As many others have pointed out, PayPal goes out of their way to make sure they ...

politician · on Jan 14, 2022

It doesn’t matter. If they aren’t holding your deposits then the underlying bank would place the hold and they must follow the banking regulations.

If PayPal isn’t holding deposits and doesn’t forward the hold to the underlying bank, then go get your funds from the underlying bank or sue them.

FinTech is a stack of companies operating as veneers on the underlying, heavily regulated banks.

oauea · on Jan 14, 2022

Good luck with that. Any links to stories of people who have successfully done that?

politician · on Jan 14, 2022

https://www.paypalobjects.com/marketing/ua/pdf/US/en/synchro...

Look through the disclosures and agreements you signed on account opening and find out which banks PayPal is using for your account. The linked one above is for a deposit account at Synchrony Bank.

oauea · on Jan 14, 2022

Never signed anything.

politician · on Jan 14, 2022

Do you have a PayPal account? If so, I assure you that you signed an agreement. The complaint in this class action lawsuit says that the agreement is a 65-page PDF. You would likely have signed it electronically by clicking an “I agree” checkbox.