How to Deal with PayPal and Banking Issues

Carol RoachStarred Page By Carol Roach, 10th Mar 2015 | Follow this author | RSS Feed
Posted in Wikinut>Business>Freelancing

This article is about the fiasco I had when I first tired to set up a paypal account. Of course this was years ago and I am have a healthy working paypal account now.


This is the first draft of a letter that I sent years ago to the ombudsman office of my bank regarding trouble with paypal.
My Name is Carol Roach
residing at: xxx
xxx 1xxx
tel: xxx-xxx-xxxx
My bank branch is: xxxx, xxxx, xxxx,xxxx

On Feb 2, 2007 I opened a Paypal account. my bank has a contract with Paypal through Wells Fargo, I even have a copy of the said agreement sent to me by Paypal at that time.

The procedure that Paypal uses is that they deposit two small amounts into the account to see if the account is valid.

Those small deposits were made. I saw them through my online account on Feb 5, it was for .01 and .18 cents. I confirmed these amounts with Paypal and everything was okay on their end.

Horror Story

On Feb 6, my horror story begins

I checked my online account and those amounts disappeared as if they never existed, no coding to tell me they were returned. They just disappeared.

I called the customer service line of my bank to ask why this could be. The customer service rep argued with me that there was no activity on my account since the 2 of Feb, and therefore this deposit of .01 and .18 cents couldn't possibly exist. Finally since I was persistent and very agitated, she called Paypal on a conference line with me present. Paypal confirmed that they sent the amounts I verified. The bank rep asked if they ever took back these amounts and the Paypal agent said, "no they do not." When she disconnects with paypal to put me on hold the line got disconnected, and I am forced to call my customer service again.

I go through the second customer service rep who is not listening to me, as I have already explained what procedures the first rep has taken. I demand to speak to a supervisor. I get somebody named Tabitha, I complain how I am treated like I am stupid, I see an amount that does not or never existed in the eyes of the my bank, yet it did exist and was sent and confirmed by Paypal. Tabitha told me that there should be a paper trace and tells me she will put a tracer on it, but my bank may not call me to tell me the results of the investigation. I was very concerned because I have several deposits, going through at this point. She confirms that there should be no problem, as my bank does deal with Paypal and I can use paypal on my account without any restrictions.

In the meantime, I have a deposit of $77.36 and $22.20 going through. It turns out they were also sent back to Paypal from my bank, deposited one day no history of that transaction ever made the next day, just like before.

I had not checked my bank account so I was not aware of this particular transaction going back to Paypal at this point because I assumed my bank was taking care of the situation.

I called my bank at the point that I saw they were returned the money to Paypal and demanded to speak to a supervisor since going through customer service reps was entirely useless.

I spoke to Laure id number xxxx, tel number xxxxx she informed me that a tracer was never made on my account, but an escalation had been. Therefore I understood that Tabitha lied to me. In terms of my bank procedure a tracer and an escalation are two different things with two different outcomes.

Laure, the current supervisor on the phone with me, called Paypal and we spook to Jay in the resolution department. Jay redeposits the two small amounts AGAIN to verify my account. Since the last two deposits Paypal sent over an additional amount of $43.32 cents which was authorized by me. As we are speaking on the phone, Laure sees this amount coming into my account - So now a bank supervisor has for the first time seen an actual amount deposited in my account.

We agree to send a fax to paypal showing this amount has been accepted by my bank to verify that my account is indeed a valid one. I have a copy of that fax at the office of my fiance as we share a joint bank account.

The next day the amount is gone once again like it never existed with NO code to inform as to why. I am now dealing with Sergio XXXX from the customer care department. His phone number is: xxx-xxx-xxxx. He is the last person that I am dealt with after trying to get this resolved with six different people at my bank.

The xxxl bank had advanced me the initial $77.36 cents and $27.20 expecting to get the money back from Paypal when they eventually got that money returned to them. The new amount of $43.32 was expected to be okay because Laura had seen it and a fax had been sent out to confirm it, But we later found that it was returned to paypal just like every other transaction. That said deposit appeared in my account on Feb 16 and gone again on Feb 17 without a trace. Mr. XXXX put a tracer on the account to find out about Paypal money disappearing all the time.

They also charged me $38.30 for not having sufficient funds in my account when the funds were there and they did sent the money back. I do not feel I should pay this amount for an unresolved bank error.

By Feb 20th, if you remember the conversation between Laure from the XXXX Bank and Jay from Paypal; the initial .01 and .18 cents he said he would deposit to my account to once again verify if it is a valid account appeared in my account. I do have a copy of transaction of Feb 16 see paragraph above and the new transactions of Feb 20th copied from my online checking account if you need it for verification purposes.


Mr. XXXX, calls me again to inform me that the tracer department called Paypal and Paypal would not release any information. I have called the xxxx Bank no less than 15 times, and I have called Paypal no less than 15 time over this matter by this point. But still in the interest of getting my predicament resolved, I complied, I call paypal yet again. I speak to a resolutions specialist by the name of Tony ID: XXXXX who tells me the reason that the money was returned from the XXXX Bank was coded: R04 - which essentially meant that my account did not exist.

I give this message to Mr. XXXXX who gives it to the tracer department and they once again called Paypal and did not get any information because Paypal will not release information to a third party.

Mr. XXXXX called me again, taking the attitude that the XXXX Bank is not at fault, actually he had that attitude all the way through and now the XXXX Bank has closed the case.


I have no resolution. Money cannot to be transferred to my account through Paypal without being returned. I do not have an explanation that there is ever was a record kept by the XXXX Bank of Canada, one of the largest banks in North America and trend setter for Canadian business on why my money was returned. They don't even acknowledge for the most part that this money existed; with the exception of the one fax my fiance has, recognizing one deposit only.

Is this the way a major bank does business? I demand that my rights as a client be protected. I want a decent resolution.

Thank you very much, and please do not hesitate to reach me if you have any further questions at this time.
Carol Roach

This letter to the ombudsman's office, was addressed, I was referred back to the bank to a special resolution department that nobody told me about before and finally the problem was solved.

All photos are taken from the public domain

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Bank Issues, Bank Ombudsman, Letter To The Ombudsman, Ombudsman, Ombudsmans Office, Paypal, Paypal Account, Paypal Issues

Meet the author

author avatar Carol Roach
Retired therapist and author of two books, freelance writer, newsletter editor, and blogger. I write, health, mental health, women's issues, animal , celebrity, history, and SEO articles.

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author avatar brendamarie
11th Mar 2015 (#)

I am glad, you finally got the whole thing worked out. I use Paypal all of the time. Thank goodness I have never run into anything like this.

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author avatar spirited
11th Mar 2015 (#)

"I had when I first tired to set up a paypal account."

Interesting that there's a small typo in this opening line, but it describes how you must have felt after all of this toing and froing.

Dealing with bureaucracy is almost always such a nightmare unfortunately.

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author avatar Shamarie
11th Mar 2015 (#)

Thank God things worked out for you. I hope you don't experience that again!

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author avatar WOGIAM
11th Mar 2015 (#)

That was a long and stressful things you went through, i am glad it was resolved at last, thankfully opening a paypal account now is so much easier.

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author avatar Kingwell
11th Mar 2015 (#)

God t know that things worked out well in the end. I have a pay pal account and no problem so far. Blessings.

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author avatar Kingwell
11th Mar 2015 (#)

Sorry it should read good to know.

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author avatar Eve Sherrill York
12th Mar 2015 (#)

What a story. Glad you finally got it resolved.

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