PayPal should ask for SSN at signup or not at all

I have received a message from PayPal saying that, because I MIGHT have enough transactions through them to generate a 1099-K, that I have to provide them with my Social Security Number. I know the threshold ($20,000) and will be sure to NOT exceed it. I have told them this, and they still insist on having my SSN.

Meantime, they have limited my account so that I can not receive payments through them. Obviously, I do not want to provide that number and this is something they should have asked for when I signed up and I could then have decided if I wanted to provide PayPal with my SSN or not. Now they are holding my money hostage in exchange for my SSN and this is not fair.

Posted: August 6, 2014 at 6:52 pm


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2 Responses to PayPal should ask for SSN at signup or not at all

  1. Gregory F says:

    OMG! This is exactly the reason I have sworn off of these scheming pieces of shit. I used Ebay as a means to make additional money on things I either wasn’t using or didn’t actually need and it just became more or less a hobby for me. I had built up 100% positive feedback both as a buyer and a seller so that encouraged me to sell more, making it a rather profitable past time. I did this for 2 years up until two days ago when, out of the blue, my account had limitations imposed on it. How did I find out? During an invoice due that day of something very important to me that I now was unable to pay for and thus had to be cancelled. So naturally I look at the reasoning and it was something asinine about the amount of money I had generated over the course of July that had been sitting in my account. So I went over to the resolution center to see what was necessary to fix my account when I was greeted by a wall of text, wanting everything from my SSN to freaking utility bills to prove my identity. I obviously was extremely irritated by this and called these assholes only to told that I had to provide everything listed or my account would still be locked. I talked to 5 different representatives to try and see whether there was another more safe option but no, I JUST HAD to give them my most important documents that if compromised would ruin me, so they could confirm my identity for no reason. This is bullshit, if they needed this in order to confirm my identity, It should have been requested when I made the account. Why was just my credit card number, address and a name valid to start one but the moment I have serious money in the account I have to trade them my SSN? I loathe this bullshit company and all who support such an egregiously backwards policy.

  2. ANN says:

    Going through same crap (AGAIN) with PayPal so I began an extensive search into their right OR LACK THEREOF to demand SS#: Here is the Legal Document I will be filing and sending them: Taken from: http://www.mind-trek.com/practicl/tl17b.htm
    CONSTRUCTIVE NOTICE
    To: _________________________________________________________
    (Person being served)
    Of: PAYPAL_________________________________________________________
    __________________________________________________________
    (Name and address of Institution)
    You are being made aware by this Constructive Notice that it is a violation of Federal Law to refuse to:
    (a) Open OR Deny Access to an existing account) a non-interest-bearing bank account if the party wanting to open the account does not provide a social security account number or a taxpayer identification number; or
    (b) To provide your services to a client or potential client because the client or potential client does not provide a social security account number or a taxpayer identification number.
    You personally, and the Institution you represent, may be liable for damages and attorney’s fees.
    In accordance with Section 1 of Pub. L. 93-579, also known as the “Privacy Act of 1974,” and Title 5 of United States Code Annotated 552 (a), also known as the “Privacy Act,” you are being informed of the following:
    “The right to privacy is a personal and fundamental right protected by the Constitution of the United States. You may maintain in your records only such information about an individual as is relevant and necessary to accomplish a purpose required by statute or by executive order of the President of the United States.”
    Section 7 of the Privacy Act of 1974 specifically provides that it shall be unlawful for any Federal State or local government agency to deny to any individual any right, benefit, or privilege provided by law because of such individual’s refusal to disclose his social security account number.
    “Right of privacy is a personal right designed to protect persons from unwanted disclosure of personal information…” CNA Financial Corp. v. Local 743 515 F. Supp. 942.
    “In enacting Section 7 (Privacy Act of 1974), Congress sought to curtail the expanding use of social security numbers by federal and local agencies and, by so doing, to eliminate the threat to individual privacy and confidentiality of information posed by common numerical identifiers.” Doyle v. Wilson; 529 F. Supp. 1343.
    “It shall be unlawful for any Federal, State or local government agency to deny to any individual any right, benefit, or privilege provided by law because of such individual’s refusal to disclose his social security number.” Doyle v. Wilson; 529 F. Supp. 1343.
    An “agency is a relation created by express or implied contract or by law, whereby one party delegates the transaction of some lawful business with a more or less discretionary power to another.” State Ex Real. Cities Service Gas v. Public Service Commission; 85 S W. 2d 890.
    If the Institution you represent is a Bank, you are advised that if such Bank routinely collects information and provides such information to Federal, State or local government agencies, then such bank is an agency of government.
    The 1976 amendment to the Social Security Act, codified at 42 U.S.C.A., Sec 301 et seq., 405(c)(2) (i,iii), states that there are only four instances where social security account numbers may be demanded. These are:
    1. For tax matters;
    2. To receive public assistance;
    3. To obtain and use a driver’s license;
    4. To register a motor vehicle.
    You (PayPal) are advised that a non-interest-bearing account does not pertain to any of the above. Because the account pays no interest, there is no “need-to-know” on the part of government.
    In accordance with the Privacy Act of 1974, whenever an agency fails to comply with the law, the party wronged may bring a civil action in the district court of the United States against such agency. Should the court determine that the agency acted in a manner which was intentional or willful, the agency shall be liable to the wronged party in an amount equal to the sum of:
    1. Actual damages sustained, but in no case less than $1,000; and
    2. The costs of the action together with reasonable attorney’s fees.
    Constructive Notice issued by:________________________________
    Representing:_________________________________________________
    Witness:________________________________________
    Date:_________________________

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