Not upheld: unfair holds on funds / account suspension complaint against eBay Commerce UK Ltd

Decision detail

Summary

Mr E complained that eBay Commerce UK Ltd unfairly placed a 170-day hold on his marketplace balance after his selling account was suspended by eBay Marketplace due to risk concerns. Mr E argued he had provided delivery evidence for disputed items and that the hold was unjustified and caused him financial hardship. The ombudsman found that Commerce fairly applied its terms in placing the hold, as it was a proportionate protective measure given that payment disputes can be raised up to 180 days. Although the hold affected Mr E's cashflow, the ombudsman determined this was a consequence of a fair decision and did not uphold the complaint for compensation.

The Ombudsman's reasoning

The ombudsman found that Commerce fairly applied its terms in placing the 170-day hold. The hold was justified because disputes can be raised up to 180 days after payment depending on the payment method, and the hold protected both Mr E and Commerce from potential claims. Commerce's decision to release funds after 95 days when risk had lessened demonstrated fair application of its terms. While the hold caused financial hardship, this was a fair and reasonable protective measure, not grounds for compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website