PayPal faces lawsuit for freezing customer accounts and funds

Three PayPal users claim that their accounts have been suspended and the money was withdrawn by the company without disclosure filed a lawsuit in federal as opposed to online payment service. The plaintiffs – two users from California and one from Chicago – are accusing the company of illegally seizing their property and violating fraudulent laws. He is now prosecuting the parties on behalf of all other users whose accounts have been suspended in the past and who want to reimburse, as well as the penalties and fine examples.

Lena Evans, one of the plaintiffs who has been using PayPal for 22 years, said the site confiscated $ 26,984 from her account six months after the incident without telling her why. Evans has been using PayPal to buy and sell clothing on eBay, exchanging poker and cash-strapped poker leagues that cater to women with a variety of needs.

Opponent Roni Shemtov said PayPal had forfeited more than $ 42,000 and had not found a legitimate reason for closing his account. He received various comments when contacted by the company: One customer rep reported that he used the same IP and computers as other Paypal users, while another said that because he sold yoga clothes for 20 to 30 percent compared to commercials. But another attorney says it is because he used several accounts, which he refuses.

Shbadan Akylbekov, a third plaintiff, said PayPal withheld more than $ 172,000 from him without explaining why the account had been reduced. Akylbekov used the account of a company owned by his wife to sell Hyaluron pens, which are needle-free pencils that inject hyaluronic acid into the skin. When the money ran out of the account after a six-month suspension, PayPal allegedly sent his wife a letter stating that he had “violated PayPal’s User Agreement and Acceptable Use Policy (AUP) by agreeing to pay for injectable FDA-approved injections.” It also alleged that the money was withdrawn from his account “due to damages resulting from AUP violations under the User Agreement.”

PayPal has angered many users by reducing accounts and suspending their payments for six months or more. Another high-profile case was American poker player Chris Moneymaker who was fined $ 12,000 from his account six months later. Moneymaker was already inside asking people to join him in court before his money came “miraculously.”

Part of the complaint states:

The plaintiffs have filed a lawsuit against PAYPAL Defendant, INC. (“PayPal”) to recover damages and legal aid on behalf of themselves, as well as on behalf of the members of the group described herein … This stems from the Representative’s common business practice of withdrawing money from a customer account for no reason and for no other reason.

PayPal places “hold” of the Defendants’ money in their PayPal accounts. PayPal has failed to inform Opponents and class members of the reason (s) for what PayPal has done, even telling Opponents and class members that they “must get a subpoena” to learn more about the rationale. PayPal was seizing, and denying the Defendants, access to their money. “

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