Three PayPal users whose accounts were allegedly frozen and funds taken by the company without explanation have filed a federal lawsuit against the online payment service. From a report: The plaintiffs — two users from California and one from Chicago — accuse the company of unlawfully seizing their personal property and violating racketeering laws. They are now proposing a class action lawsuit on behalf of all other users whose accounts have already been frozen and are seeking restitution, as well as punitive and exemplary damages. Lena Evans, one of the plaintiffs who had used PayPal for 22 years, said the website seized $26,984 from her account six months after it was frozen without ever telling her why. Evans used PayPal to buy and sell clothes on eBay, to exchange money for a poker league she owns, and for a nonprofit that helps women with various needs. Complainant Roni Shemtov said PayPal seized more than $42,000 of her money and never got an acceptable reason why her account was terminated. She received several different explanations when she contacted the company: one customer representative said it was because he was using the same IP address and computer as other Paypal users, while another said it was because he was selling yoga clothes for 20-30% less than retail. Yet another rep allegedly said it was because she used multiple accounts, which she denies.
PayPal faces legal action for freezing customer accounts and funds
Source link PayPal faces legal action for freezing customer accounts and funds