Frequently Asked Questions
Why did PayPal take my money after 180 days?
Because PayPal applies an internal clause called “damages caused by Acceptable Use Policy violation”, transferring your balance to itself without proving any loss.
What does “PayPal’s damages caused by Acceptable Use Policy violation” mean?
It is an internal memo label. It is not a legal judgment, not proof of damages, and not an explanation of loss.
Can I get my money back?
Yes. Many users recover funds through arbitration (USA), ADR (EU), FOS (UK), or FIDReC (Singapore).
Do I need a lawyer?
No. These procedures are designed for consumers and are routinely won without legal representation.
How long does the AAA arbitration process take?
Most cases resolve in 2 to 6 weeks. Many users receive the refund on or immediately after the mediation call.
How long does FIDReC take?
Once PayPal submits its investigation report, FIDReC matters typically resolve in 3 to 8 weeks.
How long does UK FOS take?
Most cases take between 4 and 10 weeks depending on the investigator’s queue.
How long does EU ADR take?
Approximately 4 to 12 weeks depending on country and regulator workload.
When will I actually receive the money if I win?
In most successful cases the refund arrives on mediation day or within 1 to 3 business days after the settlement agreement.
What evidence do I need?
Screenshots of the deduction memo, PayPal emails, account timeline, and any promises PayPal made about 180-day release.
Do I need to explain my activity or what I sold?
No. Never argue about what you sold or did. Focus only on the invalidity of the AUP damages clause and lack of proven loss.
Why does PayPal contradict itself?
Because support, risk and legal teams use different scripts. These contradictions are important legal weak points in your favour.
Is the AUP damages clause enforceable?
In many jurisdictions it operates as a penalty clause, which is not enforceable unless real loss is proven.
Why does PayPal refuse to show proof of loss?
Because the deduction is fixed and not based on actual damages. Producing a breakdown would expose that.
Can PayPal legally keep my money?
Only if they can demonstrate actual, proportionate loss linked to your account. Without proof, the deduction is challengeable.
Will PayPal retaliate if I file arbitration or complain to a regulator?
No. They cannot lawfully penalize you for using formal dispute resolution procedures.
What happens in AAA mediation?
A neutral mediator leads a call where both sides are encouraged to settle. PayPal often agrees to refund at this stage to avoid a formal award.
What if PayPal ignores my complaint or Notice of Dispute?
This strengthens your position. Document every non-response and attach it to your submission as evidence of unfair treatment.
Why does PayPal promise release at 180 days and then seize the funds?
Because support follows legacy scripts that describe a temporary hold, while legal later reclassifies the funds as damages. This is a contradiction you can use.
What if PayPal says I clearly breached the AUP?
Even if a breach occurred, PayPal still has to prove how that breach caused the specific amount seized. A generic breach allegation is not enough.
Does PayPal ever provide a calculation of the damages?
Almost never. The lack of itemization is one of your strongest arguments against the deduction.
Is AAA expensive for me?
No. Under the consumer rules the filing and arbitrator fees are assigned to PayPal when they require arbitration in their contract.
Does PayPal settle to avoid creating precedent?
Yes. PayPal prefers quiet settlements rather than written awards that might be cited in future disputes.
Can I win without perfect English?
Yes. The legal issues are simple and you can write in plain language. Clarity matters more than style.
Should I include screenshots in my submission?
Yes. Screenshots make the events and contradictions easy for the neutral to see.
Can I lose the case?
There is always some risk, but PayPal usually does not provide the detailed proof needed to justify the deduction.
Can PayPal refuse to participate in AAA or ADR?
No. Once the process is opened, PayPal is expected to cooperate under its own contract and the administrator’s rules.
Does my country change the basic arguments?
The legal labels differ, but the core idea is the same: fixed penalties without proof of loss are vulnerable almost everywhere.
Why is the deduction amount often fixed or capped?
Because the clause is not a real estimate of loss. It functions as a standardized penalty for alleged violations.
What is the single strongest argument in most cases?
That PayPal seized funds as “damages” without proving any actual loss, while also contradicting earlier 180-day release promises.