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posted by janrinok on Sunday January 16 2022, @03:18PM   Printer-friendly
from the customer-service dept.

PayPal stole users’ money after freezing, seizing funds, lawsuit alleges:

PayPal is facing a class-action lawsuit alleging that the digital payments company violated racketeering laws by freezing customer funds without offering an explanation.

When users contacted PayPal about the frozen funds, they were told they had violated the company's "acceptable use policy" but weren't told how that violation had occurred, the lawsuit says. What's more, it alleges that in at least one instance, PayPal said that a user would "have to get a subpoena" to find out why.

"PayPal violates its own Agreement by failing to provide adequate notice to users whose accounts have had holds placed on them," the lawsuit says. When PayPal does let users know it placed a hold on their funds, "it does not inform such users why such funds are being held, how they can obtain a release of the hold, and/or how they can avoid future holds being placed on their accounts."

It also says that PayPal takes the money for itself after a 180-day hold period. "PayPal's user agreement and acceptable use policy cannot be used as a 'license to steal,'" the complaint says.

[Ed. Note: one of the payment options to subscribe to SoylentNews is through PayPal. We practice safe operations and periodically withdraw funds from our PayPal account and deposit them to our bank account. We use the same technique with Stripe. To my knowledge, we have not had any problems with any of our payment processors.--martyb]


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  • (Score: 4, Insightful) by Runaway1956 on Sunday January 16 2022, @07:53PM (1 child)

    by Runaway1956 (2926) Subscriber Badge on Sunday January 16 2022, @07:53PM (#1213225) Journal

    You'd figure an attorney could semi-automate this process by saying "Whatever information you sent to PayPal, send to us as well, and we'll litigate it for you if they seized more than $1000, flat fee of $150."

    You sound as if you've never met a real lawyer. If a lawyer deigns to listen to you talk for ten minutes, he's going to bill you $150 when he tells you that he won't take your case.

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  • (Score: 2) by krishnoid on Sunday January 16 2022, @08:07PM

    by krishnoid (1156) on Sunday January 16 2022, @08:07PM (#1213231)

    I was thinking they'd reassign it to an intern/paralegal/legal secretary. So yeah, maybe not litigate it, more "send up to two angry letters back and forth on your behalf."