- Three users have filed a class action lawsuit against PayPal for allegedly having jointly frozen more than $250,000.
- The platform was accused of fraudulent conversion, breach of contract and even unjust enrichment.
- The plaintiffs seek the immediate return of their funds, and that PayPal explain the reasons for the freezing and retention of the funds.
PayPal is known throughout the world for several reasons, its instant transfers, sending digital money and its ease of use; but, it is also known for its high commissions and for freezing the funds of its users without warning, and sometimes for no apparent reason.
The latter is why the payment platform has been involved in a lawsuit since 3 US users have filed a class action lawsuit against PayPal who allegedly jointly froze them over $250,000.
Does PayPal Misappropriate Funds?
According to the medium Bloomberg, PayPal was sued by two California users and a Chicago businessman, accused of various financial crimes, including “Fraudulent Conversion” for allegedly misappropriating another’s personal property.
Too The platform was accused of violating civil rights and the RICO law (Used against money laundering and the fight against mafias), breach of contract and even unjust enrichment.
“PayPal has not informed the plaintiffs or their attorneys of the reasons for the actions the firm has taken. It has even told the plaintiffs and other customers that they ‘will have to get a subpoena’ to learn the simple information about why PayPal was holding and denying the plaintiffs access to their own money.”, expressed class action attorneys.
However, heThe plaintiffs are not only seeking the immediate return of their funds, but are also seeking PayPal to explain to the public the reasons for freezing and withholding the funds. of the 3 users. In addition, payment in return for an unjustified and unspecified punishment, as well as for personal damages and perjury.
What were the 3 users using PayPal for?
According to what can be read in the lawsuit, the 3 users used their PayPal accounts for different purposes, and apparently out of any illegality.
- The first has a store that sells anti-wart products. PayPal seized more than $172,000 from him.
- The second bought and sold clothes on eBay. PayPal seized more than $26 thousand dollars
- The third sold Yoga clothes and more than $42,000 was seized from him
It is read in the lawsuit that the 3 users would have contacted the American company to get their money back, but, PayPal would have responded with a refusal in all 3 cases for alleged breaches of its terms and conditions contracts.
A behavior that spreads throughout the world
If you are a regular user of PayPal, whether for personal or business use, you have surely heard of cases in which the US digital payment firm froze account funds without prior notice.
For example, In Venezuela, PayPal was recently trending after a wave of account blocking without warning. But, it is only necessary to search among the thousands of forums on PayPal’s Reddit, inside and outside the region to note that this is a worldwide behavior of the digital payment platform.
“PayPal violates its own agreement by failing to provide adequate notice to users whose accounts have been frozen. When PayPal informs users that it has placed a hold on their funds, PayPal does not inform users why their funds are being held, how they can obtain a release from the hold, and/or how they can avoid future holds on their accounts.”, the lawsuit reads.
In addition, according to the lawsuit filed against PayPal, the company cannot use its user agreement as “a license to steal” money from its customers.
It is because of this type of centralized and authoritarian behavior over the money and savings of others that “alternative” payment methods have emerged, including cryptocurrencies such as Bitcoin. However, a concern arises here because we must remember that PayPal has entered the crypto market allowing the buying and selling of digital assets.
Do you use PayPal, has something similar happened to you? Has the platform ever frozen your funds? If it happens to you, what will you do? but above all, would you trust PayPal with your crypto?
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