For example, there are quite a few stories of Paypal experiences scattered throughout the internet. Since they are common enough I had assumed Paypal simply operates a very strict fraud detection system. However, there’s one claim I’ve found difficult to believe, especially in the current privacy environment.

The claim is that, for whatever reason, if Paypal or any other financial services company in the US, decides to close or lock an account, they are obligated to keep all the information in that account for a decade including the personal information. And the account holder can no longer modify the information.

Supposedly this is due to meeting some US financial regulation that I’ve not yet found an exact reference to.

Is this actually the case?

  • 2
    Welcome to Skeptics! We want to focus our attention on doubtful claims that are widely held or are made by notable people. Please provide some references to places where this claim is being made.
    – Oddthinking
    Jun 14 at 16:45
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    Would this question be more likely to get an answer at Law.SE?
    – Oddthinking
    Jun 14 at 16:46
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    I think the requirement is 5 years, and only limited information: bsaaml.ffiec.gov/manual/Appendices/17
    – DavePhD
    Jun 14 at 17:29
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    Why do you find it difficult to believe? Suppose someone is conducting criminal activity of some kind, and accounts created for this purpose are deleted or blocked without records being kept? It may be that it was not known at the time, that they were a cover for criminal activity. I think you may have misunderstood what "privacy" means in the context of data. Jun 14 at 17:57
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    @MichaelZ please post the source of the "one claim [you] have found difficult to believe". I would say the legal requirement of 5 years mentioned for EU and US is a minimum but perhaps there is a legal maximum too. Jun 15 at 15:32

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