why PayPal sucks

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My PayPal and Ebay accounts were broken into, and approx. $1500 was charged. My bank was kind enough to reverse most of the charges, however PayPal says I have a negative account balance. There is also still a $550 charge on my PayPal Buyer Credit account. They have now sent a collection agency after me demanding the money I "owe" them.

I am now being forced to sue PayPal so that I don't have to pay them money for things I didn't buy. Here are some things you can do if the same thing has happened to you:


Here it is:

Week One: State and Local Agencies

1. Write a logical, grammatically correct complaint letter pinpointing your experiences, complaints, and PayPal's questionable practices, policies, and illegalities. You never know who will read the letter and it may need to serve as legal documentation so please take your time and do it right. Authorities tend to listen to intelligent people. Good grammar, periods at the end of sentences, capitalize what needs to be capitalized, etc. An excellent example from one very disgruntled PayPal customer (and current Whistleblower of the Month) can be found here.

Please note that while the majority of their offices can be found in Omaha, NE, PayPal claims to be headquartered in Palo Alto, CA. Because of this, you need to make this clear in your letter and complain to both California and Nebraska state agencies.

2. File a complaint online AND mail one in to the Heartland Better Business Bureau (serves Omaha, NE). Include your complaint letter.

Online Form

Mail to:

2237 N 91st Court
Omaha, NE 68134

File a complaint online with the Better Business Bureau of Silicon Valley (Serves Santa Clara County and Palo Alto, CA) AND mail one also. Include your complaint letter.

Online Form

Mail to:

The Better Business Bureau of Silicon Valley
2100 Forest Avenue, Suite 110
San Jose, California 95128

3. File a complaint online AND by mail to the the Nebraska Attorney General's Office and its Consumer Protection Division. Include your complaint letter.

Online Form (Be sure to write down your case #)

Mail to:

Consumer Protection Division
2115 State Capitol
Lincoln, Nebraska 68509-4906

Don Stenberg
Office of the Attorney General
2115 State Capitol
Lincoln, NE 68509

If the spirit moves you, call: 1-800-727-6432

4. File a complaint online AND by mail to the California Attorney General's Office. Include your complaint letter.

Online Form

Mail to:

California Department of Justice
Public Inquiry Unit
P.O. Box 944255
Sacramento, CA 94244-2550

5. Mail a complaint to the Nebraska Department of Banking and Finance. There is a PDF complaint form that needs to be downloaded. You should also call them at (402) 471-2171. Include your complaint letter.

Get the Form

6. File a complaint by mail to the California Department of Corporations. You will need two different forms and three copies of your complaint letter to go to three different offices.

Get the Form (PDF)

Mail this to:

Enforcement & Legal Services Division
Department of Corporations
320 West 4th Street, Suite 750
Los Angeles, California 90013-1105

Enforcement & Legal Services Division
Department of Corporations
1390 Market Street Suite 810
San Francisco, CA 94102-5303

Get the Form (PDF)

Mail to:

Department of Corporations
Financial Services Division
320 West 4th Street, Suite 750
Los Angeles, California 90013-2344

7. Contact your own State Attorney General's Office. Download/fill our any complaint forms and include a copy of your letter. Mail to the address given. Enough complaints and PayPal may not be able to do business in many states, therefore putting them at a serious loss.

Find your State Attorney General

8. Locate the local law enforcement agencies (the police) in Omaha, NE and Palo Alto, CA. Complain. We know it seems way off but do it.

Week Two: Government Agencies

1. File a complaint online AND by mail to the Federal Trade Commission. Include a copy of your complaint letter. Also call 1-877-FTC-HELP.

Online Form

Mail to:

Federal Trade Commission
Washington, D.C. 20580

2. File a complaint online with the FBI's Internet Fraud Complaint Center. Include as much if not all of your complaint letter.

Link to Online Form

3. Contact the Federal Bureau of Investigation. Mail your complaint letter to their main office, your local FBI field office, and fill out the online Tips and Leads form--include your complaint letter. While they are primarily using this for terrorist info, they say that you can submit any information on anything---and besides PayPal is a terrorist in a sense, isn't it? Crime is crime.

Link to the FBI Tips and Leads Form

Mail to:

Federal Bureau of Investigation
J. Edgar Hoover Building
935 Pennsylvania Avenue, NW
Washington, D.C. 20535-0001

Link to List of FBI Field Offices

3. File a complaint/inform the FDIC. PayPal is NOT a bank but carries on business like one. We need to make the FDIC aware of this. Include a copy of your complaint letter.

Online Form

Mail to:

FDIC Headquarters
Federal Deposit Insurance Corporation
550 17th Street NW
Washington, DC 20429-9990


Federal Deposit Insurance Corporation
Legal Division
550 17th Street, NW
Washington, DC 20429-9990


Federal Deposit Insurance Corporation
Office of the Executive Secretary
550 17th Street, NW
Washington, DC 20429-9990

4. Contact the SEC. PayPal doing an IPO would just allow them new ways to commit fraud. Let the Securities and Exchange Commission know what type of business PayPal is doing. Let them know why you think that they should not be allowed to do an IPO. Include a copy of your complaint letter. Don't let them get the public's money and take the investors for their ride.

Online Complaint Form

Mail to:

SEC Complaint Center
450 Fifth Street, NW
Washington, D.C. 20549-0213
Fax: 202-942-9634

Week Three: Online

1. Create your own Anti-PayPal website, email/other group. Make multiple ones all over the web/replicate pages. Be sure to document your complaint and experience. It doesn't have to be anything fancy. This site was created in a day using Front****. Use free webspace, register a domain, etc. Just make sure your name doesn't show up as author in the HTML. Sign up for webspace under a bogus name/email if you feel uncomfortable. Make sure you register these with every search engine, free for all link list, and directory, multiple times, on the web.

2. Post your experiences and complaints on our website, and other Anti-PayPal websites. Post a link to our action calendar.

3. Find consumer complaint, crime, scam websites. File a complaint/document your experience. Consider filing an online complaint with the International Web Police.

Web Police Crime Report Form

Web Police Scam Report Form

4. Find and contact other PayPal users (you can find many on eBay). Let them know what is going on. Direct them to the websites and information.

5. Contact the media. Contact online magazines, info sites, etc. Include a copy of your complaint letter.

6. Make an informational email. Send it to someone who might like to know. Include a note in the email that asks them to forward this to everyone and have them forward it and so on and so on.

Week Four: Get Inside

1. Browse the websites of the above-mentioned agencies and resources. Get names, contacts, addresses, and phone numbers. Call or mail and befriend workers. It helps to have allies. Look, contact, repeat.

2. Write to your local news, any reporter who does exposé and consumer reports.

3. Contact the media/news that covers Omaha, NE and Palo Alto, CA. Inform them and tell them you have a HOT story.

4. Contact other media sources-magazines, tv, other. Tell your family, coworkers, business associates, and neighbors.

5. Annoy PayPal. Send them a copy of your complaint letter. Tell them you are contacting the authorities. Get the home addresses/telephone numbers of the executives and employees and bug them BY TELEPHONE AND MAIL. If you are near their office locations, stop by the office and demand assistance (trust us, getting escorted out is worth it). Call individual PayPal employee extensions. Play psychological games with their employees. Become their friends, but play on their weaknesses, and scare them a bit. Leave weird messages on their voicemails. Allow us to give you a head start by giving you some employee extensions. The main number is (402) 935-2000. 2001 to about 2319 and possibly beyond are all PayPal employee extensions. Just dial and document the names. Please email us with anymore that you may find.


Chris, Seller Protection


Mary Joe



Gloria, Finance

Michelle, Finance



Sandra (possibly a manager or executive)


Someone in ACH Dep.

6. Contact politicians. Start at the local level and work your way up.

7. Get ready to repeat the steps of this calendar all over again for the next month.

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