Comments on: PayPal hit by class-action suit

Disgruntled customers have filed a lawsuit over the way the company locks people's accounts if it suspects that fraud played a part in a transaction.

[doanc]

I wish I know about Ebay and Papypal scam. I sold my 1st product. They pay me. I sold the 2nd and 3rd product. They frozen one product at 10% till Oct 2009. The second product they put a hold.....maybe be frozen too after all the reading about the lawsuits and complaints the Ebay and Paypal is getting....If they don't release my hold profit in 21 day. I might join the lawsuit myself.

[bethd88]

I was unable to get my money back from paypal for product I ordered and didn't receive from sneakerworldwide.com (joel lopez). I eventually filed a claim with my bank, and received the money back from them... paypal should be held accountable for their unethical actions, and their horrific customer service. I would be willing to participate in a class action suit against them. I have email proof from vender stating a I would get a full refund after the product I order could not be gotten by sneakerworldwide.com, which should have been enough for paypal to retrieve my money from their merchant. My email is [e-mail]

Re: Paypal's "Rolling Reserve" Is anyone dealing with this new unethical act?
Aug 25, 2009 7:03 AM

PayPal is actually taking sellers money and keeping it for 60 days. PayPal knows no ethics in its business. The U.S. Government needs to step in and regulate this rogue company or they will continue to exploit customers and their assets. They prefer the words Rolling Reserve, but theft is more accurate. Does your bank dip into your account on a rolling basis and take out whatever they want for the next 60 days? Several past presidents Ben Franklin are being held hostage in customers' accounts all across America, in fact, the world. Are we going to let another country take the first step in controlling the PayPal syndicate?
Today I think I will hand a bank teller a note stating, "This is not a robbery. Just give me all your cash and I will give it back in 60 days and take new money from you at that time." * Report

Rolling Reserve can be defined several ways
1. Tying up customer's money in order to use the combined assets for investment purposes. Time is money.
2. Theft as a sixty day cycle, the speed of which allows for lucrative investment of other peoples money while they are unable to access it.
3. Bank robbery where the bank robs its customers.
4. A breakdown of ethics that keeps repeating itself until another one is found to follow suit in financial empire building.
5. A democratic use of theft that affects everyone equally on a cyclical basis.
6. Taking advantage of a large group of people that are first made to depend on your services. This always involves money. (cf. Madoff economics)

[925_SOLID]

PAYPAL REALLY SUCKS! I WON'T GO INTO THE ISSUE BECAUSE IT'S IRRELEVANT CONSIDERING I'VE READ HUNDREDS OF OTHER SIMILAR COMPLAINTS, IF ANYONE HAS LAWYER AND OR CLASSACTION COMPLAINT AS WELL PLEASE LET ME KNOW ; [e-mail] I'M READY TO GET MY MONEY BACK PLUS THE PUNITIVES.......

[sanfrancisco944]

Today Paypal decided to Shanghai $2000.00 of my hard earned money in eBay Sales where all of my items had already been Shipped with Tracking. Spoke with Paypal Customer Service today ---they felt it was "Suspicious" and in the Best Interest of all Party's Security to freeze my assets---Hogwash! It's bad enough that eBay and Paypal take a large chunk of Seller profits in fees and force shipping fees that don't cover Shipping Costs at all. It's time for Sellers and Paypal Customers to join en masse and stick it to the evil giant. Remember People it's our money that keeps them in Business. Paypal is Criminal I would love to join a Class Action Lawsuit, etc. Tired of being ripped off by Banks and Big Business. My time, hard work and money are too valuable esp in these hard times.

Any Lawyers out there please contact me--- would love to fight back, I want my money back now and I want big money compensation for the grief Paypal has caused me.
Help!
Frustrated Citizen
San Francisco

[sanfrancisco944]

btw my email is [e-mail]

[sanfrancisco944]

In Reply to CNET Article with Paypal CEO Thiel

PayPal at a crossroads?
http://news.cnet.com/PayPal-at-a-crossroads/2008-1082_3-863099.html?tag=mncol

There's nothing new with Thiel's Rhetoric. Just Google "paypal lawsuit" and read all the comments of honest hardworking Citizens that have been Raped by Thiel and his Band of Paypal Thugs. The honest truth is Paypal is taking money from many people everyday and stealing (they call it freezing, etc in the name of "Security") it anywhere from 21 days to months to the poor soul never seeing their money again. Paypal functions like a corrupt banking system (not money transmission as Thiel suggests many times throughout this interview). Well Thiel your Facist unethical Rule might be ending soon and YES expect many Class Action Lawsuits in the near future.. That's Right Good Citizens that have been ripped off by Paypal everywhere are pissed!

[tmthysttn51]

I also am an e-bay / PayPal customer, buyer and seller. I have been associated with them since 2001. I recently began selling on ebay and using paypal for my transactions. I sold almost $23,000. in consumer electronics in about a week when PayPal froze my payments and then ebay suspended my account because they then couldn't get their listing fees because paypal was their money source for my account.

PayPal froze my account because they thought it was suspicious that I could earn that amount of money in sales in such a short time. But I was selling cell phones and car audio as well as computer hardware...ie, AMERICA'S MOST WANTED!!!

I spent six weeks searching for what consumers were buying and this was my conclusion and it was paying off.

My conclusion now is that E-bay and PayPal is a monoply bigger than Bill Gates and Ma Bell and definately needs seperated. If the courts do not step in here, then America is way dumber then I ever thought!

[BobbyGreen2008]

Oh yes, the Grim Reaper is finally coming for Paypal.This is looooonnnnggg overdue! I have been following these threads about paypal and ebay for almost a year because of my own troubles with them.I do have to say,and I hope everyone here remembers that EBAY is RUNNING PAYPAL!!! Ebay owns paypal!! The Grim Reaper will hopefully soon come for ebay!! This BS of sellers only accepting paypal is all the BIG plan that ebay had from the begining. They got all of the ebay users,buyers and sellers,familiar with paypal over the years and then it was time to stick it to everyone.They think they are out of the Anti Trust Monopoly shadow because they offered 2 other UNKNOWN options for payment like ProPay and some other I cant even remember,and nobody uses the other options because of ??? Because they are unknown!!! Oh, well why not use Google checkout? Oh,because we all know who that is and it would compete against EBAY !!! HA !! They tried pulling the wool over all of our eyes but it wasnt thick enough,we can see through it. I refused to use Paypal and even put in the first line of my auctions "WE DO NOT ACCEPT PAYPAL" and then my item description.I then have buyers bidding on my items anyway and try to use paypal!!! They refuse to send payment in the form of a Postal Money order that I have accepted since 1998 when I first started using ebay. Here's where it gets interesting......I file an "Unpaid Item Dispute" and go throught the process of waiting for 10 days to get my "final value fees" back and I do,and the buyer gets an "Unpaid Item Strike" right? Well I checked the history of these transactions and EBAY REVERSED the UNPAID ITEM STRIKE for everyone of the buyers that didnt pay !!!!! What kind of BS is that !!?? oh you poor babies,they wouldnt accept paypal for your purchase? well here's some candy for you (reverse the unpaid item strike) I have also been losing sales because I dont accept paypal. I know better because of the horror stories I hear of sellers having their accounts frozen and being ripped off,and you know what ? I have never ever ever in 11 years of accepting payments by check,bank check or money orders from buyers on ebay,been ripped off.Even as just a buyer in the begining,I received every thing I ever won.I had a few small problems with items not as described but the sellers made it right with me,all except 1. Yes,I know the scammers have infiltrated ebay over the past few years but thats because ebay let them.
Ebay is next on the chopping block and I cant wait to see it.I might even show up to the court proceedings to watch them burn!!!
I love it!!!
I also honestly hope every person who has been burned by paypal gets PAID from the class action lawsuit.I have a good feeling paypal is going to lose BIG TIME. :o) The key to all of this from this day forward is to NOT USE PAYPAL OR EBAY ANYMORE!!!
Stop feeding the lion that is trying to bite you and it will eventually DIE.
Good luck to all :o)

[gata311]

I would love to be part of a suit with paypal. I have had several things happen with paypal from losing money and merchandise from paypal and ebay . I recently had a fraud charge on my account and I called immediately to paypal and was assured by them that the charge was pending and nothing would be completed and not to worry. We the next evening I logged into my bank account which I have linked to my paypal and to my horror the charge went through causing my account to be extremely overdrafted. Now it is three days later and I still have checked drawn on my account and I will be even more overdrafted. So much for the 100% protection they claim on there site. If anyone is filing a claim please let me know. I am tired of paypal. I can't close my account. I am in violation of the user agreements to try to close my account and that have access to my bank account and other credit card from my bank as long as they want.

[lovelylucyann]

How do I join this suit. Please let me know because they are really jerking me around and holding my funds.

[glosol]

TO PAYPAL: I would like to express a bit of discontent, frustration and anger. I am certain my message is not the first PayPal has ever received. The problems I seem to be having are not unique. I am noticing more and more sellers that refuse to accept PayPal as a payment method every day, so have to ask myself if this service is right for my future business plan. Here is my example and frustration. It is not my fault that PayPal has had to deal with fraudulent activities and I do not agree with being punished for other people?s actions. I also have not agreed with this policy in any way and contest how it can be enforced if not agreed upon when I became a PayPal user.
1. I list and successfully sell an item on EBay.
2. The buyer sends their payment for the item they won
3. The payment is made and received in a timely manner, including the shipping and handling amount.
4. PayPal places a HOLD on the payment for ?UP TO 21 DAYS?
5. (Here is the good part...) PayPal decides to go right ahead and remove their share of the profits made.
6. The hold on the funds is still in effect and "shall remain in effect" until the buyer responds with positive feedback OR a pre-determined period of 21 days has passed.
7. This directly affects the seller?s ability complete the auction. The positive feedback requirement is impossible to receive for an item that the seller is unable to send. (See line 8 for explanation of why seller is unable to send)
8. The seller is unable to send because PayPal continues to hold the shipping amount, which should be by all rights a completely separate transaction
9. In my specific situation, I am questioning if this practice is even remotely legal at all due to the fact it was implemented AFTER I began using the service.
In my auction listings, I typically set a three day handling time. The direct effect of PayPal holding funds for items I have legitimately sold is simple to understand.
1. Seller is now responsible for paying to ship the item. I was recently just barely able to come up with the proper shipping amount to send an international item. PayPal now forces the seller to provide the money to ship the item as an "out of pocket" expense, even though the shipping amount has been fully paid for as part of the completed auction. There is absolutely no reason whatsoever to hold the funds set aside for shipping. Why? Because if the buyer was to ask for the refund and the postage had been previously paid for it would not be the sellers responsibility anyway. There would be no refund for the shipping. So why hold it at all?
2. Seller is potentially required to make the monthly account payment to EBay as an "out of pocket" expense because PayPal is holding funds.
3. Due to items that are unable to ship to the buyer in a timely manner (again because PayPal has a hold on the account) the seller is forced to receive negative feedback reports for each slow transaction.
4. These negative feedback reports directly affect the search engine standings in EBay, destroys any sort of positive reputation or buyer / seller trust that has been earned for at the very least 12 full months, confidence for the seller lowers making it less likely for buyers to even make bids on items from the seller, with less buyers bidding, the value of the listed item is lower than it should be. Any of these reasons listed are a serious concern for the seller because the actual profit margin has been reduced.
5. The seller is expected to risk the buyer requesting a refund due to any loss or damage during shipping, especially in situations when the buyer is fully aware that they might just get something for nothing? and then get reimbursed on top of that. A buyer can easily say the item was never received, have their payment returned and keep the item in question too. The seller gets to eat their loss not once, but twice? This does not seem like a good policy.

[glosol]

TO PAYPAL PART 2:There are other points of impact to discuss as well. In the big business picture, a 21 day hold on my account alone is small, until multiplied by the number of accounts this type of hold currently or potentially effects. PayPal has given itself the perfect situation to NOT ONLY hold a staggering amount of your customers cash, PayPal gets to do it for free. When combined with the easily mis-interpreted and vague reasons PayPal lists to place a hold on someone else?s account (without their discretion), PayPal has actually found a method of controlling the flow as needed. Simply change your policy again and easily raise or lower the floating value of PayPal. Since PayPal has determined that this policy is officially a hold for the buyer?s protection, it probably has not raised a single question about exactly what that dollar amount is doing for those 21 days.
A loan assumes the control of a financial service. You have control of my funds in every way. It is not any different than a loan one would receive from their lender,
EXCEPT?
I have not authorized this account transaction. No contract or suggestion of paying interest to the account holder has occurred. This has just ended definition as loan and stepped up to Felony Theft.
Since I have not EVER in any way allowed this illegal hold and have requested the hold on my rightfully earned money be immediately lifted, you are now facing criminal charges of THEFT in the State of Oregon, which for amounts over $750.00 constitutes a first degree felony charge. We in Oregon have guidelines for theft. Specifically the mandatory minimum guidelines. This means that for each and every single theft charge you are found guilty of you will do 13 months prison time, multiplied by the number of customers in Oregon you currently hold amounts over $750.00. Who wants to step up and do the time?
Unless the hold placed on my account is lifted, first thing Monday morning I will be submitting a complaint with the Department of Consumer and Business Services Division of Finance and Corporate Securities, as well as consulting with Oregon State District Attorney?s Office to determine if my situation should proceed to criminal proceedings.

[pltdcnet]

RIPPED OF FOR $4000 BY PAYPAL. 100% EBAY FEEDBACK NOT ONE COMPLAINT.

-FILED COMPLAINT WITH FEDERAL TRADE COMMISSION ONLINE
-FILED COMPLAINT WITH NJ DIV OF BANKING
-CONTACT YOUR SENATORS FOR YOUR STATE, THEY WILL HELP YOU
-FILED LAWSUIT IN COURT WAITING FOR COURT DATE

PAYPAL ADVERTISES ON EBAY IS CONSUMER FRAUD AND DOES NOT TELL YOU THAT THEY CAN HOLD YOUR MONEY FOR 180 DAYS FOR BOGUS REASONS. PAYPAL IS A MOCKERY TO THE US BANKING SYSTEM AND SHOULD BE UNDER THE SAME RULES AS BANKS. HOW MANY MILLIONS ARE BEING HELD?

[tboodro]

I've been reading some major horror stories online, which has validated my decision not to verify by giving them my bank acct info. I have been using PayPal for a couple of years to buy things (mostly from Ebay); my AX card was the CC to which it was linked and there's never been a problem, the card has never been denied. A couple of weeks ago, I purchased a halloween decoration on Ebay and went through the payment system and was AMAZED AND HORRIFIED to see that PayPal wouldn't finalize my transaction because I hadn't provided them with my bank acct info. AND the seller ONLY TOOK PAYPAL, which is apparently a direct result of Ebay's new Nazi payment policies. AND I called their pitiful customer service number, getting someone in Bombay who was totally worthless; bottom line: either I give them my bank acct info (isn't that EXTORTION?) or try to qualify for a PayPal credit card (WHY? Since my AX has worked just fine for 2 years) which I was also denied (WHY, again?). So, they've got their racket all sewed up and I had to jump some major hoops to get my item paid for.
Since I can't really claim damages (thank god I didn't give them the bank acct info!!!), I can't join a class action lawsuit, but isn't there some sort of federal commerce law or laws that they are breaking? Would love to do whatever I could to help break up this fledgling monopoly.

[trizle11]

I am in the procceses of talking to the lawyers Jacoby & Meyers who opened the first suit that got the settlement against paypal. I had 2 family members accounts who were not linked closed with no reason and over $20k in the accounts. I fall directly under the same reason paypal was sued for last time. I have the money for lawyer fees and I have a decent amount of research on paypal that I feel confident in this lawsuit.

I am looking for people in the same position as me who have had their accounts closed with no explanation and then asked to wait 180 days for their money to be given back. I have talked to the head of the legal team of paypal and have that direct number and I am willing to share this information at the right time to get our matter across.

What I need you to do is email me at [e-mail] with how paypal has wronged you how much they took and if you are willing to go along I am not asking for any money at all.

Last suit found here http://news.cnet.com/PayPal-hit-by-class-action-suit/2100-1017_3-842240.html?tag=mncol was settled for 9 million.

[johnsonfan1970]

i have had the same thing happen to me,for no reason they lock my account where i cant withdraw money or recieve money until i send them a copy of my drivers lisence and ss card,how can i join the suit.

[OhSnapYouAreFullOfCrap]

Unfortunately for me I waited to long to investigate PayPal. I had a bad feeling about linking my bank account, but figured as big as they are they have to repuatable... All I can say is yea they are reputable alright!!!

I have printed off emails from PayPal and I'm heading to my bank as soon as my kids finish getting dressed. No More Paypal... You won't do this to me again and you will be giving my money back!! On the bright side, I feel fortunate that I only lost as little as I did.... compared to many others...

Class action anyone?!!! I'm hitting up the FTC and my local Senator. This kind of behavior and unethicalism will not be tolerated.

[dcook04]

Count me in on the law suit.They're holding $750 of mine ,and product was delivered and received.Ridiculous!

[jdbrison]

Class Suite, [e-mail]

Jorvon Brison, Detroit MI
Ebay Seller