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PayPal Settles Class Action Lawsuit over Held Funds
 

PayPal is settling a class action lawsuit over their policy of holding funds.

"According to the PayPal settlement documents, the revised deal would provide benefits to more than 100 million PayPal account holders. The proposed settlement will require PayPal to make changes to its business practices and enhance the disclosures on its website to provide more information about holds, reserves and limitations.

Under the terms of the proposed class action settlement, PayPal will pay at least $1.8 million to Class Members who had holds or reserves placed on their accounts. Approximately 10.5 million PayPal users may be eligible for payment from the PayPal settlement. PayPal will also pay up to $800,000 to Class Members who have documentation of actual damages."

Here is a link to the story:

PayPal Settles Class Action Lawsuit Over Held Funds

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

This is NOT a big money win for most people, and before anyone starts celebrating, I would caution you to be careful what you wish for! Because if PayPal is going to be placed under the same rules and regulations as a BANK, then don't be surprised if they choose to BECOME A BANK! And that would not be good for ANYONE!

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

^^^^^^^^^^Exactly. If we gloat over recovering the crumbs that fell off the table, the entire loaf might be missing when we look in front of us.

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

Paypal and Class in the same phrase? interesting

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

This is great, bout time the pay for all the crap they pulled

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

Yes I would prefer PayPal to keep holding my funds thank you than operate like a bank. In some countries 21 day hold is already illegal

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

A drop in the bucket (if not ocean).
If theyre forced to change this 180 day hold policy now THAT would be something. But somehow I just dont see it happening...

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

better we just deal with the current situation rather than Paypal becoming more regulated and continue to require more info from users under the guise of the patriot act or whatever they come up with. Sure, maybe the government will ban their 180 day holds, while at the same time making it impossible to create stealth accounts anymore by demanding SSN for all. What has anyone gained then?

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

The 180 day holds is an unfair practice, but by the time you discover this forum, you should have learned to not leave a significant amount of money in there anyway. Especially with a stealth account.

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

Haven't seen anyone talking about this lately. I been getting emails from paypal about submitting claim. Anyone else get those or submitted a claim.

I probably have a different thought process than others in this thread. First Paypal's goal is to be the person to person payment form of the future. It is the simplicity that has made them popular to this point. Only way they have a shot for success in the future. They wouldn't freely become more regulated. If they were forced to become more regulated it would just open up opportunities for competitors. We don't choose Paypal because we love it. We use it pretty much because we have little choice. Now this little class action won't lead to them becoming a bank. I'm not afraid of that world though.

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

An atom in a vast Universe.

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

Is anyone here filling the form because paypal held $5000 as a reserve on my account between 2012 and 2015.
I wanted to know

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

I want paypal to be regulated. Banks merchant account don't have policies like paypal and winning chargeback are much easier for most. I haven't had anymore problems with paypal but their policy is like a monopoly. I admit ever since the ebay and paypal split cases been a breeze but their policy still puts me on edge.

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

You do realize that if paypal becomes 'regulated' that we can kiss stealth accounts goodbye, right?

Banks are 'regulated' and stealth is almost unheard of unless you go through vast lengths to defraud them. They need to verify almost everyone and where their money goes/come from.

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

Yes, but I never heard of banks blocking qualified applicants for an account or merchants unless they have an unpaid balance with ChexSystems.

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

^^^^^^

This, this and this.

First of all this settlement means nothing. If you read it, it says paypal will change its policies unless it is deemed a security risk. How much you want to bet everything will just be a security risk now.

As far as regulation I would love it actually. The issue is paypal is so unregulated that they can shut down an account with no explanation, then ban you with no explanation and completely cripple your business as they are a monopoly on one of if not the biggest eCommerce sites on a planet and they have a monopoly.

Lets remember Stealth exists because of their unregulated policies

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

1.8 million to them is pennies. They made so much more off holding people funds.

They knew what they were doing was illegal but didnt care because they thought humm make and steal tons of millions off accounts and Pay a lawsuit 2 million lawsuit.. Profit.. They knew they would get sued but didnt care

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

Exactly, they can't pull that stunt under regulation. I never heard of banks banning and shutting down merchants to steal their profit.

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

this should of been more regulated before. most of us got suspended because they weren't regulated.

with more regulation you wouldn't have 21 hold on payments, 180 day hold on bans, they wouldn't ban family members, would ask for invoices a lot less often, etc.

probably without regulation is that they don't know and what they don't know they, they assume the worst and ban.

probably is paypal is losing a bunch of business with the regulations already. they are slowly getting rid of 21 day hold. if you have an iphone to sell, you can sell locally, sell to a big company or sell on ebay. ebay would give you most, but if you aren't being paid for 21 days and are required to pretty much provide DNA samples, than why bother?

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

Lets say you go to a regulated bank to get a loan and you don't meet the requirements. The reason bad credit. Okay, the bank will not do business with you. Go home fix the issue and come back. Once fix you can now get a loan from the bank because you're qualify.

With PayPal if you do not meet those requirements the first time, or they run a credit check and it comes back with a low score. You're done for life, you get a permanent ban. If you go home and comeback in 5 years with excellent credit they will not reinstate you.

Banks can't do that, they can't blacklist accounts that don't meet the requirements. They can close the account but not keep it open as blacklisted. Problem with paypal is that if they don't want your business they don't close your account they keep it open and blacklisted for life.

Banks can reject you today and accept you again if you came back with the proper requirements because the are insured. The government ensures the bank that they will back them up when needed (bail out). PayPal is not insured and not regulated they can only survive by being a savage company. Getting PayPal regulated is like giving them the ten commandments so they more civilized.

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

I have sent several emails to Paypal this week highlighting the fraud that they are committing by holding my funds without reasonable cause. As usual, I got the typical response from the sheep representative who says I have to wait 180 days.

I have emailed essentially all of their emails, including their executive office. I hope I get a response.

If anyone has any suggestions please contact me! It is a stealth account so I can't make as much of a fuss as I want to.. lost $800 though.

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

THIS NOTICE MAY AFFECT YOUR RIGHTS. PLEASE READ IT CAREFULLY.

A settlement has been reached in a class action in which the plaintiffs allege, among other things, that PayPal improperly handled disputed transactions on PayPal accounts and improperly placed holds and reserves on accounts or closed or suspended accounts. Plaintiffs also allege that PayPal failed to provide annual error-resolution notices and monthly account statements under the Electronic Fund Transfer Act.

You are a member of the Settlement Class if you had an active PayPal account between April 19, 2006 and Nov. 5, 2015. Certain Settlement Class Members who had a hold or reserve placed on their account and/or who had their account closed or suspended by PayPal are eligible to receive a monetary payment upon submission of a valid claim form.

This notice summarizes the proposed settlement. For the precise terms and conditions of the settlement, please see the Settlement Agreement available at http://www.accountholdsettlement.com/ or by visiting the office of the Clerk of the Court for the United States District Court for the Northern District of California, 1301 Clay Street, Oakland, CA 94612, between 9:00 a.m. and 4:00 p.m., Monday through Friday, excluding Court holidays.

PLEASE DO NOT TELEPHONE THE COURT OR THE COURT CLERK'S OFFICE TO INQUIRE ABOUT THIS SETTLEMENT OR THE CLAIM PROCESS.

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

This will go to appeals ad be stuck in more courts for years.... Don't hold your breath

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

its a settlement meaning Paypal agreed. it will not go to appeals

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

Regulations always favor the businesses. If regulations threaten their profits, they will find loopholes, take the profit elsewhere, or outright ignore them and pay an insignificant fee. If they threaten your profits then you get screwed. Not to mention, many regulations are actually sponsored by the large corporations as it builds barrier to entry for competition.

See: regulatory capture.

Bottom line, if you do honest business, the last thing you want is regulation of PP or ebay. If you do shady and or illegal business, regulation is great (since regulations are what create a market for shady or illegal business in the first place)

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

My attorney is one of the best Class Action Lawyers in the Country. He already got me $6500 on a OD fee settlement with a large Bank here in Oklahoma. These were his words of advice in regards to this Class Action Suit against Paypal.

"You'll want to get in on the "alternate claims" part, assuming those facts apply to you - says you can get up to $2K. With a 3.2M settlement for all of Paypal, without getting an "alternate claim," I'd assume you'd be cashing a check for a few dollars. If you want to pursue your individual claim, then you would need to exclude yourself to make sure your rights aren't released."

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

I had over $50k held for 180 days. Even if I go alternate, I'd get $2k max?? WTF? anybody else going different route? (i.e. individual claims?) should I go to separate claims?

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

Just because you had $50k held for 6 months doesn't mean they will pay you $50k, in fact, you won't even get the $2k.

You have to prove you had damages.

For example, say you had $1,000 held and you needed that $1,000 for expenses and couldn't buy things out right so you had to use a credit card and pay credit card interests. Than those interest charges would count.

But getting an attorney and all that over this pretty much makes it not even worthwhile.

Point of class action lawsuit is the lawyers win big and they weren't affected. Paypal gets off the hook with loosing what is literally pennies for them.

They will continue to do these holds. The interest they get from these holds are literally 10,000 fold this little lawsuit

Re: PayPal Settles Class Action Lawsuit over Held Funds
 

lol, who in the world would ask for $50k in damage?

Still $50k is alot of money. If you're running a business and all of a sudden $50k is held for half a year. You cannot buy inventory which results in severe loss of sales, profits. Those things are hard to prove but I might as well bring it up. I still remember the hard times because of that reserve and how many times I had to literally beg at paypal rep to save my life and it still pisses me off how they treated.

I can easily get $2k.