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Maverick
Maverick, Attorney
Category: Legal
Satisfied Customers: 5767
Experience:  20 years experience as a civil trial and appellate lawyer
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I started a business last October and by December I was

Customer Question

I started a business last October and by December I was pretty much shut down and out of business due to the product for which I was selling. The hoover boards that I sold had all of the certifications but because so many other people without them were selling them and they caught on fire the federal customs dept. deemed ALL to be dangerous in shipping and made it hard to get them and to ship them to our customers at Christmas time, so I pretty much had to wait 180 days according to paypal to get the funds released to make sure no one wanted their money back. However, after 180 days PLUS, the company is STILL not wanting to release my funds to my bank account and for NO APPARENT reason other than giving me the run around about someone from another department will be contacting me and there is no reason for them to be holding my money. Is there anything I can do to help speed up this process and get them to release my funds? Can you please help me with this or help me to write them a letter from an attorney showing that we are serious and mean business. Thank you, *****
Submitted: 5 months ago.
Category: Legal
Expert:  Maverick replied 5 months ago.

Welcome to Just Answer (“JA”)! My name is Maverick.

Please note: (1) If you want legal advice, you must consult with a local attorney in person before acting or deciding not to act based on any information given here; and (2) I answer most questions within the hour. However, if I am not signed on, please allow up to 24 hours. By continuing, you confirm that you understand and agree to these terms and JA’s site disclaimers presented to you earlier.

1. For clarity what is reason for the delay that Paypal is telling you today?

2. What State are you located in?

3. Are you saying that Paypal is not releasing money that your customers paid you for buying the hoover boards?

Customer: replied 5 months ago.
1) there is no CLEAR reason for the delay
2) I live in Georgia
3) and yes that IS correct.. Customers who bought and were satisfied and the time limit PayPal set was 180 days to hold money to make sure no one wanted their money back for which it has exceeded!
Customer: replied 5 months ago.
Now originally speaking to PayPal in December the wait time was 90 days then exceeded to 180 and now I do not know their reasoning behind the delay.. Other than it has been a fiasco trying to get the money owed to me!
Expert:  Maverick replied 5 months ago.

Okay, thanks for the additional info. Let me look into this a bit and I will be back.

Customer: replied 5 months ago.
Ok thank you so much!
Expert:  Maverick replied 5 months ago.

William:

Take a look at Chapters 13 and 14 of Paypal's terms and conditions page here.

Look at 13.2 which states in relevant part:

  • Open a Dispute within 180 Days of the date you sent the payment, then follow the online dispute resolution process described below under Dispute Resolution. For Pay After Delivery transactions you must open your Dispute within 180 Days of the date of your transaction.

So, you can see where Paypal is getting the 180 days time frame from and why. It is trying to make sure that before it releases the funds to you, it waits the full time period [which can even exceed the 180 days from the actual transaction date if payment was made sometime later].

Now look at 14.1 and 14.3; if you feel that you are not able to get a resolution under 14.1 then you will need to initiate an arbitration to be conducted by the American Arbitration Association ("AAA"). See this link. Look at the "Services" tab.

1. Is there anything I can do to help speed up this process and get them to release my funds?

Make contact to them under 14.1 and ask how much longer should you wait before submitting this to AAA. The reason this may add pressure is because the rules state:

Payment of all filing, administration, and arbitrator fees will be governed by the AAA's rules, unless otherwise stated in this Agreement to Arbitrate. If the value of the relief sought is $10,000 or less, at your request, PayPal will pay all filling, administration, and arbitrator fees associated with the arbitration.

2. Can you please help me with this or help me to write them a letter from an attorney showing that we are serious and mean business.

You do not need an attorney letter. If the steps above do not work, then you need to send them a notice. See these rules:

A party who intends to seek arbitration must first send to the other, by certified mail, a completed form Notice of Dispute (“Notice”). You may download a form Notice here. The Notice to PayPal should be sent to PayPal, Inc., Attn: Litigation Department, Re: Notice of Dispute, 2211 North First Street, San Jose, CA 95131... All information called for in the Notice must be provided including a description of the nature and basis of the claims the party is asserting and the relief sought.

If you and PayPal are unable to resolve the claims described in the Notice within 30 days after the Notice is sent, you or PayPal may initiate arbitration proceedings. A form for initiating arbitration proceedings is available on the AAA's website at www.adr.org.

Customer: replied 5 months ago.
Thank you for your help. I will take these steps forward. Have a good day!
Expert:  Maverick replied 5 months ago.

Your welcome.

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