How they get your bank account?

[ryan]

This just sounds like such a major bad idea. I have read too many horror stories about PayPal run amok and freezing or overdrawing linked bank accounts. And since they are a NON-bank, they are not bound by FDIC guidelines. Scary.

I don't know where you are getting this info from???

PayPal can not 'freeze' your bank account. The only thing they can 'freeze' is your Paypal acct. ....btw, in 10 years and many transactions I've never had it happen, even for a day. (Not saying they couldn't freeze my Paypal acct for some reason, just that I've never experienced it.)

They are definitely not perfect, but the way I described is feasible.

[treehugger1]

There are many alternative ways to bank. Good debit-card companies: Bank Freedom, AccountNow, NetSpend, Ready Financial, the list is endless, all with FDIC coverage. Internet Banking: Ally (new name for GMAC,) HSBC, again the list is endless. None of these are illegal methods of banking. What is illegal is for a judgment debtor to knowingly hide/transfer non-exempt assets from judgment creditors, often referred to a transfer or conveyance. Each state has their own laws/statutes but they are generally uniform with respect to US civil codes.

Again, I'm no expert. I cna only speak from personal opinions and experiences.

[dscurlock]

in the state of MN, it says you can not levy an account lets say to freeze account and take jan's funds to pay jacks debts...but that does not mean they will not freeze the account out of spite anyways..after all, the bank is just doing what they are told
via court order...What if the funds belonged to jan, and jack owed the money, but they froze your accounts of $20k...What then...? Do you think the bank cares? Do you think collection company cares? hell no, they just want the money, to them, it does not matter whom the money belongs too...When it comes to bank levy's - no one seems to care...the law is weak in that area...
it takes forever to save a little bit of money, and they can freeze your account within seconds....because when you
opened your bank accounts, you signed papers giving the bank permission to follow any bank levy orders....

[tigergem]

I don't know where you are getting this info from???

PayPal can not 'freeze' your bank account. The only thing they can 'freeze' is your Paypal acct. ....btw, in 10 years and many transactions I've never had it happen, even for a day. (Not saying they couldn't freeze my Paypal acct for some reason, just that I've never experienced it.)

They are definitely not perfect, but the way I described is feasible.

Heard it mainly from people who sell stuff on eBay. It sounds like that whole eBay/PayPal deal has gotten to be a real nightmare to deal with. I'll pass on that drama, thanks just the same.

[WhatMoney]

There is nothing unsafe about PayPal. Sellers often complain when one of their customers is dissatisfied about the transaction and complains to PayPal about the merchandise. (It's called Buyer Protection.) PayPal files a dispute and can freeze the amount of the sale in the seller's account until the dispute is settled. If PayPal rules for the buyer, they can remove the sale funds from the Seller's account or bank account. This is just like credit card protection for the buyer. Then the seller's get on the PP forums and scream and moan. Yeah it's tough being a seller on PP these days if your customer's are dissatisfied.

Obviously you don't use an active seller's PP business account to keep your personal monthly bill funds. Just open a PP account that is used only for personal money transfer. I've had 2 PP accounts for 10 years - one for eBay business and one for personal use. Never had any problems.

The only risk w/ any online account, including PP is that your password might be hacked. This happens only to people that don't know how to guard against phishing, or pick easily guessed passwords like 12345. Did you know 12345 is the most common password used by the people in this country - followed by passwords based on easily found public information like your birthday, street address, etc. If you are afraid of PP then you should fear all online financial transactions.