posted on November 10, 2000 09:51:38 AM
X.com--as a financial institution, you do not produce any items or wares for sale. All you pretty much do is hold your clients' money and provide services. What you, or any financial instituion are bascially peddling is trust, trust to clients so we will feel comfortable leaving our money with you.
But obviously over these few months you've destroyed the trust. First with the doubletalk transferred through customer service reps, and then providing a TOS of the day and hiding behind it.
Now by closing X.com, you are attempting to create a financial entity with Paypal that basically provides all the services of a bank but none of the federal regulations and insurance. With your Paypal business accounts, you control the terms and can do anything you want with users' money and change your TOS of the day to fit accordingly, and it does not have to conform to federal law. Take for example, the freezing of an account of someone who received fraudulent money. A rep on this board likened to receiving paypal money as a check (and hence could not be charged nack)....I know my bank wouldn't freeze my account if i deposited a bad check.
As stated before, I hope all your executives are prosecuted and jailed. This is totally unforgivable behavior by a financial instituion. Extremely surprising as well, and disappointing, since you list as some of your investors Goldman Sachs, JP Morgan and deustche bank. Obviously though you do not have their financial savvy.
posted on November 10, 2000 10:24:54 AM
I just made this statement on the parterner services.
Paypaldamon has said paypal debit ATM card will be out at the end of the month.
I have never seen credit cards or debit check card issued by a none bank.
I have a feeling that in weeks to Come you will see X.com back as Paypal checking they will offer personal and business Checking FDIC insured and Issue the X.com visa card with the paypal logo on it.
It might not be frist western national bank but I think some bank must back and garentee there debit atm cards with FDIC insurance.
Remember the X.com sight says they will no longer be accepting deposits for FWNB and all accouts will be closed on dec 1 did not say going out of business.
I think they are closeing out X.com accounts and its posible just before December 1 they will be announceing PayPal personal and business Checking FDIC insured through what bank who knows but they will issue all the Visa debit card X.com use to with the paypal Name on it.
you could auto transfer your balances from paypal credit services to paypal banking services all will be the same name and company and they will be able to show more return and maybe a profit.
remember there Idea is to get you to keep your fund in there account people tend to keep more money in there bank then in paypal many used X.com to keep there money where I might add they never froze funds and x.com offered credit card payment services as well.
this way people who Dont trust paypals NONFDIC insured account even though it pays interest might choose to trust paypal FDIC insured checking they get float and deposits staying either way and users get FDIC garentee.
this is just my thought of something that could be happening
