Nowadays you often can’t get past PayPal. The online payment service is mainly used for purchases with small amounts. Sending money to friends or family is also considered a popular feature.
But in the case of three Americans, the company did not release the amounts even after this period. With a class action lawsuit, they are therefore taking action against PayPal and accusing the company of theft.
No information after blocking the PayPal account?
As the US tech blog Ars Technica reports, the plaintiffs are three independent users who had relatively large amounts in their accounts.
The bottom line of the lawsuit: PayPal had not informed the three users about the blocking and had not informed them exactly which conditions they had violated. Information on how to regain access to their account would also have been missing.
The company also did not disclose how the plaintiffs regained access to their assets. In at least one case, it is even documented that PayPal demanded a judicial effect from the injured party.
Over 250,000 euros confiscated from PayPal
The plaintiff requested a written copy of the refund forms. Although PayPal allegedly promised to deliver them within two days, nothing happened. The plaintiff has not received the documents to date.
A short time later, he received a letter that spoke of tax debts in the amount of 162,517.19 US dollars. That’s just under $10,000 less than the amount originally collected.
Plaintiffs want triple damages
“PayPal essentially claimed a deduction for an expense it never paid. The company seized $172,206.43 but reported only $162,517.19,” the plaintiff concludes.
In another case, the payment provider blocked an account because the owner sold yoga clothes far below the market price. In total, the company has seized around $250,000 in this way.
The lawsuit was organized by poker player Chris Moneymaker. The plaintiffs claim “triple damages”, i.e. damages in three times the amount of the damage. According to Ars Technica, the company would like to “comment on the allegations in due course through legal channels”.