Dynamic Accident Lawyers: PayPal Account Hold Class Action Settlement

A settlement has been proposed in a class action lawsuit alleging PayPal Inc. improperly handled disputed transactions and improperly placed holds on PayPal Accounts. If you had an active PayPal account between April 19, 2006 and Nov. 5, 2015, your rights may be affected by this class action settlement.

The proposed $3.2 million PayPal class action settlement will resolve allegations that PayPal improperly handled disputed transactions and placed holds, reserves or limitations on customers’ accounts without notice, and in some cases suspended or closed accounts. The plaintiffs claim that PayPal failed to provide customers with monthly account statements and error-resolution notices as required by the Electronic Fund Transfer Act.

PayPal operates an online payment processing service that facilitates payments between buyers and sellers of goods and services sold online. According to the PayPal class action lawsuit, the PayPal User Agreement indicated that upon a breach of its terms, PayPal “may hold funds in a seller’s account by placing reserves on accounts and/or limiting and/or suspending seller’s accounts and holding the funds in the accounts for up to and in some cases exceeding 180 days.”

The plaintiffs, who had used PayPal as sellers, claim that they all had funds in their PayPal accounts frozen for 180 days, but PayPal failed to inform them about the type of activity that triggered the account freeze. Further, PayPal allegedly failed to provide them with an opportunity to remedy the situation and avoid holds being placed on their accounts in the future.

PayPal denies any wrongdoing but agreed to settle the account hold class action lawsuit to avoid the expense and uncertainty of trial. The PayPal class action settlement was preliminarily approved on Nov. 5, 2015.

Who’s Eligible

You are eligible to file a claim for the PayPal class action settlement if you are a current or former user of PayPal in the United States who:

Had an active PayPal account between April 19, 2006 and Nov. 5, 2015; and
Had a hold or reserve placed on the account and/or the account was closed or suspended by PayPal.

If this definition describes you, you are a Claims Class Member.

Potential Award

Up to $2,000.

Claims Class Members may elect to make a Basic Claim or an Alternate Claim.

Basic Claim: If you are a Claims Class Member and you elect to make a Basic Claim, your payment will be determined based on the dollar amount of the longest hold or reserve on your account. These Basic Claim amounts are expected to range from $3 to $440.
Alternate Claim: If you are a Claims Class Member, you may elect to make an Alternate Claim to seek payment for your actual damages, up to a maximum possible payment of $2,000. If your Alternate Claim is denied, your claim will be treated as a Basic Claim.

Injunctive Relief: PayPal has agreed to revise its User Agreement and add certain disclosures about its use of fraud and risk modeling. It has also agreed to change its policy with regard to requests for information, and to disclose the reason for a hold, reserve or limitation as long as this disclosure is not inconsistent with PayPal’s security requirements. All Class Members are entitled to this relief.

Proof of Purchase

Claims Class Members must follow the directions on the Claim Form and fill it out completely.

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

TBD. The Claim Form deadline was not yet set by the court at the time of publication.

Case Name

Zepeda v. PayPal Inc., Case No. 5:10-cv-02500 SBA, in the U.S. District Court for the Northern District of California

Final Hearing

TBD. The Final Approval Hearing date was not yet set by the court at the time of publication.

Settlement Website

www.AccountHoldSettlement.com

Claims Administrator

Zepeda v. PayPal Settlement Administrator
P.O. Box 4259
Portland, OR 97208-4259

Class Counsel

QUANTUM LEGAL LLC
LEXINGTON LAW GROUP
FARMER JAFFE WEISSING EDWARDS FISTOS & LEHRMAN PL
SEEGER WEISS LLP

Defense Counsel

STROOCK & STROOCK & LAVAN LLP

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

Email*
State*
selectAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyomingArmed Forces AmericasArmed Forces EuropeArmed Forces Pacific

jQuery(document).ready(function($){gformInitSpinner( 5, ‘http://11284-presscdn-0-40.pagely.netdna-cdn.com/wp-content/plugins/gravityforms/images/spinner.gif’ );jQuery(‘#gform_ajax_frame_5’).load( function(){var contents = jQuery(this).contents().find(‘*’).html();var is_postback = contents.indexOf(‘GF_AJAX_POSTBACK’) >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find(‘#gform_wrapper_5’);var is_confirmation = jQuery(this).contents().find(‘#gform_confirmation_wrapper_5’).length > 0;var is_redirect = contents.indexOf(‘gformRedirect(){‘) >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;if(is_form){jQuery(‘#gform_wrapper_5’).html(form_content.html());setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ jQuery(document).scrollTop(jQuery(‘#gform_wrapper_5’).offset().top); }, 50 );if(window[‘gformInitDatepicker’]) {gformInitDatepicker();}if(window[‘gformInitPriceFields’]) {gformInitPriceFields();}var current_page = jQuery(‘#gform_source_page_number_5’).val();gformInitSpinner( 5, ‘http://11284-presscdn-0-40.pagely.netdna-cdn.com/wp-content/plugins/gravityforms/images/spinner.gif’ );jQuery(document).trigger(‘gform_page_loaded’, [5, current_page]);window[‘gf_submitting_5’] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find(‘#gforms_confirmation_message_5’).html();if(!confirmation_content){confirmation_content = contents;}setTimeout(function(){jQuery(‘#gform_wrapper_5’).replaceWith(” + confirmation_content + ”);jQuery(document).scrollTop(jQuery(‘#gforms_confirmation_message_5’).offset().top);jQuery(document).trigger(‘gform_confirmation_loaded’, [5]);window[‘gf_submitting_5’] = false;}, 50);}else{jQuery(‘#gform_5’).append(contents);if(window[‘gformRedirect’]) {gformRedirect();}}jQuery(document).trigger(‘gform_post_render’, [5, current_page]);} );} ); if(typeof gf_global == ‘undefined’) var gf_global = {“gf_currency_config”:{“name”:”U.S. Dollar”,”symbol_left”:”$”,”symbol_right”:””,”symbol_padding”:””,”thousand_separator”:”,”,”decimal_separator”:”.”,”decimals”:2},”base_url”:”http:\/\/topclassactions.com\/wp-content\/plugins\/gravityforms”,”number_formats”:[],”spinnerUrl”:”http:\/\/topclassactions.com\/wp-content\/plugins\/gravityforms\/images\/spinner.gif”};jQuery(document).bind(‘gform_post_render’, function(event, formId, currentPage){if(formId == 5) {gformInitChosenFields(‘#input_5_2′,’No results matched’);} } );jQuery(document).bind(‘gform_post_conditional_logic’, function(event, formId, fields, isInit){gformInitChosenFields(‘#input_5_2′,’No results matched’);} ); jQuery(document).ready(function(){jQuery(document).trigger(‘gform_post_render’, [5, 1]) } );