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“Class Action Suit Against PayPal”

By Bernd Schneider

Several US attorneys are preparing for class action suits against PayPal. The following is the text of an interview (questions submitted via email) we conducted with an attorney who was considering such a class action suit.

Question:You have indicated that you may file a Class Action Suit against PayPal. What would be the basis for such a Class Action Suit?

Posted: April 20, 2012 at 12:40 pm


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5 thoughts on ““Class Action Suit Against PayPal”
  1. Polis K. on

    six months ago paypal limited my account for ”unusual activities”,that was because I was selling on ebay and asked for documents that it was impossible to send(passport not older than 6 months,tracking numbers and other foolish things).That was to protect any of my customers who bought items from me.Today I received an email that my funds are eligible to withdraw but on condition I will provide the required documents!!What on earth is going on here,they have no right to hold my money any longer

  2. Ben G on

    I dont see any text maybe I’m missing somthing but I do feel that paypal is nothing but a big fat scam. I dont have a business but we set up a paypal account for my daugthers graduation from college, we wanted a clever way for friends and family be able to send gifts and congrats online. Boy did we get in over our heads. It took forever to get our funds released. I was so upset with them, I heard about paypal dicking people who sell stuff around but this was strictly friend to friend payments which there is an option for on their website. I’m glad we eventually got the money owed to us but it def.. wasnt a seemless process.

  3. SyntaraSarych on

    I sold 14 items on eBay in one day. All buyers diligently immediately paid for their purchases. PayPal (as usual) put the funds in a pending status. When I went to purchase the shipping labels for each buyer — doing so through PayPal, PayPal expected me to out-of-pocket the shipping costs for all 14 items while they sat on the money each buyer paid to have their items shipped. I needed what the buyers paid in order to purchase shipping for them. I couldn’t afford to purchase some 14 shipping labels at 10.99 to 16.99 each out of my own pocket all at once. I called PayPal asking to release at least the funds I needed to purchase shipping for each buyer. I got the same cheerful: “You’ll be paid in just three days after the buyer’s item is delivered so don’t worry!” Yeah right. I told them they had the money I needed in order to purchase the shipping for each item. “You’ll be paid in just three days after the buyer’s item is delivered so don’t worry, just ship right away so we can release your funds.” What? Do the PayPal customer reps need to be wound up every day so they can spew the same old thing with little variation. Needless to say, I refunded each and every one of those 14 buyers what they’d paid for both their items and the reasonable shipping costs for same. Boy were they unhappy. One gave me lousy feedback so I might as well bale on PayPal and eBay all together now. Sellers are simply slaves of PayPal who have neither business associate or partner status, nor are sellers legally employed by eBay or PayPal so these entities are free to do as they please with people who try to sell on eBay and for them there’s another sucker to scam every single day. They’d already held my earned revenue once before for so long I missed a mortgage payment. Just who do they think they are to take MY revenue and expect me to pay them on top of it. They can all go EF themselves as far as I’m concerned. No more. Not me. Not ever. They had their chance after the first abuse they handed me. Fool me once, shame on you; fool me twice….

  4. Bob Korsu on

    Paypal fraudulently held $950.00 from my account claiming a a buyer who used a fraudulent email and postal address had a valid charge-back claim. I have been fighting Paypal for 3 months and am getting nowhere.

  5. Rich Trudeau on

    PayPal for any excuse holding my money for make more interest on my money.