Looks like big news at auctionbytes.com:
Online sellers who filed class action lawsuits against PayPal over the company’s practice of holding funds for lengthy periods have reached a tentative agreement to settle following successful mediations.
The parties in Fernando v. PayPal and Zepeda v. PayPal are currently in the process of finalizing a written settlement agreement and exhibits, including proposed notice to the settlement class. A hearing on preliminary approval is set for June 12, 2012, with the motion for preliminary approval to be filed by May 8, 2012.
There’s lots more to read there, including the court case numbers, law office names, contact emails etc.
It also looks like Paypal is expanding it’s terms in the ‘Funds Availability Program’ to allow for yet more reasons to unlawfully hold funds. Yes, they will still be not only holding, but increasing holding people’s funds despite the lawsuits!
Don’t forget that eBay has it’s own terms to hold people’s money also, and the User Agreements of the two are thoroughly intertwined, another condition which may not be legal.
By the way, in case you missed it, recently a paypal representative admitted they had faulty filters which were wrongly flagging people’s accounts and holding their money without good cause.
It’s very obvious what is happening. They need to extract more and more money from less and less people in order to show ‘growth’ where there is none.
I’m sure everyone must realize that by now.
My advice, don’t give these preypal clowns a chance to snatch your money. The fact they will still be holding (let alone expanding the list of reasons -which may or may not be secret) monies while or after such lawsuits are being settled demonstrates their contempt for the law and your rights as a consumer.
Once again, the Paypal User Agreement does not override your state’s Money Transmitter License terms. If it did, then PayPal would not be caving to the lawsuits. But apparently Paypal thinks they are above the law and they can settle up quietly, continue to abuse more folks, and hornswaggle the world. Keep filing complaints to your State’s agencies which oversee Money Transmitter Licenses and/or look into joining the lawsuits if you’ve been victimized.
If you haven’t yet become a victim, close your Paypal account and do whatever you need to to separate them from your bank accounts and credit cards. With their proven track record, you never know when or if the next ‘glitch’ or unannounced policy change will clean you out and throw your life into a tailspin.