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Yesterday, plaintiffs asked a federal judge to approve a revised class action settlement that would resolve allegations PayPal Inc. improperly placed holds on funds held in PayPal accounts in violation of the Electronic Fund Transfer Act.
According to the motion seeking approval of the PayPal class action settlement, the release was narrowed without reducing any benefits to the Class Members, addressing the concerns brought up by the judge who rejected the first version of the deal earlier this year. If approved, the PayPal settlement would resolve a class action lawsuit filed against PayPal and eBay in 2010 over the fund holding policy.
In March, U.S. District Judge Saundra Brown Armstrong rejected an earlier version of the PayPal class action settlement, which the plaintiffs had filed in August 2014. In her order rejecting the settlement, Judge Armstrong questioned the court’s jurisdiction over the class action lawsuit due to a prior settlement in another action known as In re: PayPal Litigation (Comb). In addition, she had questions about releases for claims against PayPal dating back to 2006, when the conduct in dispute started in 2008.
“After arms-length negotiations, the settlement in this action has been amended to exclude the claim concerning the Comb settlement from the proposed Third Amended Complaint, and to exclude the Comb settlement from the scope of the release to be given to PayPal,” the plaintiffs wrote in their motion seeking preliminary approval of the PayPal class action settlement. “All of this has been done without reducing the class benefit by a single penny.”
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.
“The Settlement, which makes the class nearly whole for lost interest as a consequence of PayPal holds, including holds that went back all the way to 2006, is more than within the bounds of fairness, reasonableness and adequacy, and should be approved,” the plaintiffs urged the judge.
The plaintiffs are represented by Jeffrey A. Leon of Quantum Legal LLC, Mark N. Todzo of Lexington Law Group, Steven R. Jaffe of Farmer Jaffe Weissing Edwards Fistos & Leherman PL, and Jonathan Shub of Kohn Swift & Graf PC.
The PayPal Class Action Lawsuit is Moises Zepeda v. PayPal Inc., Case No. 4:10-cv-02500, in the U.S. District Court for the Northern District of California.
UPDATE: Claim filing instructions for the PayPal account hold class action settlement are now available! Click here or visit www.AccountHoldSettlement.com for details.
UPDATE 2: On Nov. 14, 2016, PayPal users urged a California federal judge to grant final approval of a near $4 million settlement over claims the company placed inappropriate holds or reserves on sellers’ funds.
UPDATE 3: On Oct. 26, 2017, Top Class Actions viewers who filed a claim for the PayPal Account Hold class action settlement started receiving checks worth as much as $23.15. Congratulations to everyone who got PAID!
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33 thoughts onPayPal Users Seek Approval of $3.2M Class Action Settlement over Held Funds
Google did have privacy issues
I hate Paypal and they just separated from Ebay, thankfully and I just ordered 3 things, didnt even log into Paypal, instead chose the option to pay via credit card. Entered my cc info, exp date, 3 digit number on back and waited till it said verifying credit card) THREE TIMES..Land thanked me for my purchase, then I find out paypal took the $$ out of my bank! How? I didnt even log into pp. why even offer the option to enter cc info and wait till it verifies it. The guy at pp said you must have hit the wrong button and chose paypal. I said I am not an idiot..,dont you think just once in those 3 transactions i would have thought hey wait i am paying the wrong way. Now all jy bills are going to bounce, they said they would send me a letter to give to give to my bank. Big deal! This is clearly a glitch in their new separation from Ebay. Beware of Paypal. They are slime!!
I just had this happen TODAY!! There was a refund to me, and on payal website it shows completed (2 days ago) yet it hasnt reached my bank yet. I called the bank they said it could take 5 days. Why? When i pay via paypal it is automatically taken out of my bank acct so when I have a balance in my pp acct to be refunded, where does that $$ go for 5 days? Its not in paypal and its not in my acct. where is it?
How do I get in on this back in June I sold something on eBay and they keep sending me in circles to each other I need my money back I lost 900 dollars in sales
Its about f****** time I have fought with paypal and ebay forever and lost money to a buyer in Canada who said they never got the merchandise when there was a postal strike, and another buyer in California who refused to pay for insurance and the package was lost or stolen in the mail.Ebay and paypal sided again with the buyer gave them the funds back the buyer even kept the $50. of postal insurance .I lost the $250 worth of jewelry. Ebay and paypal sided with the buyer against me, a seller since 1998 with 250 positive feedback.Sign me up Id love to see EB &PP finally get theirs.
Also been screwed over big time by Paypal. I know so so so many people who have had money stolen or held for 180 days – these guys are not regulated as they are not considered a bank. It is a ponzi scheme and literally organized crime rings as these owners are the same tribe which own the Fed and the same tribe that run every bank and FDIC. They are all buddies and thats why no one has successfully challenged them for doing things that any other company or person or even bank would be imprisoned for. These rat parasites need kicking out of our country for good – they already run it from Israel (Prez of Fed is Israeli citizen) – I guess 200 million Christian Westerners died in WWII so they could have a country to run a crime syndicate from and yet for some reason they wont live there?? They only live where they can fleece the stupid goyim.
I have had the same issue
They held my funds many times in fact one fund was for 1600 and I never ever received it, the person over seas stated they never got the item. Even though tracking showed they did, however it wasnt certified though I never seen anything stating sending overseas had to be certified. So yeah held and lost
I had this issue with PayPal as well.
How do I get reimbursed? I’ve had several holds on my account.
I had a issue with them too about two years ago they with held funds it stopped a purchase and was not our fault I acctually stopped using ebay due to pay pals issue used to make a little extra on the side with them but we cant anymore so glad someone did something