>>PayPal isn't a bank unless it complies with banking law<<
Don't tell me, wait, let me guess - you're not a lawyer, right?-g-
Uniform Commercial Code article 1-201(4) - a bank is anyone engaged in the business of banking. This definition is construed liberally. I believe that PayPal accepts deposits of money, and allows the customer to debit these accounts for payment of bills, transactions, and even get cash out using a debit card. They also have money market accounts. I don't know whether that's enough to make them a bank, per se, but I am certain that it's enough to force them to comply with the Uniform Commercial Code for transactions which are the type of transactions banks perform - which is everything they do. I've been reading about things they do that violate the UCC - they're ripe for a class action suit.
>>Your recourse to criminal activity is the police.<<
Police only have jurisdiction within their own area. You've seen enough cop shows to know that. Whenever the cop travels to another city, he's out of his jurisdiction and has no authority.
But what we're talking about here is usually civil fraud. Identity theft is criminal fraud, of course, but you're never going to get reimbursed. If you deal with a credit card company, your losses are limited. Not PayPal.
If you like PayPal, use it. Just be aware that if they file for bankruptcy and keep your money, no recourse. |
