PayPal asked for my checking account number for an upgrade, and shortly thereafter dipped into my checking account without my permission, causing an overdraft, which the bank charged me for. They did this for a fraudulent claim from a company who advertised a special membership for $4.99, but charged me over 10 times that amount. I do not see how this can be legal! I should never have given them the information but they limit your account if you don't comply. What a shady way to do business.

Hi Gretchen, that paypal is as shady as it gets. If you are planning to stick it out with them (until they shut you down) I recommend that you close any checking account you have linked to your paypal account and only use a CC instead. That way you can dispute any fraudulent charges by requesting a chargeback. Just a thought.

how awful! it's scary because you give them your info in good faith that they use it for DEPOSITS only - yet they find a way to stick it to ya anyways They forget that the average dick or jane doesnt have thousands of dollars sitting around in their checking accounts like the fat cats on top of the pay pal food chain.

sorry to hear about that, hopefully it works out for you in the end

Sadly Paypal does not have to abide by the legalities of the banking industry. Paypal makes their own rules and regulations and changes them along the way...giving buyers and sellers excuses along the way. You will have to call daily (which will be time consuming on hold alone), email and call some more. You cannot sit still thinking that once you've told your story to someone that it will get tended to because it doesn't. You would think there would be some sort of logging system for customer issues, what is in the works, what is pending, but you tend to get the same vague statements with no end in near site. Definately close accounts and don't plan on making a penny off business on Paypal because now your acct has been red flagged so you will most likely stay on their radar for future fund freezing or, etc...I would suggest look into the merchant account service...you may have to pay a little but you end up paying through the nose with Paypal!