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I have been asked to look at this for you.
You say that you complain to the ombudsman. Presumably, that is the Financial Ombudsman. I can’t see why the Financial Ombudsman would find against you but they don’t appear to have dealt with everything.
However I’m not certain why you are now complaining to the Financial Conduct Authority.
PayPal at liberty to deal with whoever they like and you cannot compel them to keep your account open.
On the other hand they are not entitled to keep money which rightly belongs to you so if the money does rightly belong to you, I don’t know what basis they think that they are entitled to keep it because if it doesn’t belong to you, it doesn’t belong to them! It should be returned to whoever owns it.
However you can’t beat them with a blunt instrument until they pay up and PayPal are no more exempt from legal proceedings than anybody else. The problem for you is that unless you have a UK address, you are going to be issuing court proceedings in Luxembourg which is not particularly practical.
The only address that I know of for PayPal is in Luxembourg although you may have UK addresses for the individuals.
As I said earlier, they cannot be compelled to continue to do business with you but if they have breached their own terms and conditions, they are in breach of contract and you potentially have a claim to make against them but you need to bear in mind that they have unlimited money to conduct litigation well as you would be faced with paying your own legal costs and they could be tens of thousands of pounds.
Getting the money back from them however is going to be small claims court and its adjacent simply writing to them and telling them that unless they pay by a particular date (end of the month?) You will be issuing court proceedings against them.
You would need to look at the terms and conditions to see which law applies because you could well be issuing court proceedings in Luxembourg and for GBP4000, that’s not a practical proposition.
Do remember that I can only give you my opinion.
Another lawyer may have a different opinion. Litigation needs at least 2 parties and neither goes to court expecting to lose.
Nonetheless, one of them does, even though they have been told by their respective legal advisers that they have a good chance of success.
If there was a black-and-white answer to every legal problem there would be no need for anything to ever proceed to court.
If the barristers opinion is more favourable, then go for it but ask whether it comes with a guarantee and find out how much money it’s going to cost you to get there.
I couldn’t agree more. I think it’s appalling myself. Unfortunately they judge jury and executioner and when they have made their mind up, that’s it. This kind of conduct is widely reported.
That’s how I would start the process.
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