Local woman: PayPal freezes account after unemployment deposit

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ALBANY, N.Y. (NEWS10)- Tina Morrison waited three months for her unemployment payments. She says on July 8, the money was deposited into her PayPal account. Still, like many PayPal users, Morrison’s account is frozen with no estimate on when she will be able to access the money.

An inquiry to PayPal by News10 ABC went unanswered. According to PayPal’s Help Community, it’s been a problem for many users. A notice, says the company, is dealing with limited customer service.

PayPal’s website says if there is any unusual activity they will put a hold or freeze on an account until they can verify the account. Morrison says almost $5,000 is currently being withheld from her because the deposit was flagged by PayPal as an abnormal activity.

Morrison has submitted the information requested by the company but they have not provided her with any further information. She’s used multiple avenues of communication to get a date when her account would no longer be limited without luck.

If your payment is on hold or not available right away, we’ll notify you via email or an alert on your Summary page.

Delaying funds availability is a common industry practice we implement to help ensure the secure use of PayPal by both buyers and sellers. By placing your payment on hold, we’re trying to make sure that there’s enough money in your PayPal account to resolve any issues that may arise with your account such as chargebacks or disputes. When subject to a hold, the money is temporarily not available to use.

If there aren’t any issues with your transaction or account, the payment will typically be released within 21 days after receipt. After your hold is released, it may take until midnight (but it’s usually sooner) for the money to appear in your PayPal account.

PayPal’s website

Morrison says PayPal’s automated telephone system hung up on her when she tried to call. “When you call PayPal and go thru the automated message, it says please hold while we transfer to an agent, then a recording comes up and says ‘we cannot address your inquiry by phone at this time’ and hangs up. No matter what button you push, no matter what department you go to. I was able to access the account perfectly fine until the unemployment back pay arrived,” says Morrison.

“I shouldn’t have to explain anything to them about unemployment much less wait till they feel like it to allow me to access unemployment that was finally paid,” Morrison says. “It’s hard enough to go through the unemployment wait, now I have to deal with a wannabe bank holding government direct deposits for absolutely no reason at all when on the site they encourage direct deposit.”

“I only used PayPal because I am in a wheelchair and cannot just throw myself in the car and cruise on down to the bank. PayPal seemed to be the best online choice- easy and convenient. If I only knew how filthy they would actually get down, I would most certainly have gotten a ride and opened an account,” Morrison says.

PayPal’s Help Community posts

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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