wgoe6/bank_account_under_investigation_frozen_funds/ https://www.reddit.com/r/PersonalFinanceCanada/comments/8wgo... https://www.reddit.com/r/personalfinance/comments/acr0ig/ally_bank_let_me_create_a_savings_account_froze/ https://www.reddit.com/r/personalfinance/comments/acr0ig/all... https://www.reddit.com/r/PersonalFinanceCanada/comments/ajrjlj/cra_froze_my_bank_account_today/ https://www.reddit.com/r/PersonalFinanceCanada/comments/ajrj... https://www.reddit.com/r/personalfinance/comments/3mxc2a/credit_card_collection_has_frozen_my_checking/ https://www.reddit.com/r/personalfinance/comments/3mxc2a/cre... https://www.reddit.com/r/legaladvice/comments/8rb4dq/my_bank_account_has_been_frozen_because_of_my/ https://www.reddit.com/r/legaladvice/comments/8rb4dq/my_bank... https://www.reddit.com/r/personalfinance/comments/92mpg8/bank_closed_my_account_without_telling_me_said/ https://www.reddit.com/r/personalfinance/comments/92mpg8/ban... https://www.reddit.com/r/personalfinance/comments/7un9nz/bank_closed_my_account_with_no_notice/ https://www.reddit.com/r/personalfinance/comments/7un9nz/ban...

micmil 7y ago
Notice how almost all of those cite "suspected fraud"? The bank will always be paranoid about fraud and if you do anything to freak them out, you're done. They're worse than cats when it comes to flipping out and skittering away. In the cases where resolutions are cited the customer receives their money back. This is due to federal laws regarding banking. Contrast this with PayPal who needs no reason to freeze your funds and will hold them as long as they damn well please please federal banking law (for the most part) does not apply to them. This even though they're regulated as a bank nearly everywhere else in the world. But then again this is the US and when do we ever do anything that makes sense?

ru999gol 7y ago

I don't really believe this myself, but HN just loves it if you defend corporations doing evil shit. They are all gullible fools on here and I just had some fun manipulating them. I too, wish governments would get their shit together and regulate them. The corrupt governments (especially US) of today wouldn't even regulate regular banks, quite the opposite.