PayPal, next Enron??

[ablue]

PayPal is in hot water these days.

http://payolapal.com/30million.htm

[Filter81]

Paypal and Enron are two entirely different monsters.. Enron was much better at hiding their wrong-doings. Paypal will gladly steal your money and then point you to page 175, paragraph 14, word 7 of their recently updated user agreement that gives them the right to do so.

 

I figure its just a matter of time before one of the ongoing class-action lawsuits or attorney general investigations turns up something to shut Paypal down. (Which is a shame because if run honestly, Paypal would've been a very good idea)

 

 

[OldSchoolTerry]

Yeah, there's been a lot of complaints about them lately, huh?....

[Zanarkand]

Paypal's biggest problem is that they're unregulated. They handle tens of millions of dollars, yet aren't required to follow a) audit standards of institutions trusted to handle tens of millions of dollars, b) hiring standards, including background checks, of institutions trusted to handled tens of millions of dollars, not to mention secure personal information, c) accounting standards of institutions trusted to handle tens of millions of dollars, d) you get the idea.

 

Paypal's not a bank. Technically, they don't have to adhere to bankish regulation. Of course they should anyway, just to be on the up-and-up. But they don't.

Paypal is run by the sort of people who would rather spend $1,000,000 fighting allegations of wrongdoing than spend $100 to just do things right in the first place. It's not surprising that they have yet to show a profitable quarter.

 

Count on the $70 million recently raised by their IPO to primarily enrich the executives. The only way to save Paypal long term is to merge them into Ebay's credit union.

[kryptonitecomics]

This post doesn't really point out the specifics of what's going on??? I have been using paypal for a few years now and have had well over $1000 dollars in my account at times and I have never had 1 cent taken, so what gives? If there is a reason to be cautious or if others have had negative ruin ins with Paypal I want to know about it so I can take the appropriate action!!!

[RTBrandy]

Paypal's biggest problem is that they're unregulated. They handle tens of millions of dollars, yet aren't required to follow a) audit standards of institutions trusted to handle tens of millions of dollars, b) hiring standards, including background checks, of institutions trusted to handled tens of millions of dollars, not to mention secure personal information, c) accounting standards of institutions trusted to handle tens of millions of dollars, d) you get the idea.

 

Paypal's not a bank. Technically, they don't have to adhere to bankish regulation. Of course they should anyway, just to be on the up-and-up. But they don't.

Paypal is run by the sort of people who would rather spend $1,000,000 fighting allegations of wrongdoing than spend $100 to just do things right in the first place. It's not surprising that they have yet to show a profitable quarter.

 

Count on the $70 million recently raised by their IPO to primarily enrich the executives. The only way to save Paypal long term is to merge them into Ebay's credit union.

 

Or, to get new management. Which will have to happen for the stock to survive. That kind of corporate silence and BS isn't flying on the street these days.....

[joe_collector]

This post doesn't really point out the specifics of what's going on??? I have been using paypal for a few years now and have had well over $1000 dollars in my account at times and I have never had 1 cent taken, so what gives?

 

Basically it's the luck of the draw, and if you fall into Paypal's definition of "suspicious activity". Many of those that got their money snagged were scamming, but others may have done a lot of transactions over a short period of time, and then got snagged.

 

The real issue is, no matter if you're innocent of guilty, Paypal will scam the money and make it near impossible to get it back.

 

I use Paypal, like the service, but I make dang sure to use it in a very careful way. As in, a separate, $0 bank account that is not confirmed by Paypal, hooked to a measly $500 credit card.

 

My liability is nil, they can't get to my account (just in case, I put a Paypal "no transfer" flag on my account), I can easily reverse any Paypal CC charges they enact, and that's why they'll probably leave me alone.

[ablue]

This post doesn't really point out the specifics of what's going on??? I have been using paypal for a few years now and have had well over $1000 dollars in my account at times and I have never had 1 cent taken, so what gives? If there is a reason to be cautious or if others have had negative ruin ins with Paypal I want to know about it so I can take the appropriate action!!!

 

Here is part of the problem PayPal is in.This story is from the site the link directs you to.

 

 

 

 

 

"You may be a PayPal subscriber or thinking of joining PayPal. My advice is to cancel your account and get your money out while you still can. If you are thinking of subscribing I suggest you read the pages in the Links to PayPal Warnings.

 

I never had one complaint or chargeback and never a hint of fraud anywhere. Then they did it to me like they have done to countless others. They are impossible to deal with. Unbelievably arrogant, insolent and ignorant. There are better alternatives, safer with employees and a corporate culture that is defiantly more courteous and professional to deal with. Click Here for links and information.

 

PayPal looks to me like a complex and well advanced Ponzi Pyramid scheme. Remember PayPal is not a bank. There is only a promise from them to pay. If you read their 25 page agreement it will become obvious that this is a promise they can break at any time, for any reason and never return your funds. Very little of your money is kept on account. The vast majority is invested in strange ventures similar to the Enron investments. As long as people keep putting money in and not taking their money out the Pyramid is stable. However with skimming of these funds by executives the time will come when they can't pay. The Government has many investigations in progress and sooner or later the PayPal Pyramid will collapse. When it does, your funds will be gone ant there isn't a thing you can do about it.

 

My personnel belief is that when they run short they arbitrarily place random accounts on "Limited Access" so that they can skim the funds. Rob Peter to pay Paul as the saying goes. With as many members as they claim they only have to do this to a small percentage every year to skim a billion or more bucks each time. The way the one sided agreement reads it makes it virtually impossible to take PayPal to court to account for it's theft.

 

But here is the ultimate kicker. It is not only the funds they have on account but all the funds in your bank account. When you are not watching they will go to your bank account and empty it. To sign up with PayPal you agree to let them withdraw funds from either your bank account or credit card at their sole discretion. Believe me, they do this every day and sooner or later they will do it to you if you are a PayPal subscriber.

 

With the investigations going on by the Justice department, States Attorney Generals and Class action Suites making their way through the courts it is only a matter of time before the whole house of cards comes crashing down. Remember your funds and the funds that PayPal arbitrarily removes from your bank account is uninsured. That's right, when the deck of cards goes down, your money goes with it."

 

 

 

 

[chromium]

I read the info on that site over a year ago....way before eBay bought paypal lock,stock and barrel.

There still are pitfalls dealing with Paypal, you have to cover your behind, but I don't see paypal doing a 'take the money and run'....not now