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Paypal class action lawsuit

Discussion in 'BlackHat Lounge' started by MrGrumpy, Aug 30, 2012.

  1. MrGrumpy

    MrGrumpy Registered Member

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    • Thanks Thanks x 4
  2. Tensegrity

    Tensegrity Jr. VIP Jr. VIP Premium Member

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    Good stuff!

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

    closedCaption Regular Member

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    *Fingers crossed*
     
  4. dunker

    dunker Newbie

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    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!
     
  5. Microleaves

    Microleaves Jr. VIP Jr. VIP

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  6. chris1025

    chris1025 Regular Member

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

    kamchatka Newbie

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

     
  8. cocococo

    cocococo Senior Member

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

    ericfishermans Newbie

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    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..
     
  10. michael8t6

    michael8t6 Regular Member

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    $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!!!
     
  11. kelvincuts

    kelvincuts Junior Member

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

    dunker Newbie

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

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

    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.
     
  13. zebrahat

    zebrahat Elite Member

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    It's about time!!!!
     
  14. shaddelick

    shaddelick Regular Member

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    Class action lawsuits are always good in the short term. But they always come back to bite back hard for the everyday users
     
  15. jox51

    jox51 Regular Member Premium Member

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

    MrGrumpy Registered Member

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