I used to be the sole director of a limited company (Company A), which had a PayPal account that I can no longer access (PayPal have blocked access to it, so cannot even log in).
Company A was dissolved in August 2016 because it became insolvent.
I am also one of two directors of Company B, which was incorporated in May 2014, in a completely different industry, and we have held a PayPal account in the ltd company’s name since day one.
We decided to clear some stock on eBay in the run up to Christmas, and have just over £2,000 in our company PayPal account, but on Monday evening PayPal limited our account and sent us an email advising the account (belonging to Company B) has been linked to the PayPal account for Company A which apparently owes PayPal some money.
The email suggests that if the money owed by Company A is paid, then PayPal will reinstate the account belonging to Company B.
What I would like to know is, are PayPal legally allowed to hold Company B to ransom for money owed by a company that no longer exists?
I have sent PayPal a couple of emails since Monday advising them that Company A was dissolved two years ago but yet to get a reply, so I was wondering whether it’s worth sending them a letter before action to get our £2,000 released (although I’d much prefer to get our account reinstated).
Company A was dissolved in August 2016 because it became insolvent.
I am also one of two directors of Company B, which was incorporated in May 2014, in a completely different industry, and we have held a PayPal account in the ltd company’s name since day one.
We decided to clear some stock on eBay in the run up to Christmas, and have just over £2,000 in our company PayPal account, but on Monday evening PayPal limited our account and sent us an email advising the account (belonging to Company B) has been linked to the PayPal account for Company A which apparently owes PayPal some money.
The email suggests that if the money owed by Company A is paid, then PayPal will reinstate the account belonging to Company B.
What I would like to know is, are PayPal legally allowed to hold Company B to ransom for money owed by a company that no longer exists?
I have sent PayPal a couple of emails since Monday advising them that Company A was dissolved two years ago but yet to get a reply, so I was wondering whether it’s worth sending them a letter before action to get our £2,000 released (although I’d much prefer to get our account reinstated).
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