Viewers of Top Class Actions are reporting that they are receiving checks in the mail from a $3.2 million class action settlement over allegations PayPal Inc. improperly handled disputed transactions and improperly placed holds on PayPal accounts.
The PayPal class action lawsuit, titled Zepeda v. PayPal Inc., accused PayPal of improperly handling disputed transactions; placing holds, reserves or limitations on customers’ accounts without notice; and in some cases suspending or closing accounts.
So far, they have received checks worth between $11 and $23.15, according to viewer comments and posts on the TCA Facebook page.
Congratulations to everyone who submitted valid claim and got PAID!
According to the PayPal class action lawsuit, PayPal failed to provide customers with monthly account statements and error-resolution notices that are required under the Electronic Funds Transfer Act.
The plaintiffs, who used PayPal as sellers, allege they had funds in their PayPal accounts frozen for as much as 180 days but that PayPal failed to inform them about what had triggered the account freeze. The PayPal class action lawsuit also alleges PayPal failed to provide the plaintiffs with an opportunity to address the situation and avoid future holds being placed on their accounts.
PayPal denies any wrongdoing but agreed to settle the account hold class action lawsuit to avoid the burden and expense of ongoing litigation.
Class Members of the PayPal settlement include current and former PayPal users in the United States who had an active PayPal account between April 19, 2006 and Nov. 5, 2015 and who had a hold or reserve placed on the account and/or had an account that was closed or suspended by PayPal.
Eligible Class Members could choose between filing a basic claim, which would entitle them to payment based on the dollar amount of the longest hold or reserve on the account, or an alternate claim for actual damages up to $2,000. Basic claim payment amounts were estimated to range from $3 to $440.
In addition to offering cash payments to eligible claimants, PayPal also agreed to revise its User Agreement to add certain disclosures about its use of fraud and risk modeling, to change its policy regarding requests for information, and to disclose the reason for a hold, reserve or limitation (unless the disclosure is not consistent with PayPal’s security requirements).
The deadline to file a claim for the PayPal class action settlement passed on Oct. 14, 2016.
The PayPal account hold class action settlement received final approval on March 24, 2017.
Congratulations to our Top Class Actions readers who submitted a valid claim and got PAID! If you missed out, sign up for our free newsletter to receive updates on new class action lawsuits and settlements. You can also check out which class action settlements are still accepting claims in our Open Class Action Settlements section.
Class Members are represented by Quantam Legal LLC, Lexington Law Group, Farmer Jaffe Weissing Edwards Fistos & Lehrman PL and Seeger Weiss LLP.
The PayPal Account Hold Class Action Lawsuit is Zepeda v. PayPal Inc., Case No. 5:10-cv-02500, in the U.S. District Court for the Northern District of California.
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144 thoughts onPayPal Account Hold Class Action Settlement Checks Mailed
PayPal did the exact same thing to me in April 2020 due to a dispute and they did not bother to inform me that my account was closed I was in fact waiting for my weekly deposit to clear and it had been a few days it hadn’t showed up . They cost me my check and caused allot of unsubstantial loses in a short matter of time. My taxes were delayed almost 6 months because that was the account I had used to e-file. I lost my home , etc.
PayPal hold funds for 180 days with no explanation, or they say for “investigation.”
Thats 6 months. Why does it take that long to investigate, and why should we suffer by them holding our money that long? There should be a faster way to do yall so called “investigations.”
Someone on a different forum said that he believes they are holding your money just to gain more interest off of it through their side investments, which they ALREADY accumulate interests just from us dealing with money using their service.
Every 3 months is a yearly quarter for investors…. so 180 days or 6 months is 2 quarters out the year. So they probably holding funds for this exact reason, but claim they doing investigations, etc.
One woman got fed up after they held her funds for over a year, that she went and got a attorney to contact PayPal, and all of a sudden they released her funds to her immediately right after. (You can look for her story online somewhere)
Also they put all these restrictions/hold on peoples account for any and everything. Yet wont provide a specific reason. When you upload your personal/sensitive info online :-/and they approve it and release the restrictions/hold etc… then they turn around and tell you to upload more docs, or the same docs they already approved before. Then a week, or a month later, randomly tell you to do the same thing again.
Paypal supposed to make things easier for their customers.. all they leave you with is a bunch of frustration and a big headache.
No one wants to keep uploading personal/sensitive info over the internet. There has to be way more transparency other than “we need this info for security reasons.”
Sign me up for lawsuit also, my email is [email protected]
Peace & blessings to all!
Is it too late to get my payment?
I am currently in the same position as the lady who had to continually having to submit documentation on my well was business PayPal account every 2 to 3 weeks and months. This extremely drastically hurt my business relations with my customers and finances. No I can’t close it nor use it but I’m permanently banned.
I lost money with paypal they hold my money with a dispute that someone made them the other person was not ask to give information that just refunded her the money just like that I had so much prices that person received her items the post office lady said as well that she handed to her in her hands etc. They did not even bother they close my case sooner than they should has. That is why eBay does no use them to pay the sellers. I just found out about this settlement now I am to late now.
My acct was “permanently limited” yesterday for absolutely no reason at all. I called they told me I am either under 18 or I made a second account (which I did not do!) I have almost daily transactions including paying bills and Paypal has screwed me. We need a class action lawsuit for wrongful banning!
Has there been any progress with this? My account was restricted due to a flagged word in my email. The account was fullt active until funds were deposited, when immediately it was locked. The 180 day wait is now over and they say the funds were used for damages
Took 5k from me after holing over 6 months. I want my money back. Claimed I sold RX. I sold OTC. PayPal claimed it didn’t agree with their beliefs. My brother also lost all his funds for selling a motorcycle seat.
they are holding 86.79 from me that is owed to me which is a refund from sony which was approved cause I canceled a pre-order at the time and paypal claimed it was cancelled cause the id didn’t match which makes no sense and they trying to robbed me for my funds by denying my dispute when I gave so much proof as well screenshots from my email plus my gaming account can someone please look into this
A customer ordered parts with no insurance and received damaged items in the mail. PayPal made me pay the money out of my account after I sent new parts to him and chose in his favor. I’m so pissed I’m not putting anymore of my hard earned money into Paypal
Please add me to this lawsuit.
I’d like to be added to the lawsuit if possible. PayPal did absolutely nothing to protect me in a dispute filed by a buyer, and I am out money for an item that the buyer confirmed receipt for.
They are holding $1584.00 of mine they refused to tell me why and they permanently closed my account they say I can get my money by December 10
Ur not gonna get it. They’re taking everyone’s money for “damages”
Pay Pal is holding $1352. I sent to my niece who has cancer. This was to pay her rent for January 2021. I’ve had no problems lately, but they have the money on hold for no reason. They say their security system flagged something on some other transaction. Please include me in the class action. They have no right to hold my funds.
They are holding $13,000 of mine. Limited my account permanently a d failed to send any notification of a 2nd 180 day investigation. When I was on a 180 day hold and it was up on February 9th 2021 and was specifically told that my balance would be released only to be told 2 days later a 2nd 180 day hold was placed. I’d love to join this suit if at all available
Omg that’s insane were in a similar situation but with our COVID relief money. Were trying our best to find a way to fight this wrong doing.