PayPal: You Owe Us $38.41 From 2004 Because We Say So

Did you know that there’s a seven-year time limit on PayPal chargebacks? Yeah, neither did we, and neither did Dan. He still had to fork over $38.41 owed to PayPal from an an unknown account belonging to him, even though he didn’t recognize it. What?

So I got an email from Paypal that my account had been suspended for a $38.41 balance, so I called Paypal. I was informed by supervisor [redacted] that there was a chargeback on an account that I had no knowledge of from 2004 and my account would not be re-instated until the balance was paid. I disputed and they came back two hours later and said that it wasn’t fraud. They said I could file a further dispute, but it would take 3-5 days. Since I had a couple of hundred dollars in my account from a recent Ebay sale, I had no choice but to give them the $38.41.

They were not able to provide any verification of the account. They never sent me any mail (they said they sent emails to an email address that I don’t even know!) I’m feeling pretty ripped off about now. Has anyone else had Paypal hold their money hostage? I was under the general impression that they had to show some sort of proof. The fact that it’s a fraudulent charge from 7 years ago that they’re collecting on just doesn’t sit well with me. Anyone think I’ll ever see my $38.41 again?

It’s unlikely. They should have to prove that this is a legitimate debt, which they haven’t done, especially if Dan doesn’t even recognize the account being charged.

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