PayPal users in the UK are up in arms over what they claim is the company's heavy-handed anti-money laundering...
and anti-fraud policies.
The online payment services company, which is used by individuals and small and larger businesses to send and receive payments, has tightened security, affecting many of its users.
Users complain that some transactions on eBay are held for 21 days before PayPal releases the money. The only way a seller is able to obtain cash from a sale before this timelimit is if the buyer leaves positive feedback. This has led to some eBay sellers demanding positive feedback from buyers before they ship products.
One user said, "Paypal is now pretending to be an Escrow service. The only problem is that they are not licensed as one."
Other users have also had their PayPal accounts checked for money-laundering. Their account is cleared only once the user has completed a PayPal anti-money laundering form on its website.
PayPalk user Andrew Furtek, said, "I am going to report them to the FSA and possibly the Data Protection Commissioner. I am just an individual who buys and sells the odd thing, not a business."
Furtek said PayPal should be subject to UK banking regulations. "As it is, it appears to be completely remote and unaccountable to its users and judging from threads I have read elsewhere appears able to act with impunity, and gets away with it."