PayPal, one of the world’s largest financial companies, is being sued by a couple of its users after their accounts were allegedly frozen without explanation.
According to a complaint filed in California last Thursday, PayPal allegedly withheld certain accounts for up to six months for allegedly breaking its 65-page user agreement.
Two individuals from California and one businessman from Chicago have filed a lawsuit, alleging that PayPal’s action is illegalizing their funds. The three plaintiffs now want to turn the case into a class-action lawsuit on behalf of all other account holders whose accounts were suspended.
According to the users, PayPal failed to inform the plaintiffs and members of the rationale for the relocation. PayPal even told them that they would need a subpoena only to give them the facts on why their accounts were being held, effectively denying the plaintiffs access to their money.
PayPal’s behavior has even drew the attention of some of its most well-known users. Chris Moneymaker, a prominent poker player, has vowed to sue the corporation for holding USD12,000 of his money.
However, according to Eric Bensamochan, the lawyer for the case filed last Thursday, PayPal “mysteriously restored his money” mere days after posting the tweet, thus he can no longer be a party to the action.
PayPal is also accused of conversion, which is the improper exercise of dominion over another’s personal property, civil violations of the federal racketeer inspired and corrupt organizations act (RICO), breach of contract, and unjust enrichment, according to the lawsuit.
Plaintiffs are seeking repayment as well as unspecified exemplary and punitive damages.
Via: Bloomberg