Can PayPal Steal Your Money? (Account Freezed, Funds On Hold)

PayPal Stole My Money: If you’re a PayPal user, you may have recently heard the news that the company is being accused of stealing its users’ money.

While it’s not clear yet if these allegations are true, it’s important to know what to do if PayPal did steal your money.

So, keep reading to find out what you can do to get your money back if PayPal did steal it from you or if it’s really just a misunderstanding.

Currently, PayPal is also facing a lawsuit accusing the company of taking users’ money without their consent.

This has caused many PayPal users to worry that their own money may be at risk. Many complained that their funds were frozen or taken without any notice or explanation.

Go through this article and find out all you need to know about this issue!

Can PayPal Steal Your Money In 2022?

In light of recent allegations, it is fair to ask the question: can PayPal steal your money in 2022? As PayPal has not been convicted of any wrongdoing and the lawsuit against them is still pending, going to a conclusion about this would be premature.

However, it is worth considering the facts of the case and PayPal’s history in order to make an informed opinion.

Considering the company’s good reputation up until now, it would be unlikely that they would engage in such activities; however, the fact that they are being accused of it is cause for concern.

So, in my opinion, PayPal is unlikely to steal your money in 2022 but the possibility cannot be ruled out entirely.

On January 14, 2022, many news outlets reported that PayPal had been sued for allegedly stealing money from its users.

The lawsuit, filed in federal court in San Jose, California, claimed that PayPal had been engaging in a “pattern and practice of misappropriating user funds.”

So, what exactly does this mean?

Racketeering is a federal crime that occurs when a company uses illegal methods to gain an unfair competitive advantage.

In this case, the lawsuit alleges that PayPal was using its position as a payment processor to unlawfully take money from its users.

Does PayPal Steal Money?

In short, PayPal does not officially steal your money. However, there have been some recent allegations that PayPal has unlawfully frozen accounts and seized the funds in those accounts without any warning.

If you have had a similar experience, you may want to file a complaint with PayPal or seek legal counsel.

As per the policies of PayPal, the company has all the right to freeze any account or limit it permanently if any customer violates the terms and conditions.

If PayPal freezes your account, then all your funds will be held for a period of up to 180 days. During this 180-day period, any claims or disputes filed against your account will be resolved using the funds in your account.

Sending an intimation to the account holder is not necessary as per PayPal policies. This means that if your account has been frozen or limited, you may not receive any warning from PayPal.

This has caused some customers to allege that PayPal has stolen their money. However, if a PayPal account is permanently disabled for violating terms and conditions, then the money in the account cannot be withdrawn by the customer.

So, in a way, PayPal is justified in holding on to the funds till the customer agrees to follow the terms and conditions.

If you feel that your account has been unfairly frozen or limited by PayPal, then you can file a complaint with them. You can also seek legal counsel if you want to take things further.

PayPal Restricted Activities List

As per PayPal’s User Agreement, a personal account holder may not use their account to engage in any restricted activities. These include, but are not limited to:

  1. Sending or receiving funds that are fraudulent in nature
  2. Maintaining a negative balance in your account
  3. Attempting to gain a cash advance from their credit card
  4. Providing false, inaccurate, or misleading information to PayPal or others
  5. Engaging in activities that result in complaints from buyers or card issuers
  6. Refusing to cooperate in an investigation by PayPal or law enforcement
  7. Using the PayPal services in a manner that violates any card association or network rules

Violating any of these terms could result in fees, penalties, or other liability imposed on the account holder.

In some cases, it could also lead to the suspension or termination of their account.

So, if your PayPal account is used for any of the restricted activities listed above, you could be subject to various consequences, including permanent loss of access to your account.

Therefore, it’s important to be aware of these activities and make sure that you do not use your account for any purpose that would violate the terms of the User Agreement.

What Are The Rights Of PayPal?

If you are a PayPal user, it is important to be aware of your rights and responsibilities.

By understanding the Acceptable Use Policy and following the guidelines set forth by PayPal, you can help protect yourself against liability and enjoy all the benefits that PayPal has to offer.

In case PayPal believes that you have violated the Acceptable Use Policy in any way, the company has the right to take a number of different actions.

These can include terminating your user agreement, limiting or suspending your account, and even taking legal action against you.

In some cases, PayPal may also hold onto funds that are in your account for up to 180 days.

It is important to remember that as a PayPal user, you are responsible for any damages that you may cause to the company.

This includes if you violate the Acceptable Use Policy in any way.

By understanding your rights and responsibilities, you can help ensure that you enjoy all the benefits of using PayPal.

So, as per the user agreement that you sign while creating your account, PayPal has the right to freeze or terminate your account if it believes that you have violated its policies in any way.

However, PayPal also has the responsibility to provide adequate notice and evidence of policy violation before taking such an extreme step.

If you think that PayPal has not followed through on its responsibilities or acted in good faith, then you can always file a complaint with the company.

What Happens If PayPal Stole My Money?

If PayPal has allegedly stolen your money, there are a few things you can do. What happens is that if PayPal has permanently frozen your account, speaking with customer service probably will not help.

Instead, you need to speak with someone who has more authority, like the Executive Escalations team. This team deals directly with complaints, disputes, and claims.

You can reach them by emailing [email protected] or by calling 1 (888) 221-1161.

Additionally, you could create a lawsuit like the plaintiffs in the recent lawsuit have done. If they win the case, then PayPal will most likely have to refund everyone who they have stolen money from.

If it’s just a misunderstanding, then hopefully speaking with customer service or the Executive Escalations team will help clear it up.

So, if you think that PayPal has stolen your money, your best bet is to email or call the Executive Escalations team in order to get your money back.


In my opinion, PayPal did not steal your money. In most cases, the company just tries to protect itself from fraudsters by freezing accounts that seem suspicious. However, if you believe that your account was frozen unfairly without any valid reason, you should reach out to PayPal’s customer service department and talk to them about your issue. Most likely, they will be able to help you resolve the problem and get your money back within 180 days.