posted on September 26, 2002 10:38:51 AM newBeginning in February 2002, the Company deposited all U.S.-based customer funds not transferred to the Fund in non-interest bearing FDIC-insured bank accounts ("Agency Accounts". The objective of this strategy was to obtain pass-through FDIC insurance for individual PayPal users covering their PayPal balances. Accordingly, nearly all of this revenue source ceased in February 2002.
As these customer funds have been transferred into non-interest bearing accounts, the Company's revenues from interest on funds held for others in future periods will decline. For the period from inception to December 31, 1999 and for the years ended December 31, 2000 and 2001, these revenues represented $0, $2.0 million, and $3.8 million and 0%, 14% and 4% of the Company's total revenues, respectively. As a result, substantially all cash and investments held for the benefit of customers and the associated liabilities will be removed from the Company's balance sheet in future periods.
posted on September 27, 2002 04:12:10 PM new
[Allegations in a law suit, does not make it fact. As example, it is a documented fact that NO interest accrues, as funds are kept in non interest bearing account.]
A documented fact hummmm... As of what date ?
[Beginning in February 2002, the Company deposited all U.S.-based customer funds not transferred to the Fund in non-interest bearing FDIC-insured bank accounts]
Oh so as of just recently....
Paypal has been in business for SEVERAL years and have been accused of wrongfully freezing funds to make money off of and then as of 2002 they stopped ?
So they were making money off of wrongfully freezing accounts prior to Feb 2002 ?
Are they going to pay back the account holders funds who they profited off of prior to 2002 ?
I had Paypal freeze my account with no reason given prior to 2002 and I saw no interest on the days they froze my own funds. Where is my money Paypal ?
Should we let killers out of jail just becuase they stopped killing ????
posted on September 27, 2002 04:54:45 PM new
LOL...BOY...SOME of you all are rough on ole Fluffy....I suppose she is just opinionated?....She does post a lot...but hey?...Free Country...Right?
posted on September 27, 2002 07:09:15 PM new
Anyone with a money market fund account would earn their interest. I do believe you will find the law suit was filed after they stopped earning interest on all funds.
PayPal has always treated funds on deposit and any interest earned in accordance with the terms of use.
(Kev, if you don't have the MMF account, you do NOT earn interest.)
. The objective of this strategy was to obtain pass-through FDIC insurance for individual PayPal users covering their PayPal balances. Accordingly, nearly all of this revenue source ceased in February 2002.
