Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
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!
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
33 thoughts onPayPal Users Seek Approval of $3.2M Class Action Settlement over Held Funds
Got my payment!! Thanks to TopClassActions.com and the law firm for all plaintiffs!!
Thanks for letting me Share this with you because Pàypal unauthorized use of my Business Accounts and my American Cancer Society of America Donation’s Proceeds frozen all the Accounts A Court Room Glass Action Lawsuits against Paypal policies Withdrawal fundings out of my Business Accounts Between Pàypal Freeze Up My accounts unauthorized charges breaches All Contract and tried to illegally Termination of my Business uses of my Business with paypalmemymoneynow
when are they going to settle this i am still having fund held from my account from sales i am making and it is unfair will we ever see any money back from this law suit or is paypal up and beyond the law?
I’m glad to Hear about my Settlement check and I agree with your Settlement checks When will I be able to get it and my hands Tommie Ray Boss
Updates
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.
If my account was froze last month am I eligible to participate in this? They froze my business account and froze almost 14k!
Here’s the TCA article with the PayPal Account Hold settlement details: https://topclassactions.com/lawsuit-settlements/lawsuit-news/306260-paypal-account-hold-class-action-settlement/. You’ll need to review the FAQs on the settlement website to determine if you qualify to submit a claim. You can also contact the settlement administrator with any questions on the claim requirements and process. Good luck!
The sons of bitches that run pay pal are still holding funds. If you try to reach anyone to discuss the issue, you simply get a computer run around. I needed my client to send me $500 cash to buy materials for the job while she was out of town. She sent me the cash, into my pay pal account. Pay pal immediately deducted their $$15 fee, then put a 21 day hold on the remaining $485.
Despite doing everything possible, neither my client nor I can get the funds released- which I’m now realizing they can keep indefinitely , since there is no one to talk to! They say nothing about these holds at all- so you don’t find out about it until your money is frozen. My client signed up for Venmo and sent another $500 which went through immediately . We all know why pay pal does this. If they hold the cash from millions of people at a time, for two and three weeks….imagine the interest they’re able to generate? Meanwhile, the aggravation and stress created by these situations effects only the poor, duped consumer. I’m sick of it and I can’t believ they can get away with stealing money like this. Call it a hold if you want to, but stealing my money and giving it back three weeks later is still stealing.
And the fee they charge to do this with your money is crazy how are they getting away with this
Thanks for letting me Share this with you because Pàypal unauthorized use of my Business Accounts and my American Cancer Society of America Donation’s Proceeds frozen all the Accounts A Court Room Glass Action Lawsuits against Paypal policies Withdrawal fundings out of my Business Accounts Between Pàypal Freeze Up My accounts unauthorized charges breaches All Contract and tried to illegally Termination of my Business uses of my Business with paypalmemymoneynow