Class Action Lawsuit Against Paypal

i wish i had 1billion USD..

 

lol dats a big one

 

How did paypal survive through all these years?

 

Paypal actually provides a very good service. Without paypal, I'm not sure if I'd be able to do business online internationally with such ease.

I've been using paypal for years and have never got my account limited or banned. I believe only people who use VCC's and stuff or who involve in fraudulant activity get their accounts limited. Of course, there might be ocassional exceptions!

Remember Paypal has a huge business risk to protect itself from. Consider the following case.

A buys a service from B for $1000
A pays B (credit card funded payment)
B provides service
B withdraws $1000 through bank transfer
A does a credit card chargeback

In the above case who loses money? Not the seller, Not the buyer, Not even the credit card company. Its PAYPAL that takes the $1000 hit. They need to be careful to protect themselves from this huge business risk. Afterall, they are not here to do social service!

 

Do you have any information about how or where to join a class action lawsuit against paypal?
Thanking you in advance! - Rodney Ball

 

I can't believe people are actually even thinking about this. Paypal has been honest for millions of people, hence the reason its the most used on the internet. Good luck with your "lawsuit", but you'll almost need a billion to get it off the ground.

 

DO NOT LISTEN TO THESE PEOPLE. THEY ARE CLUELESS. THEY HAVE NO IDEA WHAT IS REALLY GOING ON.

I've reviewed the comments made on this board and I need to tell you not to listen to these people. It's very obvious that they don't know what they are talking about.

First, Paypal has over 100 million members. Of course there are going to be millions of members who have had a good experience with Paypal; but there are thousands of others that are being harmed daily. So the statements from the person that said they have never been harmed by Paypal is merely naive, self-centered and does not contain a broader view of the problem. Nor does it express an understanding of any problem with Paypal.

Second, the people on this board have no idea what "false positives" are. False positives are created by Paypal's anti-fraud detection software that cause a member's Paypal account to be immediately and wrongly blocked. A false positive is created when the transaction meets certain conditions entered into the "filters" of Paypal's anti-fraud detection software. The problem is that many of these transactions are legal; but Paypal's software treats them as illegal and automatically blocks the account. For example, if someone opens a new Paypal account, buys something and the seller tries to immediately transfer the money out of Paypal's pooled bank account and into their own bank account, Paypal's anti-fraud detection software has been known to block their account. And it doesn't just block the buyers account, it blocks every seller's account the buyer sent money to. The seller could have had his/her Paypal account for years; but they would be blocked because another seller the buyer sent money to immediately transferred their money out of Paypal's pooled bank account. Paypal doesn't tell members about these false positives, and it continues to conceal them because it benefits Paypal from having to pay out of pocket for charge backs if the transaction is reversed by the credit card company and the money has already been transferred out of their pooled account.

So, don't listen to these people giving you this advise. They are absolutely clueless to what is actually going on with Paypal behind the scenes. Even an ex-interim vice president of Paypal, Eric Jackson, stated on the record that Paypal was aware of these false positives and that they were harming people. Mr. Jackson stated that Paypal's position is that the harm done to these people is "an acceptable cost". The question is acceptable to who? The bottom line is that Paypal is aware that it is breaking the law daily and harming thousands of people; but to Paypal, this is an "acceptable cost". And every time Paypal is sued, it settles fast and continues its bad conduct. Paypal has been buying people off to continue its illegal activities.


In the worst case, people have been falsely arrested because as part of Paypal's anti-fraud detection software filters, it sends out automated emails to members informing them that the other party is under investigation for "fraud" or "suspicious activities". Keep in mind, thousands of these people are innocent and have done nothing wrong. Imagine what a person would think when they received that email. For Sarah Holland, a mother of three and volunteer firefighter, her clients, who were police officers, had her arrested and charged with Felony Internet Fraud when they got Paypal's email falsely accusing her of fraud. Matt Miller who works for Homeland Security also had this happen to him. Sherri Frost also had this happen to her and she lost her eBay business that took her four years to build and a client sent Paypal's email to her day job, which caused her to lose her job because they thought she was a criminal. There are thousands of other horror stories, and Paypal is very much aware of them.

There are a handful, an elite few of us that are in the "know" with Paypal. Many of us are already suing Paypal and others are fighting Paypal in other ways. But what is obvious here is that the people who have left you comments are not the people who are in the know.

Here, I'll leave you with this treat....It's a U.S. District Court Order from Judge Fogel that was issued last month denying eBay's motion to dismiss the anti-trust lawsuit against it for scheming with Paypal to corner the market.

Search the internet. If you are lucky, you'll find some of our postings.


COURT ORDER MARCH 4, 2008:
rentmycar.com/images/ebayorder html

 

Do you see what I'm telling you when I tell you not to listen to these people. Like the statement from this guy. It's baseless and absolutely ridiculous.

This is what a lawsuit will cost an attorney to file:

1) $350 for the filing fee

2) $45 for the process server

3) additional court costs are about $200.

If you sue them Pro Se, this is all you pay. If you get an attorney to sue them on contingency, you pay nothing. If you sue them Pro Se and you file as a poor person, you pay nothing. The court will even serve the complaint for you.

You need to call an attorney and speak to them not people on this board. As you can see, their comments are childish, immature and based on nothing more than a "wish, hope or desire" that they are true....good luck

 

Yeah I agree with you.

No-one should listen to your childish, immature and based on nothing comments.

 

The majority of people that get their accounts limited by Paypal are those people that are not following the rules. I'm sure there are exceptions. I have had my account for years without a problem. Except for an occasional phone call from them to verify a transaction, I have processed many sales transactions with them (averaging thousands of dollars).

Trying to skirt their rules ends up leading to accounts being limited. Follow the TOS and you won't have a problem.

Paypal was sued a few years ago and the new rules regarding how long they can hold onto money was a result of that. It really wasn't much of a win. Paypal isn't subject to many of the federal statutes that regulate other industries. Only a few states have made them register in specific business categories.

You're wasting your time.

 

An amusing post. Is it satire? Certainly you are not claiming the OP is innocent after stating here clearly he had 3 accounts which is in itself against their TOS. Despite your long diatribe I don't see anything very relevant to the OP.

Let's say though for the sake of argument these "false positives" are harmful. Paypal has ways to correct these mistakes IF you contact them through the proper channels and provide them with the information they request. Do you have ANY evidence to the contrary? I have never seen anyone with proof that Paypal wronged them....NEVER. I always hear "stories" about so and so's friend.

Ebay and Paypal SHOULD be sued for anti-trust imho BUT that's not what this OP is talking about with a class action.

Lastly..no big company on the scale of Paypal is perfect.

 

I hate it when someone comes in here whining about paypal when they have obviously violated their TOS. In the OPs post you keep saying "i believe, I believe, I believe - who cares what you believe, show us some facts. What did paypal do wrong in your case? As a matter of fact it is people like YOU that cause paypal to be so anal in their rules that sometimes people who haven't done anything against their TOS be their accounts limited. You can't open a new account because yours got limited, and then you operned a third one??!!! If you had just fixed whatever issues you had the first time you wouldn't be here complaining now.

I know paypal is a pain in the *ss - but they have to be because there are so many liar, scammers and cheats out there, they have these rules to protect the honest members.

 

I still think you should do it.Even though they offer a chance to get you $$$ back it takes 180 days who has that time when bills need to be paid? Yes you could send in documents but not everyone has time for that to. And its happens to 1000s of people a month.. So whats going on?

 

PayPal's TOS aren't the law. Simply because someone does something outside of the TOS is no license to hold their money.

When your dealing with consumers that's illegal and with decent lawyers and enough momentum they'd be quaking in their boots.

 

The anti-fraud system is in place to stop people who are illegally obtaining and laundering money through PayPal. This is the reason they hold peoples money. For every 10000 wrong doers they get maybe 1 innocent person caught up in it. Dont do suspicious things with your money and youll be fine.

Anyone who gets their account limited, doesnt follow the steps to retrieve the money and goes around blaming PayPal know they did something wrong.

I seriously laughed when I saw this. Blaming PayPal because someone cant find 5 minutes out of their time to do a simple task? HAHA.

 

@David - I'm sorry. I don't understand what the issue is with holding money till the account holder provides valid documents as proof of residence and/or identity. As soon as the required documents are produced the hold is released. The only people, in my opinion, who would have problems, will be the ones who have opened accounts using false names and/or VCC's.
Placing an account on hold might cause small and temporary inconviniences but in order to prevent scams, PAYPAL has to keep certain checks in place.
If you are still not convinced, why don't you try and come out with an alternative startegy which makes sure the interests of buyers and sellers are protected without having to place accounts on hold for suspected fraud and/or money laundering.