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Another California Class Action Suit against PayPal

Judging by the number of class action suits filed against PayPal, as well as by the information we receive from attorneys who prepare for filing class action suits, the company is in deep legal trouble.

As reported by By Troy Wolverton , Staff Writer, CNET News.com on February 21, 2002, a class action suit has been “filed Wednesday in California Superior Court in Santa Clara County [.The] suit charges PayPal with illegitimately restricting customers’ access to their money. The suit asks for an unspecified amount of damages. PayPal frequently locks customers’ accounts if it suspects that fraud played a part in a transaction, even if the amount in doubt is a fraction of the total amount in an account, said Gail Koff, an attorney and founding partner of Jacoby & Meyers, which filed the lawsuit. The result is that customers can’t accept any more payments via PayPal, pay anyone through the service, or withdraw any of their money until PayPal clears the transaction. That can often take days or even weeks, customers charge. ?Under the guise of needing to protect consumers from fraud, they themselves are guilty of fraudulent abuse of their customers,’ Koff said.”

The website of Jacoby & Meyers is:


Their standard email address:


As stated on their website, one can call them toll-free:

“If you would like to contact us by telephone, please feel free to call our toll-free phone number at (800) 97-LEGAL or (800) 975-3425. ”

They also offer an appraisal of your chances over the Internet. I guess that such initial information will not be billed. From their site:

“Are you wondering whether you should contact Jacoby & Meyers about your personal injury matter? Why not let Jacoby & Meyers appraise your claim over the Internet! Another innovation at Jacoby & Meyers is our Instant Interview, which can quickly appraise your claim and determine whether you should get in touch with a Jacoby & Meyers attorney.”

Posted: April 20, 2012 at 12:40 pm


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3 thoughts on “Another California Class Action Suit against PayPal
  1. Hugo Chadwhick on

    Pay Pals customer service sucks and they are true thieve, I’ve file for a class action suit but we shall see how this goes. I want justice against pay pal.

  2. Loretta Miller on

    have been on paypal and ebays for years. I had a business of over the counter orthodontics which paypal determined I sold to much and blocked my account. I sold my business and went dormant for about 2 years trying to sell my home in Florida. Recently,I took a class on net on drop shipping .. in fact this was a former Ebay person who gave these lessons and he instructed on dropshiping with Ebay and PayPal. What is not in writing is that the Managers of Paypal make the choice if you are to continue that business or they put you out of business no matter what and dip into your bank account at will. I was just about to order the phones when paypal froze my account and forced me to refund everyone. Lucky I didnt send these phones out or I would have been in the red.
    I called paypal and forced them to remove the block that was blocking my money with a threat of a Federal Law Suit. They have broken Federal Laws in transaction regardless of the fact they are a private company they still have to answer to the Government. They refroze the next day $14.00 and stated too bad if I cant ship out items that were paid for even though their own rules state the money for shipping is released , This is on there site. it says
    “Can I pay for shipping with money in my pending balance?
    When you print labels and pay for shipping through PayPal or eBay, the cost of shipping is released from your pending balance shortly after purchase. Printing labels on PayPal and eBay is free. You pay only the cost of shipping the item.”
    Now these are their rules and I threw in their faces. I was lied to by a Nathan42399, Kisten42459 and Jamie 41816. Nathan called me a thief and was condescending Jamie was patronizing and insulting Kristin was a wacko. Now I’m suppose to be contacted by the exec service for this matter of defamation.
    Besides doing a class action law suit I suggest everyone call their congressperson and demand a congressional investigation on Paypal and Ebay.Time to Occupy Paypal and Ebay

  3. Daniel Graves on

    I have used Ebay and Paypal for years. I have never had a case of complaint against me. However, I start a new business and I am making money with it, and they freeze my account. When I called to ask why, they can’t give me a specific reason except that I had a spike in sales. they have cost me thousands of dollars in refunds, because that is the only option they left open on the account. I have driven a truck for 17 years. I am tired and ready to get off the road. This was supposed to be my avenue, however, they are tarnishing my reputation before I can even get it started. There is a balance owed to me in the account, but they will not let me have it. They say they can hold it for up to 6 months. I asked them if the balance was mine. They said yes, the balance that is in there, belongs to you, yet they will not give it to me. How can they get away with that. Who is the thief here? I will not be using either of their services again. the problem with this, is the company that powers my website only accepts Paypal as their emerchant. I don’t not think that what they are doing is legitamate. I have complied with every request they have asked for. More info, on my suppliers, etc. etc. Yet they still will not release my funds, or unfreeze my account. I am in compliance with their requirements and policies. So, why want they release my account? This is like highway robbery. There is no fraudlent actions going on from my part, it is them. They have no reason to do this.