Class Action Lawsuit Against Paypal For Freezing Clients Accounts



dmnEPC said:
lol big deal After the attorney's take 70% of the pool and then they divide that over a billion gaypall users how much you going to get? The guys that have had this happen will still get fucked. The only thing you could hope for is a change in the gaypals policy. Fuck Paypall
Click to expand...

At this point, I don't even think it's about the money, I think we all just want to see them get fucked.
 
Haven't even heard this shit in the news, so its not that big/important to anyone, this has been going on for years, they will jerk this around for a bit, paypal is backed up a some big dawgs.
 
This isn't the first lawsuit against Paypal for the same thing. Most seem to fizzle out. I can imagine it has to do with the fact that they have endless resources and can keep these lawsuits in litigation for years. I am surprised that any law firm even attempts to go this route. Their TOS is pretty tight.
 
jstover77 said:
This isn't the first lawsuit against Paypal for the same thing. Most seem to fizzle out. I can imagine it has to do with the fact that they have endless resources and can keep these lawsuits in litigation for years. I am surprised that any law firm even attempts to go this route. Their TOS is pretty tight.
Click to expand...

ToS is tight, but they're still disregarding state laws. ToS doesn't mean shit if it is unlawful.
 
Paypal got their FDIC licensing already. So, technically speaking, they will have to follow FDIC rules.

I'm not getting into the complexities of banking, FDIC rules, and all of that stuff, because its just one big black hole of coulda woulda shoulda.
 
mgtarheels said:
ToS is tight, but they're still disregarding state laws. ToS doesn't mean shit if it is unlawful.
Click to expand...

True, but think of it from a legal standpoint. Do you want to fight a company like Ebay/Paypal that has endless resources? I can't imagine what their legal retainer is. Right or wrong, it doesn't make sense financially.

Where is Aaron M. Kelly when you need him?
 
[FONT=trebuchet ms, courier new]
  1. Contacting the Attorney General of State(s) you operate business & filing complaint ( example: California State Attorney General Complaint Form )
  2. Submit a complaint to the Better Business Bureau of San Jose California (click here)
  3. E-mail the US Treasury to let them know you belive Paypal is operating as a bank(((But I contacted the banking commission in their state and mine)))
  4. Contact Paypal via twitter @AskPaypal
  5. Contact AUP@Paypal.com, crme@paypal.com, & executiveoffice@paypal.com for review of your account
  6. Search for a way to contact David Marcus, President of Paypal for 2012
  7. (ADDED): I threatened that I would escalate my complaints unless released.


I did the above and had tens of thousands (1 transaction) released.

[/FONT]
 
Dresden14 said:
[FONT=trebuchet ms, courier new]
  1. Contacting the Attorney General of State(s) you operate business & filing complaint ( example: California State Attorney General Complaint Form )
  2. Submit a complaint to the Better Business Bureau of San Jose California (click here)
  3. E-mail the US Treasury to let them know you belive Paypal is operating as a bank(((But I contacted the banking commission in their state and mine)))
  4. Contact Paypal via twitter @AskPaypal
  5. Contact AUP@Paypal.com, crme@paypal.com, & executiveoffice@paypal.com for review of your account
  6. Search for a way to contact David Marcus, President of Paypal for 2012
  7. (ADDED): I threatened that I would escalate my complaints unless released.


I did the above and had tens of thousands (1 transaction) released.

[/FONT]
Click to expand...
Didn't work for me and typically doesn't work.
 
Here in India at the end of the day Paypal automatically withdraws all your balance to your bank account.

However I don't understand why PayPal enjoys freezing accounts without any solid reasons? I think they can make a lot more money in fees ( span of 6 months is huge) than they can by reaping interest. Also in the former, they will probably be loosing a customer for life who will bitch about them wherever he can. This all dosen't sums up right. Perhaps I am missing something?
 
jstover77 said:
Really? So when was this?
Click to expand...


FDIC Pass-Through Insurance

pixel.gif

pixel.gif
You do not need to keep funds with PayPal in order to use our service. If you do hold a balance, PayPal, as your agent, will place your funds in a pooled account at an unaffiliated FDIC-insured bank or savings institution, which is eligible for pass-through FDIC insurance coverage. Balances held in currencies other than U.S. Dollars are not FDIC-insured.

In the unlikely event that an FDIC-insured bank in which we place your money fails, your balance placed at the bank would be subject to FDIC pass-through deposit insurance coverage, along with any other deposits you hold at that bank, up to a total of $250,000.00 USD. Pass-through deposit coverage is contingent upon PayPal maintaining accurate records and on determinations of the FDIC as receiver at the time of a future receivership of any bank at which we place your funds. FDIC pass-through deposit insurance protects you only against the failure of the bank at which PayPal places your funds, and does NOT protect you against PayPal's insolvency. Through the terms of our User Agreement, we believe that your funds will also be protected from any claims of PayPal's creditors and will be returned to you even in the unlikely event of a PayPal insolvency.

You can access a list of the banks where we place your money here.

Please see the User Agreement for more details on how we handle your money.
Click to expand...
https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/UserAgreement/general/FDIC-outside


Seems like they only insure USD monies.
 
Unbelievable how many people here on the board experienced that shit as well! I had it frozen once when I was in another country and sent money to a local company.

It's about time, glad Complex Litigation Group is taking the challenge!
 
Crisis said:
Paypal to add "You must negotiate directly with us and hereby revoke all rights in a class action lawsuit" to their terms in 3..2..1..
Click to expand...

This hit my inbox this morning...

Paypal said:
Notice of Policy Updates

PayPal recently posted a new Policy Update which includes changes to the PayPal User Agreement. The update to the User Agreement is effective November 1, 2012 and contains several changes, including changes that affect how claims you and PayPal have against each other are resolved. You will, with limited exception, be required to submit claims you have against PayPal to binding and final arbitration, unless you opt out of the Agreement to Arbitrate (Section 14.3) by December 1, 2012. Unless you opt out: (1) you will only be permitted to pursue claims against PayPal on an individual basis, not as a plaintiff or class member in any class or representative action or proceeding and (2) you will only be permitted to seek relief (including monetary, injunctive, and declaratory relief) on an individual basis.
Click to expand...
 
Jon said:
Paypal got their FDIC licensing already. So, technically speaking, they will have to follow FDIC rules.

I'm not getting into the complexities of banking, FDIC rules, and all of that stuff, because its just one big black hole of coulda woulda shoulda.
Click to expand...

This disrupted my happy place.

I've actually gone out of my way to make paypal my main money portal due to them not being a traditional bank. That they couldn't take place in fractional reserve lending meant (to me) that if they failed, they'd have to do it the old fashion way ... going belly up. I slept well at night not funneling my finances to fraudsters.

With Peter Theil's original vision of it being an alternative currency off the table years ago, I had hoped that the new HDIC's would continue on his path. Guess I was wrong.

So what's the difference in pass through insurance and the real thing?
 
You must log in or register to reply here.
Top Bottom