The operator of the online payment system PayPal is facing a lawsuit filed by three users of this service – two from California and one from Chicago. They accuse the company of illegally seizing their personal property and violating the federal blackmail and corruption law, informs the Bloomberg agency.
According to a lawsuit filed in California on Thursday, PayPal blocked funds for up to six months due to an alleged breach of a 65-page agreement with users. The company allegedly refused to provide any explanation for this step.
Frozen accounts, blocked money
According to the documents, after the account was frozen and access to the funds was blocked, PayPal did not provide its customers with any information, on the basis of which it decided to take this step. The plaintiffs seek a class action lawsuit on behalf of all other users whose accounts have been frozen in the past and seek damages as well as monetary and exemplary damages.
The first claimant is Lena Evans, who has been a PayPal user for 22 years. She stated that for a period of six months after the account was frozen, $ 26,984 (approximately 577 thousand crowns) was confiscated, without giving her a reason. Evans used PayPal to buy and sell clothes on eBay, to exchange money for the poker league and for a non-profit organization that helps women with different needs.
The second Roni Shemtov stated that PayPal confiscated her more than 42,000 dollars (approximately 898,000 crowns) and never learned the acceptable reason why her account was canceled. When the company contacted, it received several different explanations: according to one it was because it used the same IP address and computer as other users of the service, another was because it sold yoga clothes 20-30% cheaper than at retail, the third version was that she used multiple user accounts, which she herself denies.
Third prosecutor Shbadan Akylbekov said that PayPal confiscated more than $ 172,000 (approximately 3.6 million crowns) without giving him any explanation. Akylbekov used his wife’s account, which sold cosmetic hyaluronic pens without needles. After all the money disappeared from the account after six months of freezing, PayPal allegedly sent a letter to his wife stating that “Has breached the contract with the user of the service and the principles of acceptable use by: received payments for the sale of injectable productswhich have not been approved by the FDA. “
It is not exceptional
It should be added that PayPal has a very long history of cases in which it has restricted accounts and frozen its users’ funds without explanation. One of the most famous was the case of American poker player Chris Moneymaker, who was deprived of $ 12,000 (approximately 256,000 crowns) from his account after six months of blocking. After Moneymaker shared the experience on Twitter, where he threatened to sue, the money was returned to his account without any explanation.
‘This action is based on the defendant’s extended commercial practice, which unilaterally confiscates funds from its clients’ accounts, without justification and without any fair or due process. “ the applicants state.
Some Czech users who received money for goods and services through this payment system also have similar experiences with PayPal. Mostly it was a matter of blocking the account and preventing access to funds. PayPal usually did not explain this step at all, or only very generally. In some cases, he subsequently required proof of documents such as trade licenses, tax returns and other documents used by the disabled to prove the origin of the money obtained.