Dwolla Warning!

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Euclid

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Despite legitimate use of the Dwolla account (rent/expense sharing) Dwolla has deactivated my friend's Dwolla account and has frozen the funds for more than one week now.
She has provided all the requested documents to Dwolla. Namely the following documents: 2 picture ids (US passport), US address, US phone number, a recent credit card statement from the account that is linked to Dwolla and the SSN.

Dwolla support has been contacted numerous times but no emails nor requests for clarifications are being answered.

I was a big fan and promoter of Dwolla but this incident has changed my opinion dramatically. If you naively believe like me that Dwolla is a Paypal alternative, you might get disappointed.
 
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Instead of using an expensive wire transfer (US Bank -> US Bank), they used the Dwolla account to share the rent. She received the payment and got her account blocked / funds frozen when she tried to withdraw the funds to her US bank account.
No black hat style business.
 
Euclid said:
Instead of using an expensive wire transfer (US Bank -> US Bank), they used the Dwolla account to share the rent. She received the payment and got her account blocked / funds frozen when she tried to withdraw the funds to her US bank account.
No black hat style business.
Click to expand...
I'm sure they're just temporarily suspending the account so that they can verify everything. Dwolla is new and last I heard, they had a total of 12 employees. I'm sure they will get back to your friend as soon as possible.
 
Temporary? It has been more than a week since the account and funds are inaccessible. No financial institution I have ever dealt with does that (not even PayPal) if there is no a good reason (court order, etc). It doesn't take more than a day to verify the identify given the information they have (US passport, SSN, etc).

Also there is absolutely no excuse for the fact that emails are not answered.
 
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No financial institution I have ever dealt with does that (not even PayPal) if there is no a good reason (court order, etc).
Click to expand...

You are right. PayPal does it for 6 months not a piddly week. If it is a new account, they are probably leery of the transaction. Let me write you a check and you deposit it into your account and see if your bank does not put a hold on the account for 7 days? If the account has a low balance, they can very well do this and do this every day to make sure the transaction clears. I have checks held because it is from another state and a personal check. You need to do a little more banking.

There is a toll free phone number you can call also.

Call us: 1-888-289-8744
8AM - 6PM CST
 
Bad check analogy:
A check is not a ACH transfer. It will obviously take some time until a check is cleared. During the verification of the check the bank doesn't deactivate the account and freeze all the funds.

The fact is that Dwolla has for no reason deactivated the account and froze the funds.

The post was meant as a warning for all Dwolla users or users that may consider using Dwolla and believe that they are anything better than PayPal.
 
1 week vs paypals policy of 180 days... Very very similar. BE WARNED!
 
Euclid said:
Temporary? It has been more than a week since the account and funds are inaccessible. No financial institution I have ever dealt with does that (not even PayPal) if there is no a good reason (court order, etc). It doesn't take more than a day to verify the identify given the information they have (US passport, SSN, etc).

Also there is absolutely no excuse for the fact that emails are not answered.
Click to expand...

PayPal is freezing my account with 5000 euro in it for 90 days. Without any legitimate reason.
 
But it sounds bad alright. I hope your problem gets solved soon.
 
Yes after a talk with somebody higher up it has been agreed on that the funds will be released and that the Dwolla account will be closed.
 
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