Paypal class action lawsuit

[MrGrumpy]

Looks like someone finally decided to do something.. http://www.complexlitgroup.com/PayPal-Holding-Money.shtml This is going to be interesting.

 

[Tensegrity]

Good stuff!

I wonder what reasoning for withholding funds they might come up with when having to answer to a judge.

 

[closedCaption]

*Fingers crossed*

 

[dunker]

I'm really glad something is finally happening ...

Unfortunately I've probably got one of the worst PayPal horror stories to tell...

My company has been selling the exact same software product for 12 months now (it'll be 12 months on Friday, actually). All this time our chargeback + refund rate has been less than 3.0%.

Back in June 2012 we released the 2.0 version of our software, and brought in just over $100,000 in a week. PayPal immediatelly froze our account, reviewed it, and decided to:
- hold $50,000 of our funds till we close our account
- hold 30% of incoming funds for 120 days on top of this

Again, we've been selling the same product for a year with <3% chargeback rate, and they know we CANNOT close our account (to eventually withdraw our money) because we have 2,000 subscriptions tied to this account. Closing it would mean a loss of over $120,000 per year.

If there's anyone that can help us, I would appreciate it IMMENSELY. Unfortunately, our company is registered in the European Union - are there any regulatory offices that could help us?

Best of luck to everyone!

 

[ShifterIO]

It has to be done something similar in EU too.

 

[chris1025]

@dunker, there's a bst for your problem, just search for a bit.

 

[kamchatka]

Dump them and go with 2checkout. You can accept credit cards, debit cards and paypal with a 2CO account.

I'm really glad something is finally happening ...

Unfortunately I've probably got one of the worst PayPal horror stories to tell...

My company has been selling the exact same software product for 12 months now (it'll be 12 months on Friday, actually). All this time our chargeback + refund rate has been less than 3.0%.

Back in June 2012 we released the 2.0 version of our software, and brought in just over $100,000 in a week. PayPal immediatelly froze our account, reviewed it, and decided to:
- hold $50,000 of our funds till we close our account
- hold 30% of incoming funds for 120 days on top of this

Again, we've been selling the same product for a year with <3% chargeback rate, and they know we CANNOT close our account (to eventually withdraw our money) because we have 2,000 subscriptions tied to this account. Closing it would mean a loss of over $120,000 per year.

If there's anyone that can help us, I would appreciate it IMMENSELY. Unfortunately, our company is registered in the European Union - are there any regulatory offices that could help us?

Best of luck to everyone!

 

[cocococo]

let me get the popcorn out and let see how the case pans out.

 

[ericfishermans]

I'm really glad something is finally happening ...

Unfortunately I've probably got one of the worst PayPal horror stories to tell...

My company has been selling the exact same software product for 12 months now (it'll be 12 months on Friday, actually). All this time our chargeback + refund rate has been less than 3.0%.

Back in June 2012 we released the 2.0 version of our software, and brought in just over $100,000 in a week. PayPal immediatelly froze our account, reviewed it, and decided to:
- hold $50,000 of our funds till we close our account
- hold 30% of incoming funds for 120 days on top of this

Again, we've been selling the same product for a year with <3% chargeback rate, and they know we CANNOT close our account (to eventually withdraw our money) because we have 2,000 subscriptions tied to this account. Closing it would mean a loss of over $120,000 per year.

If there's anyone that can help us, I would appreciate it IMMENSELY. Unfortunately, our company is registered in the European Union - are there any regulatory offices that could help us?

Best of luck to everyone!

I did read elswhere that you could take on Paypal as they have office located in Luxembourg and there's some sort of civil action you can take using the facilities of the EU. If I can across it again I'll post it. Also It might be worth tracking down this info by getting in touch with your local VAT office as I make the assumption that Paypal take a VAT payment from you or your clients..

 

[michael8t6]

I'm really glad something is finally happening ...

Unfortunately I've probably got one of the worst PayPal horror stories to tell...

My company has been selling the exact same software product for 12 months now (it'll be 12 months on Friday, actually). All this time our chargeback + refund rate has been less than 3.0%.

Back in June 2012 we released the 2.0 version of our software, and brought in just over $100,000 in a week. PayPal immediatelly froze our account, reviewed it, and decided to:
- hold $50,000 of our funds till we close our account
- hold 30% of incoming funds for 120 days on top of this

Again, we've been selling the same product for a year with <3% chargeback rate, and they know we CANNOT close our account (to eventually withdraw our money) because we have 2,000 subscriptions tied to this account. Closing it would mean a loss of over $120,000 per year.

If there's anyone that can help us, I would appreciate it IMMENSELY. Unfortunately, our company is registered in the European Union - are there any regulatory offices that could help us?

Best of luck to everyone!

$120,000 a year!!! Ouch! I fill your pain, I know it isn't much but if you click the link in the OP there is a link to contact the people taking them to court! Report your case to them, the more reports of paypal holding money for no reason, the bigger the case they will have on there hands. I hope you get it sorted bro that's alot of money.. Gonna be watching this case like a hawk!!!

 

[kelvincuts]

Papal believes that buyers are always innocent and sellers must be the bad ones...

 

[dunker]

dunker, there's a bst for your problem, just search for a bit.

Hey Chris -- I'm sorry but I don't know this... what's a "BST"?

Dump them and go with 2checkout. You can accept credit cards, debit cards and paypal with a 2CO account.

We're certainly moving away from PayPal as soon as possible. How does 2checkout compare with ClickBank?

$120,000 a year!!! Ouch! I fill your pain, I know it isn't much but if you click the link in the OP there is a link to contact the people taking them to court! Report your case to them, the more reports of paypal holding money for no reason, the bigger the case they will have on there hands. I hope you get it sorted bro that's alot of money.. Gonna be watching this case like a hawk!!!

I have already reported our case to the law firm you mentioned yesterday before posting here. Although our issues might not be relevant to their case (we're not based in the States), it could still help them somehow.

I really hope something turns for the better... and soon. The current situation is absolutely terrible.

 

[zebrahat]

It's about time!!!!

 

[shaddelick]

Class action lawsuits are always good in the short term. But they always come back to bite back hard for the everyday users

 

[jox51]

Thank you for this find. I submitted my contact info. Paypal is holding my funds also. WTF!!

 

[MrGrumpy]

look at the latest on this. https://cms.paypal.com/us/cgi-bin/?cmd=_render-content&content_ID=ua/upcoming_policies_full
paypal are updating their TOS to prevent people joining any class action against them!