Dear Screw-Paypal


I have effectively been screwed by Paypal. In November, I started selling some cell phones and the business really picked up, so I began a business this way. 

After a while, it did so well, I quit my day-job. Then in January, they called me, and told me they'd be holding a 20% reserve on my account for 120 days along with a $630 collateral. 

This totally screwed my business up, considering I was already on a tight budget. I was investing ALL of my profits into new inventory, and listing items again and again. 

8 people filed claims out of nearly 120 phones for being "late". Even with Christmas rush. Paypal sees that as a threat, and freezes my account. Now I don't have money to pay for nearly 20 items that are already paid for. 

People are placing claims now faster than ever, and soon I will be more than $3000 in debt. Even with the reserve lifted. So I cancelled my bank account, so they couldn't pull it out from there. 

Will they start coming after me?

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