Wednesday, 27 July 2016

You’ve Got Two Months Left To File A Claim In PayPal Class Action Settlement

Earlier this year, PayPal reached a settlement in a class action lawsuit, agreeing to provide some users with payments ranging from $3 to $440 to resolve allegations the company improperly handled disputed transactions and placed inappropriate holds or reserves on some sellers’ funds. Now, the settlement has a firm claim filing deadline, Oct. 14. 

The settlement [PDF], first filed in September 2015, brought to an end a five-year-long class action lawsuit against PayPal.

According to the suit, plaintiffs alleged that PayPal and eBay — its partner at the time — placed holds, reserves, or limitations on accounts or closed or suspended accounts.

PayPal then allegedly failed to provide these account holders with annual error-resolution notices and monthly account statements required under the Electronic Fund Transfer Act.

While PayPal and eBay denied the allegations of wrongdoing and liability, they agreed to provide payments to active account holders between April 19, 2006 and Nov. 5, 2015 who had a reserve or hold placed on their accounts during that time, or who had their accounts terminated or suspended.

The amount paid to affected account holders will range from $3 to $440.

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To qualify for a payment, customers must file a claim form by Oct. 14. The court will then hold a hearing on Dec. 14 to decide whether to approve the Settlement.


by Ashlee Kieler via Consumerist

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