PayPal Settles Class Action Suit for Improper Account Holds
The five-year-long class action suit against PayPal is finally coming to a close.
In the class action case of Zepeda vs. PayPal, both parties have agreed to a settlement with regards to allegedly improper account holds PayPal placed on some of its customers. PayPal released a notice of the settlement yesterday, directing users to AccountHoldSettlement.com to file a claim and learn more about the case itself.
The lawsuit was originally filed in 2010, with the plaintiffs alleging that PayPal and its partner at the time, eBay, had placed inappropriate holds or reserves on sellers’ funds. The organizations were also accused of failing to provide annual error-resolution notices and monthly account statements, as per the terms of the Electronic Fund Transfer Act. PayPal has denied all allegations but has agreed to the terms of the settlement to “avoid the costs and uncertainty of a trial.”
Active PayPal account holders between April 19, 2006 and November 5, 2015 who had a reserve or hold placed on their accounts during that time, or who had their accounts terminated or suspended, may be eligible for reimbursements of up to $440. Only one claim can be paid per account. Qualified users may submit a claim online. At this time, neither PayPal nor the courts have determined the claim filing deadline or final approval hearing.
About Bill Hardekopf
Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.