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Payment Processor Issue — PayPal limited my account permanently

Started by confused_creator_legal · Sep 23, 2025 · 1,462 views · 18 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
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confused_creator_legal OP

I'm dealing with a situation and need some guidance.

PayPal limited my account permanently. I've been dealing with this for about 9 weeks now and the situation isn't improving.

The amount being held/disputed is approximately $4,674. I have tried contacting customer support 2 times with no resolution.

Am I overthinking this or is this a real legal issue worth pursuing?

DT
desperate_trader_MA

NAL, but from what I've read, you should send a written demand. That said, definitely get a lawyer to look at the specifics.

HM
help_me_tenant_2023

I had a similar issue and ended up consulting with an attorney. It was worth the $200-300 for the initial consultation just to understand my rights.

PN
Photographer_NYC

I went through almost the exact same thing.

In my case, it took about 2-4 months to resolve. The key was hiring an attorney to send the initial letter.

HM
help_me_worker_question

Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.

NH
need_help_employee_CA

NAL, but from what I've read, you should check your state's specific laws. That said, definitely get a lawyer to look at the specifics.

TL
Mod_TermsLaw Moderator

I specialize in this area of law. Here's my take on the legal issues.

The key question is whether the applicable statute of limitations has run. Depending on your jurisdiction, you typically have Regulation E years for this type of claim.

I'd recommend documenting everything in writing from this point forward. Keep copies of all communications.

AP
anon_parent_2023

Have you tried reaching out to your state's labor board? They sometimes have free resources or mediation services.

NE
newbie_employee_2025

Have you tried reaching out to your state's attorney general? They sometimes have free resources or mediation services.

AF
asking_for_friend_parent_TX

Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.

FT
first_time_employee_2022

I had a similar issue and ended up consulting with an attorney. It was worth the $200-300 for the initial consultation just to understand my rights.

FT
first_time_student_question

NAL, but from what I've read, you should file a complaint. That said, definitely get a lawyer to look at the specifics.

DW
desperate_worker_2023

This happened to me too. Have you tried filing a complaint with the relevant agency? In my case they investigated and it got resolved without needing a lawyer.

PJ
Paralegal_Jen

Not a lawyer, but I have direct experience with this.

In my case, it took about 3-6 months to resolve. The key was having everything documented.

JC
just_curious_worker_today

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

FD
frustrated_dev_FL

Have you tried reaching out to your state's bar association? They sometimes have free resources or mediation services.

SB
SmallBizOwner_NYC

Not a lawyer, but I have direct experience with this.

I ended up having everything documented, which cost about $3-6 but saved me a lot more in the long run.

ES
eComm_Seller_2022

I've dealt with this before.

I ended up having everything documented, which cost about $3-6 but saved me a lot more in the long run.

CT
CryptoTrader_2023

I've dealt with this before.

What worked for me was escalating to a supervisor/manager. It took 1-3 months but was worth it.

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