March 14, 2002 1:45 PM PST
PayPal customers sue in federal court
A San Francisco-based law firm filed a federal class-action lawsuit this week against PayPal on behalf of the service's customers. The suit, filed in the U.S. District Court for the Northern District of California, charges PayPal violated the Electronic Funds Transfer Act and unlawfully restricted customers' access to their accounts. Girard, Gibbs & De Bartolomeo, which represents the PayPal customers, is asking for actual damages and restitution, but has not asked for a specific amount.
Last month, a separate class-action suit was filed against PayPal in California Superior Court in Santa Clara County. Similar to this week's suit, that case charged PayPal illegitimately froze customers' accounts. PayPal was also hit with a patent-infringement suit last month that forced it to delay its initial public offering. All three suits are "without merit," PayPal executives said.
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My name is Tom, and I have had two incidents with this company. They have frozen two of my accounts in the past two years. The second time happend this past week where they claimed that a previous account was not paid off after it was and then closed asking me to open a new account. I did open a new account and ran it for over a year. Then the issue came up that the money was never paid, and they froze my new account. I called, and never could get a real response on as to why this was happening. Just got transferred to many other departments. I asked for hard copys of all my personal records and was told that they would not or could not do this for me, as they said we are not a bank, we a service company. I was offerd to call a collection agency, when I told them I did not need to call them the told me there was nothing I could do but pay them the money I allready paid over a year ago. I still cant touch my money, and I cant add money from my Ebay sales into this new account.
HELP ! ! !