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Bank Closes My Personal Checking Account Due to withdrawing funds from my PayPal Business

Discussion in 'Making Money' started by derryl18, Jun 27, 2013.

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  1. derryl18

    derryl18 Newbie

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    My Bank (BB&T) closes my personal checking account because I withdrawled funds from my PayPal Business account. I went to the branch and the lady said that the funds that I transfered to my personal checking account was only payable to a business. I have $6000 + a pending $2100 stuck in that checking account. The lady said they are going to have to transfer the funds back to where it came from which is my PayPal account which is now limited. And that my checking account is closed and gone. I withdrawed $2000 every couple days to the checking account and the funds will show up a day and a half later with no problem. I never touched the funds and was going to take the money out tomorrow. What can I do to get my money out the checking account? and stop them from transfering the funds back to my PayPal?
     
  2. derryl18

    derryl18 Newbie

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    Answers?
     
  3. ahiddenman

    ahiddenman Elite Member

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    Get a lawyer.
     
  4. Herion

    Herion Jr. VIP Jr. VIP Premium Member

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    Get in contact with your bank or PayPal and talk things through. If there's nothing illegal/fraudulent going on, everything should be resolved shortly after.
     
  5. derryl18

    derryl18 Newbie

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    Everytime I call BB&T customer service they tell me to contact a local branch.. When I contacted a local branch they said they can't discuss everything over the phone.. When I went into a local branch the lady said my account is gone and the funds is transfering back to my PP which is a bad idea. This all happened in one day when yesterday everything was perfectly fine.
     
  6. tnhomestead

    tnhomestead Regular Member

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    Need to talk to a manager -- I would try to meet the local vp or branch manager, they can have the power to help. If nothing else, why not just open a business account?
     
  7. derryl18

    derryl18 Newbie

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    Even if I open a business acount I will not be able to get the 6000 that is in my personal account.
     
  8. shellhackx

    shellhackx Regular Member

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    What have you been doing to make that money if you dont mind me asking.

    Go to multiple branches in your area one of them can help you, you have to talk your way through and if someone doesnt give you goos advice ask to speak to a higher up.

    regards
     
  9. AquaticGamer

    AquaticGamer Jr. VIP Jr. VIP

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  10. Techxan

    Techxan Elite Member

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    That money is still your money, unless something is going on here. It will go back to paypal, then you simply find a different bank, a open the proper account.

    It is just a delay.

    This is why I use the paypal debit card.
     
  11. HerpDerpSlerp

    HerpDerpSlerp Power Member

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    This doesn't make sense unless there is more to the story. Regardless of where your money came from it was deposited into your personal checking account. I have a business paypal account too and the name isn't even registered. I deposit 4 figures numerous times a month, take money out of the ATM, walk personally into banks and talk to a teller and nobody asks me about my business besides the odd one flirting with me when they see the numbers.

    If someone dared closed my accounts for any reason I would not leave the bank until they gave me the legal reason to do so. If it was because I never registered a name, well that is pretty easy to do.....$8100 is not really an alarming number especially in multiple deposits. 10,000+ is when the government gets a bit nosey but that is outside the bank and a different can of worms

    There must be more to the story here.
     
  12. unclemike

    unclemike BANNED BANNED

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    To me it seems like their is more to this story. However with the information given I do not see a tragedy but merely
    a delay in getting your money out. Why is your PayPal Account limited and what are they asking for to remove the limits? Or is the
    PayPal account permanently suspended? With either case you are going to want to open a new bank account and attach it to your
    PayPal account to withdraw the money.

    With more information comes more possibilities and solutions. :)

    Hope all will work out for you.
    Unclemike
     
  13. jimijam

    jimijam Registered Member

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    def more to the story. I'm guessing he was kiting.
     
  14. Furious George

    Furious George Supreme Member Premium Member

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    The name on the paypal account is different than the name on the checking account. This bank was not okay with it, and shut you down.
     
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  15. derryl18

    derryl18 Newbie

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    Actually my name matched my bank account and I was verified. The reprensanative on the customer service line said I was using a different ip address that does not match the state that is on my bank account. I had a old pp account with pp before and made a new one with just my alias name which match my bank name as well. And different address that matched my bank. I sold my merchandise and provided PP with the invoices but is not giving them my ssn. So basically im f***! on PayPal end. I check my balance today on my bank and funds are still there and have a direct deposit pending which will be released to my account around 5AM. My checking account is on hold I believe. PayPal states that A business account can only withdrawal funds to a Business bank account. But everything worked fine and all my funds were in my personal bank account on every withdrawal in one week.
     
    Last edited: Jun 28, 2013
  16. Markthedude

    Markthedude Power Member

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    I used to work for a large, national bank and dealt with personal and business accounts daily.

    I feel there is more to the story for sure as they can't simply send the 2100 back to PP and close your account and keep the 6000. I know for a fact that they can't simply take your money like that otherwise you honestly could sue them.

    From the little you have said here is what I think is going on.

    You have a business paypal account and are trying to deposit business funds into a personal account, first red flag, you can't deposit funds made to a business into a personal account. Paypal is the middle man, not a second bank. Paypal has received money for a business and is holding the money (not like a checking account) and when you try to deposit that money into a real bank it needs to be an account with the business name on it, if you're self employed and don't have any type of business structure then you must tell the branch manager and they will add the name of your "business" to your personal account.

    You can deposit money written to you personally into a business account but you cannot deposit money written to a business into a personal account. It's a federal law and basically it's so that government can track business income (among other things).

    I still don't believe that they closed your account and kept the money that was already there, at worst they froze your account for the suspicion of money laundering or something of that nature.

    Talk with a branch manager, explain the situation, they'll tell you that you need a business checking with proper business forms EIN if you are structured of SSN if you are self employed.

    Anyways, welcome to banking and don't freak out, just try and stay calm and be 100% honest with your banker or the manager. Truth be told the nicer customers always got more help so don't go in ready to fight as you will just be hurting your cause. But if you honestly can't get support from you local branches look up the regional manager for your area/bank and contact them, they handle customer complaints too.
     
  17. Markthedude

    Markthedude Power Member

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    You edited this and added more information before my first reply.

    The verification process to effectively determined that you're depositing into a business checking isn't exactly full proof and odds are they didn't really know it wasn't a business account until a manual review took place i.e the different IP story.

    Again, if you don't have a business structure (LLC, INC. etc) get your "business" name added to your personal account and get Paypal on the phone and tell them that you have an account now. Otherwise get the proper forms together and open a business checking.
     
  18. derryl18

    derryl18 Newbie

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    Best two post/answers I have ever received on this forum and feel better now. I was depressed and frustrated all day. If I get my business name on my personal account can the bank unfreeze or release my account back to me? I don't want my bank to transfer the funds back to PayPal. I know my PP account is about to close and would hate to wait 180 days if the funds were to transfer back. When I go inside a branch do I ask for the manager? Thanks a lot and thanks to all who answered and took your time to write and help me out.
     
  19. PyronixUK

    PyronixUK Newbie

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    This dosnt really make much sense because in theory your using your PayPal as your business account and only drawing down a wage/dividend to your personal account so why would you need a business account to pay your personal distributions into?
     
  20. Markthedude

    Markthedude Power Member

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    The only way they will allow you to put the "business" name on your personal account is if you have no business entity formed, so that means all your money is being earned under your name and your SSN. If the bank has already started the transfer back to paypal there isn't much that can change that.

    I would ask for a manager immediately.

    You have to remember, paypal is not a bank, it's simply a middle man there holding your money. It's not seen as wage/dividend withdrawal when you take from the account and that's why you have to have a business account tied to it. There are ways to spend the money without withdrawing it such as using the PP debit card but that route negates that point and issue of withdrawing to another account. Once again, since PP isn't a real bank the money that is earned from your business and is in PP is still in theory like a check written out to the business and so in order to get the funds you must deposit (in this case withdrawal) that money into a business account with a real bank. Once the money is in a real bank then you can do wages and anything else you want since that money will successfully be recorded against the business. It's all one large tracking game for the IRS/Government.
     
    Last edited: Jun 28, 2013
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