PayPal faces lawsuit for freezing customer accounts and funds

three Paypal Users whose accounts were allegedly frozen by the company and whose funds were taken by the company without explanation file a federal lawsuit Against online payment services. The plaintiffs — two users from California and one from Chicago — accused the company of unlawfully confiscating their personal property and violating racketeering laws. They are now filing a class action lawsuit on behalf of all other users whose accounts were previously frozen and are seeking damages, as well as punitive and exemplary damages.

One of the plaintiffs, Lena Evans, a PayPal user, said the site seized $26,984 from her account after a six-month freeze, but never told her why. Evans has been using PayPal to buy and sell clothing on eBay, exchanging money for a poker league she owns and a nonprofit that helps women in need.

Fellow plaintiff Roni Shemtov said PayPal seized more than $42,000 of her funds but never found an acceptable reason for her account termination. When she contacted the company, she received several different explanations: one customer representative said it was because she was using the same IP and computer as other Paypal users, while another customer representative said it was because she was using a more 20% to 30% off yoga clothes. Another representative allegedly said it was because she used multiple accounts, which she denied.

The third plaintiff, Shbadan Akylbekov, said PayPal seized more than $172,000 of his money without giving him any explanation why the account was restricted in the first place. Akylbekov uses an account at a company his wife owns to sell the Hyaluronic Acid Pen, a needle-free pen that infuses hyaluronic acid into the skin. After the money disappeared from the account after a six-month freeze, PayPal allegedly wrote his wife a letter saying she had “violated PayPal’s User Agreement and Acceptable Use Policy (AUP), accepting paid for the sale of injectable fillers that were not FDA-approved.” It also said the money was withdrawn from her account “for liquidated damages for breaches of the AUP under the User Agreement.”

PayPal has long angered many users by restricting accounts and freezing funds for six months or more. In one high-profile case, US poker player Chris Moneymaker withdrew $12,000 from his account after being banned for six months. Moneymaker is already ask people Joined him in a class action lawsuit before his funds were “mysteriously returned”.

Some of the complaints are as follows:

“Plaintiffs filed a class action against defendants PAYPAL, INC. (“PayPal”) to recover legal and equitable damages and other remedies available on behalf of themselves and members of the classes defined herein…this source of action There is no reason, nor any fairness or due process, for the defendants’ unilateral seizure of funds from their clients’ financial accounts.

PayPal will “retain” plaintiff’s own funds in its own PayPal account. PayPal failed to inform plaintiffs and class members of the reasons for PayPal’s actions, and even told plaintiffs and class members that they would “have to obtain subpoenas” for simple information on why PayPal held and denied plaintiffs access to their own money. “

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