Discussion on PayPal's TOS on Crypto

[Satan]

Alright, so in the shoutbox today I learned that PayPal's TOS actually restricts Cryptocurrency... Which is kinda fucked when your account gets limited in the amounts of a couple thousand to several ten thousands....

Might I just ask... are there any legal experts here who can argue that what PayPal can do to your account (freezing it and holding it for an indefinite amount of time since they could legally tweak their words to extend the usual 180 day limitation) is legal?

I as a consumer don't find this legal. PayPal acts like a bank/middleman. If your bank suddenly decided "hey we're going to hold your funds because we don't like how you're spending your money" I don't think that's legal whatsoever...

Cryptocurrency is not illegal so they can't argue that you're trading illegal items thus obtaining illegal money... I'd like to see how long a large corporation like PayPal can drag out a legal battle if someone with enough money (or several) were willing to collaborate in a lawsuit war.

 

[Satan]

In regards to the legality of PayPal limiting people's accounts, I'm sure they have multiple clauses in their TOS and UA that basically state they can literally do anything they want with your account.

Even if they state that in TOS, I'm sure its not enforceable legally if you bring it to court. That's my point.

 

[Landon]

Legally yes.

By signing up, you agree to their Terms and User Agreement as stated by Bucket. They state specifically they can hold your balance for 180 days here:

"Hold your PayPal balance for up to 180 days if reasonably needed to protect against the risk of liability or if you have violated our Acceptable Use Policy."

(https://www.paypal.com/us/webapps/mpp/ua/useragreement-full ; Actions We May Take).

Now, if they were to say: "Hey, if you get limited, we KEEP your money" that would be illegal, but since they do return it within 180 days, it is completely legal. They cannot keep your money. They legally have to return it to you. Even if your account is terminated, they will let you withdraw:

If we close your PayPal account or terminate your use of the PayPal services for any reason, we’ll provide you with notice of our actions and make any unrestricted funds held in your PayPal account available for withdrawal.

tl;dr
Yes they can.

 

[Satan]

after 180 days.

Apparently I read on the google that people have had their funds limited for longer than that after the 180 day period as they can tweak their words in making it as long as they want.

 

[Satan]

Credit Card Companies have been doing this for months now. I think its ridicules. We should be able to spend our money as we please.

I'm pretty sure u can fuck over a bank or credit card company.... PayPal isn't all too different, its just online currency basically. Aren't they held to the standards of CCs and Bank companies ?

 

[Crimvael]

IANAL, but since you agreed to their TOS that means they can do whatever they want, as long as it's in their TOS?

 

[Satan]

IANAL, but since you agreed to their TOS that means they can do whatever they want, as long as it's in their TOS?

My point being that TOS is only as powerful as the legal system allows it to be. I don't know if paypal has had to deal with people who try starting lawsuits and simply outlast them OR if there is a chance to tell them to back off from crypto