Ebay holding my money ransom

[pvmr1980]

Posted again as answer incomplete.

I have never sold on Ebay until this year. As we are downsizing, I have been selling old items from our loft which we have owned for years or been left by family who have since deceased. These items were purchased with money earnt whilst working and vat paid on the original purchase. Over the year, I have sold just over £1000 which is much needed towards household costs, but due to rules by Ebay on reporting "taxable income", my money (£27) is not being released unless I give my NI Number. I totally object to Ebay policing my account on behalf of HMRC and I'm sure blackmailing a client is unethical and potentially illegal. I understand the need for ensuring a business is taxed, but for a 70 year old clearing stuff out this is appalling. 

The answer I received just directed me to policy.

It did not answer: Why did ebay allow me to continue to sell items knowing it was not going to pay the proceeds from my sale to me; holding them ransom?  If the policy is 30 items, then simply prevent sales over that. 

[craft-modelling-supply]

I can't believe that you have just written this. The law, or legislation if you prefer, is very clear on theft. There is nowhere to my knowledge that legislation or law allows it in the UK.  If you have to have this explained to you, how on earth are you classed as a mentor on this forum?

 If the school bully steals a child's sweets, but offers them back only in return for let's say their phone number (a personal piece of information), do you think that makes it ok? Just because the bully says so?  No, it doesn't make it ok. Not only have they stolen something that doesn't belong to them, they are coercing the rightful owner to do something they don't want to do.

Possibly a poor example but ye gods, I can't believe that you have to have this explained to you. You are blinded by eBay rules. They are not enforceable by law! 

[jonatjonatjonat]

Has anyone against giving their National Insurance number to eBay and had their money held complained to the Financial Ombudsman?

theres a ton of financial ombudsman complaint cases like the below from customers unwilling to upload photo id to clear KYC. frankly, it just needs a case to be seen to get clarity on the situation.

https://www.financial-ombudsman.org.uk/decision/DRN-3742075.pdf

[williamstheterrible]

no but i will be. I have just been collecting evidence to support the complaint.

[jckl1957]

Please come back and tell us what happens.

However, in my opinion, you will be wasting your time.  The example in the PDF is similar to lots of others that a quick search shows up.

Generally (from the small sample I have looked at), the ombudsman finds in favour of Ebay.

Complainants seem to produce vast amounts of what they see as 'evidence' but simply get referred back to the Ebay User Agreement.  You tacitly agree to the User Agreement by using Ebay.

This is from the latest version (May 2025).  It clearly states that, if you don't provide the information required, Ebay won't pay you.

https://pages.ebay.com/payment/2.0/terms.html

Seller Onboarding

In order to use our services, you must ...

• Provide us with all information which we may require for purposes that include: verifying your identity, complying with applicable laws and regulations such as anti-money laundering and sanctions screening obligations, allowing us to manage settlements of your transaction proceeds, and assessing fraud and risk. If you are an individual, this information may include, without limitation, your full name, address, phone number, date of birth, taxpayer identification number, bank account information, and a form of government-issued identification (e.g., a copy of your identity card or driver’s license).
• You understand that we will be unable to settle your proceeds ... if you do not provide or appropriately update us with accurate contact information and other requested data.

[sandradam723]

I find myself in this position and you are NOT stopped from making purchases.

If ebay were moral they would suspend all your sales but this is not the case. They are happy to take your money from sales and hold on to it.

As yet, no-one has told me how long they will hold on to my money or if they will pay interest. 

My tax concerns are between me and HMRC and ebay is simply holding my money from sales in order to force me into giving them my NI number

[jonatjonatjonat]

My tax concerns are between me and HMRC and ebay is simply holding my money from sales in order to force me into giving them my NI number

Which they have to do, as required by.....HMRC

[papso22]

"As yet, no-one has told me how long they will hold on to my money or if they will pay interest. "

a) No-one knows, and;

b) no they won't.

[craft-modelling-supply]

My tax concerns are between me and HMRC and ebay is simply holding my money from sales in order to force me into giving them my NI number

Absolutely correct ^^^^ 

[craft-modelling-supply]

My tax concerns are between me and HMRC and ebay is simply holding my money from sales in order to force me into giving them my NI number

Which they have to do, as required by.....HMRC

No they are not required to force you to give your NI number. They choose to force you!
Ebay has to provide details as requested by HMRC. That is between ebay and HMRC. Ebay could have gone about this very differently, but chose not too. 

[jonatjonatjonat]

............

[williamstheterrible]

Sure Ill update once I've gone up that avenue..

Just to throw another angle at.. putting the whole withholding  eBay balances to one side.. 

The fact is they are also refusing to allow you to close accounts., or terminate your contracts with them.

The factual loop many of us are stuck in is this.

• You wish to close your  account and  request to close it in the eBay console
• It states that has to be approved as checks are performed on your account.
• Your then emailed to say you cant close it while you have current eBay Balance and that your Balance must be at ZERO.
• But you cant withdrawal because its restricted from allowing so. so it suggests you speak to an agent.
• The agent in chat informs you to close your account you need provide your NI in order to release the funds.
• You tell them you wish to close your account because you don't wish to provide your NI and don't wish to sell online.
• They tell you they don't have the power to release your payments and to speak to a supervisor.
• You speak to the supervisor and tell them you wish to close your account
• The supervisor says you cant close your account because you have an eBay balance.
• So you ask the supervisor to release the funds
• The supervisor  say they cant unless you provide your NI.
• You tell the supervisor, eBay can keep the funds, you just want to close your account as you wish to terminate any contract you have with them.
• The supervisor says you cant close your account unless you provide your NI number.
• You explain to the supervisor you wont be using the eBay account anymore, and that by keeping the account open and retaining personal information about you enter into the remits of GDRP (i wont go there yet)
• Rinse and repeat.

So the list starts to grow.

Withholding money to extort NI information.

Preventing account closure to extort NI information.

Using the eBay agreement to financially benefit themselves.

What's next ?

If I don't wish to drive a car on the road, I stop paying insurance, I stop paying road tax.

If I don't want to use my current gas provider I pay my bill or they refund what I'm in credit by and close my account and move to another.

If I don't want to stay with my mobile company, i pay my bill and end my contract.

I don't recall ever being required to provide information they aren't entitled to to do any of the above

So why should I now?

I fully support  that its a choice to provide your NI, for those who are happy to, so respect the choice of those you don't wish to...

As the post said "

Seller Onboarding

In order to use our services, you must ..."  - I DO NOT WISH TO USE YOUR SERVICES

If we don't wish to contract,  accept it.

[williamstheterrible]

But only if you to wish to continue selling!

If you want out there is no legal obligation.

[jonatjonatjonat]

There is if you’ve already sold over £1.740 or 30 items, which if you are being asked for your NI, will be the case right?

at that point it doesn’t matter if you don’t want to sell more, you’ve sold enough to meet the requirement to have to provide the NINO.

if you don’t provide it you are in limbo. As for GDPR. The business would have I imagine a vested interest in keeping your data on file, because you have broken their terms and conditions or still need it to provide your information to HMRC

These back annd forths are getting nowhere really. I think one thing. You are on the other side. You need to complain to the financial ombudsman. That will give you the only response that matters at this point.