Getting Your Money Back From PayPal: Take ‘Em To Court!

This guest-post by Drew is a followup to our “How to get your money back from PayPal“.  Drew is currently fighting to have his funds released by PayPal.  You can read Drew’s first entry here: Getting my money back from PayPal

After I sent PayPal the formal letter asking for them to release my funds, etc., Paypal called me this morning, and said So What, give us documents between my vendors and their wholesalers. I said it’s not legal, so on and so on, and informed the person I will go ahead and start the legal process, first by filing all the complaints.

These are the basic steps I took to file my lawsuit against PayPal:

  • Write up a brief, 2-3 pages in length, outlining the case being filed, points of interests, legal issues, damages, rectification being sought. Once all completed, make 4-5 copies of it all.
  • Go to county courthouse, or federal courthouse. Go to Clerk of Court’s office
  • File lawsuit brief in small claims, or other appropriate offices.
  • Have clerk of court notarize some of the copies, to deliver a copy to the defendant or their legal representation. In Paypal’s case, 1 copy to legal dept in California, 1 copy to legal representative of the state residing in (in my case, Overland Park Kansas, even though I am in Iowa)
  • For Iowa, the filing fee is $35.  Federal court, filing fee is $85.
    Filing fee’s for each jurisdiction are different.
  • Although not required, make Lawsuit Public – Paypal will hate that tremendously.  Plus it will cost them much financial resources, just for the initial presence in court.

I am quite sure that Paypal got my email this morning after i finished all the complaints with the FTC, SEC, federal reserve, California attorney general’s office, and the California justice dept.  A lot of stuff, but i am ready to play the hard ball game, that will cost them a lot more than it is worth.   I am seeking 72 hours for their representatives from 1 state away to appear in court or face default judgment.

My legal points are as follows:

  • Paypal voided their TOS & agreement when they asked me to conduct criminal activities to get what they want.
  • Paypal is operating as a financial institution with power of seizure, without legal authority to do so.
  • Paypal is committing felony fraud (possible laundering activities going on as as well, since it seems to be widespread and ongoing), but just my own money is $2,253.36
  • Paypal is refusing to release funds, not belonging to themselves, which is called grand theft.

If they would not have ask me to commit a crime, then their contracts are legal. but once they asked me to commit a crime, their contracts became null and void. That is law.

*note, by asking for me to commit a crime, I can also ask for punitive damages. When they did that, it opened them up to being liable

65 thoughts on “Getting Your Money Back From PayPal: Take ‘Em To Court!

  1. Did you read the TOS?

    You can’t file a lawsuit against Paypal in Iowa. In fact, you could owe attorney’s fees and court costs to Paypal as a result of filing in the wrong place. If you don’t withdrawal the lawsuit, Paypal can have it dismissed for improper venue and lack of jurisdiction. Then, they can stick you with up to $1k for fees and costs.

    You should seek legal advice from an attorney before spouting tips on how to practice law on a blog. Saying something on a blog post is one thing. Proving it in court is another.

    I’m not on Paypal’s side by any means, but you’re taking the filing of a lawsuit entirely to lightly. Filing a complaint is hardly as easy as “Write up a brief, 2-3 pages in length, outlining the case being filed, points of interests, legal issues, damages, rectification being sought. Once all completed, make 4-5 copies of it all.”

    “Points of interest” don’t go in complaints. There’s a lot of legal research concerning the viability and grounds for your relief that needs to be done before filing a complaint. Additionally, proper procedure must be followed in order for the complaint to be effective. Again, you really should talk to an attorney to keep from digging yourself deeper into the hole you are already in.

    See below from the Paypal TOS:

    14.3 Law and Forum for Disputes. Except as otherwise agreed by the parties or as described in section 14.2 above, you agree that any claim or dispute you may have against PayPal must be resolved by a court located in either Santa Clara County, California, or Omaha, Nebraska. You agree to submit to the personal jurisdiction of the courts located within Santa Clara County, California, or Omaha, Nebraska for the purpose of litigating all such claims or disputes. This Agreement shall be governed in all respects by the laws of the State of California, without regard to conflict of law provisions.

    14.4 Improperly Filed Litigation. All claims you bring against PayPal must be resolved in accordance with section 14 of this Agreement. All claims filed or brought contrary to section 14 shall be considered improperly filed a breach of this Agreement. Should you file a claim contrary to section 14, PayPal may recover attorneys fees and costs (including in-house attorneys and paralegals) up to $1,000.00 USD, provided that PayPal has notified you in writing of the improperly filed claim, and you have failed to promptly withdraw the claim.

    1. Dude get the f outta here. If he lives in Iowa and PP is in CA. He can file in Iowa. Minimum contacts buddy. Since when does he have to pay for filing in the wrong place? The worst case scene Ril they file the equivalent to a motion to dismiss in the Iowa court. As far as your TOC snippet that bs is well bs because it has already been established PP is trying to insulate themselves from being sued. Since you know so much about the law find that case.

      1. Criminal cases are filed in the jurisdiction where the crime occurred. If the victim resides in Iowa, the filing of a criminal case is made in Iowa. Misappropriation of funds and interference with the ordinary course of business is a criminal act prohibited by state and federal statute. PayPal is subject to the state statue, including the criminal code, in each state where they have chosen to register, license, and conduct business. Terms of service agreements only govern where there is no conflict or violation of state statute.

    2. Why isn’t there a process in easy English for working Americans to be able to file on these company without a bunch of hidden this and that. Simple American English please. I have right to represent myself in court and so should anyone else. I say try to go forward always.

    3. Fuck tht paypal worker dont let fear drive u tht proves paypal dont wana ge t sued if ur broke becouse they got ur money how can paypal sue u and collect ur broke they cant and they know this only u can collect if u sue

    4. you do not have to file your civil suit in California. PayPal user agreement has already been challenged and federal courts have determined that the user agreement is unconstitutional. You can file your civil suit in your local Court.

  2. when paypal asked me to acquire contracts between my vendor and their supplier, they conducted a breach of contract by asking me to participate in an illegal activity. Only the court or a law enforcement agency can require such documents. – Contracts 101: A party with a mutual agreement cannot ask another party within the agreement to act in an unlawful manner. Thus, their tos and agreements are void.

  3. and ted…

    1. my first filing is Form 1 of Iowa small claims. It is Action For Money Judgment. I already have it done and am preparing to file at the clerk of court in the morning, pending a meeting at paypal this afternoon. Fee is $35 and does not require the outlining brief for response to their response.

    2. All cases that have asked to keep jurisdiction in the jurisdiction have won, because Pypal has never been able to legally prove why private individuals should be forced to bare the costs of such travel. – I am also in Iowa, so grounds for moving the case would be void. it is only 2 hours from Paypal. And paypal does have local representation. There are mountains of cases to use in that matter.

    3. I have assistance from attorney’s.


  4. The PayPal click-through agreement is a contract of adhesion that just happens to be unconscionable. As such, it is invalid. It was invalid a ruled in 2002 in a California court, and it is invalid today as will be ruled in Florida where the venue and other parts of the agreement are being challenged in Circuit Civil Court.

  5. Hi there just to say thank you because i did everything you said and i got my money unblocked from the account within 1 week, my account is still limited but i got the money out i now use moneybookers

    1. They have my money and I’ve been trying for 4 weeks to get my money out and account unlocked. What did you do exactly, did you file? Or simply tell them you’re filing? I’m in New Zealand so I have to go via Singapore or it says a local agent for arbitration. I’d simply prefer to file a small claims here in NZ but Im wondering if that will work. Off to speak to a lawyer.

  6. Drew
    How is your battle? I would love to see the update to this case.
    I have a very similar case with paypal. They are holding more than 5000 in my funds and each time I submit them documents they ask for more. It looks like it’s a never ending story with them with the whole purpose to get my money.

    1. That is exactly what I am going through right now, they promised to refund my client so the client can transfer the money to a different Paypal account, but they’re promised failed, still, no further action was done. And they keep asking for documents, and I keep sending them but they will ask more. If they are only after security then all my conversation, calls, and document should suffice. They are a total fraud their game is really to control the money of those people who uses their service.

  7. I am think of taking them to court but wasn’t sure if I can file in my home state of Florida. This is a biggie $30,000.00. The sale was $60,500.00 and the first payment of $30,000.00 was a deposit. My contract with the end user has terms and conditions for my protection. To cut a long story short, after almost 3 months of being screwed around by the buyer and still not receiving the balance ( 7 days maximum is in my contract) he decides he’s changed his mind and wants a refund. I was considering taking him to court to enforce the contract anyway.
    Paypal put a freeze on my account and sent a claim, after 10 days they ruled in my favor and closed his claim. Immediately after I get a new, second claim citing the buyer has now contacted American Express who he sent paypal the funds through before it being sent to me.
    I had 10 days to reply. I called and asked a few questions before answering and the employee said don’t send too much information because Amex will just ignore the file and give him his money back, they don’t have time for too much detail. The claim was based on lies by the way.
    Before I had even sent them all the info, they sent an email saying they’ve sent him the money back and closed the claim….I couldn’t even respond because the open claim was gone. My account is now -$30,000.00. However, I had removed the funds into my account over 3 months ago. I am not giving them the funds back because they have ruled in his favor based on lies and without allowing me to answer and prove the claim as fraudulent. I am making a stand against this unscrupulous organisation that has no consciousness, it’s just a virus.
    They interfered with a legally binding contract and the buyer was in default. They are judge and jury and flaunt their power and stamp all over you.
    Paypal is a corrupt and parasitic entity with the backing of banks like AMEX etc. We must share our stories to stop this virus of a company spreading.
    Does anyone know if I can file a suit against them in Florida? I cannot face dealing with a lawyer and can represent myself in Florida, they can’t implement the law these days and drag things out to get as much money out of the misery as they can. What a total eff up the state of affairs we’re all in.

    1. The same thing happened to us expect we sold a truck on ebay motors for $7000. The guy paid for it all after 1 week, then we had to wait another week for paypal to release funds even though we where a business account with no negative feedback. The buyer knew the truck did not run and would have to have a come along to get it on their trailer as stated in ad and on phone. The buyer asked us to hold onto the truck a extra week as he had hired a semi truck to pick it for him. My husband informed him yet again to make sure they have a way to get the truck onto the semi. He said ok. The following week the semi trucking company came and of course did not bring anything to the truck from our driveway to the road. They asked if we would help them push and we said we could not but said we would give them the name and number to a couple of towing companies less then a mile up our road. They called the numbers but could not wait an hour for them to come help as they where already behind schedule and had another stop in another state to make yet. We then immediately called the buyer so he could be filled in and so he could talk with the company he hired to see what he could resolved. After he was on the phone with them for about 5 minutes they handed us the phone back. He said cant you guys just push the truck to the road and help them get it on their semi truck we again said no as we would be liable for any damages that occurred and put us at risk of injury. He got angry and started cursing . My husband told him we would store the truck at our residence if the wanted to get someone else out to collect it. He said he is already out a fee for them coming by and we cost him money for not helping and now he wanted his money back or he was calling ebay and paypal maliciously to get his money back. We said go ahead. We held up our end of the bargain.. By that night he did just that and guess what, even though we proved our case paypal still sided with him and reserved monies even though all the funds where not in there and then closed our account. I told paypal that even according to THEIR own rules stated on their page motor vehicles are not COVERED for refunds and if they want to give him his money back that they where now proud owners of a truck and what day and time would be best for them to come and get it! They said they do not buy vehicles and would not be picking up so they abandoned the vehicle. Not only did they give him his money back but all the positive money we had in the account and then froze our business ebay accout as well( which has over 200 positive feedback) and NO NEGATIVE! I emailed the CEO who reads my emails but wont respond but does forward them to his personal assistant who is of no use. All he can say is I understand, I would be mad too, blah blah blah. I said well fix it! You breached your own rules!! He stated he could not! Does anyone know of a civil lawsuit against them right now? I had received something a few months back about one in the mail but can not find the letter now. Thanks

      1. Issuing a refund where the buyer never received the vehicle might be an action they could defend, but closing your account sounds suspicious, and it goes without saying that closing it with other legitimate funds remaining in the account and refusing to return funds belonging to you is flagrantly fraudulent. The suspicious account closure might make the FBI wonder if they told the buyer he did not receive a refund, and perhaps closed his account after misappropriating the funds they claimed were reversed on that transaction. Was there any confirmation from the buyer that he actually received the refund? I would file a request for investigation with the state, and file a criminal case to recover all funds in your account which were not related to the incomplete transaction.

    2. I have the same issue with about the same amount and now my buyer has my goods and got all his money back. What did you do? I am 31k down because of this fraud.

  8. ps. I have the goods and the deposit but I’m sure they’ll be hounding me any minute for the return of funds, but they can hound all they want, I want the balance and and they can then send the goods to the buyer. They refunded an unscupulous buyer, it seems all infected parasites find each other.

    1. I’m in the same boat! Pay Pal has taken over$375.00 in one day from my account and I cannot even buy business supplies. I’m definitely getting a lawyer, as i do not tolerate this! I bring in over$150,000 a year to pay pal through my online website. I’m sick of these thieves, I’ve been on hold now for 50:19 they’re cowards and won’t answer the phone.

    I am looking forward to finding free consultation at the moment. I am willing to work with someone who can really get this case off the ground. Though because of this attack, I have lost almost everything and not able to access my finances, I can make payments and work to pay off what I can for services. I would like to sue for at least a million dollars and not settle.

    Hello, I am aware that there was a class action settlement and it looks like it is too late to file, but I have a huge mess with PayPal and I need help.
    Actually, they did not alert me via email, though they should have. They know my main email is this email address, which is associated with the account they were referring to; however I NEVER RECEIVED A NOTICE OF THE CLASS ACTION LAWSUIT. Upon checking my other PayPal account email, I saw it was already past the date of opting in the lawsuit, even though I too am a victim to account hold on my Merchant Business PayPal Account Balances.
    Is there anyway to forward my case to the same court? Is this too late, because I wasn’t sent the email update on it. Or is there anybody that could help me out with filing a complaint letter/ demand or following through with a settlement/lawsuit?

    Now PayPal is claiming I filed too many disputes, however this was done, because the company I was ordering from was highly unethical and doing illegal fraudulent business practices, it was NOT EBAY, but rather WISH.COM AND PAYPAL. Overview is that I order many products through a duration of a six month span from this company and while I did receive some products from them, they would often be damaged or empty boxes.
    I had to file about a dozen disputes about how I DID NOT Receive Any of my products and this company legitimately understood and agreed to refunding me. However at some point in August 2016, PayPal decided to “Part Ways” and Froze my account, limitation with no appeal,. Deemed me as a “High Risk” and blacklisted me from other virtual online banking businesses.

    I then tried to transfer my money back to a fellow, trusted client of mine in business, who had a PayPal account. Now PayPal is stating they limited my account due to this action (Linking my account with another); however they had already limited my account WITH NO RATIONALIZATION OR EXPLANATION. The Problem is the Company who are scam artist,, confirmed by many thousands of others who also did not get any products from this company, are forced to try to get ahold of them directly (which you get no real person or response to resolution) or forced dispute through Paypal’s “Merchant Buyer Protection”, which usually would work with escalation process. However, I am still in need of my Balance and Refunds which amounts in a total of 9195.21

    As well my Customer, who is also my business partner: RHONDA KAY, has her account limited with the account amount of:$662.87 (This was the individual I mentioned above, that I tried to transfer my funds to, well her account is now LIMITED WITH NO APPEAL as well, with our money. )

    I have had to refund customers and reprocess their orders with a different gateway, which has made my company look negligent and unethical/shady; this was the only means to staying in business, as they had limited my access to my funds to run my business. We are not a criminal business, as they are treating us, however, I have been in business for nearly a decade with NO REFUNDS, CHARGEBACKS, Or Faults on my end. Up until now, I have lost a lot of business, according to my website there are been hundreds of people who have tried to checkout and since I had no gateway with PayPal, I lost tens of thousands of dollars, if not potentially millions over this six month timeframe. Punitive damages are apparent.

    You would expect I just find another Checkout Cart Processor, well I did, and I was getting reports back that I was “High Risk”, so many other mainstream gateway sites such as “SQUARE,, Stripe, ETC” where denying my approval to conduct business with their services for my online websites. So, I could not have checkout access for my customers; forcing me to slow my business transactions to Check/Money Order checkout.

    Even after I explained my case to these companies clearly and succinctly, they have blacklisted for no reason and Have a good record of following through with my end of deals. I am honest, ethical and hardworking as a sole prop. Also, I was not able to make payments to my eBay account for merchant fees, I was not able to pay my loan on my car, and other credit card loans, and student loans; the result has virtually ruined my credit and put me in a bad standing with my credit score & Bureau.

    Below and in attachments, I have sent you the full details of my case (Email me personally if you need more information/paperwork & I will send upon request). If there is any means to free consultation or advise that can be forwarded to me, please do. I am going to the Attorney General of Tennessee with my message presented to you this week.
    This event has broken me financially and I almost have not enough time to do my research and footwork, before I can file all my paperwork, but I am doing the best I can while trying to maintain my livelihood.

    I have worked endlessly to try to get my money back, which has put my entire 8 year business operation to a sinking halt. I can hardly get back on my feet from the damage, because all my profits were liquidated into my expenses and profits were invested back into the business, by which all my money was held and literally was forced to send many orders out and never actually get paid for my products/services.

    I also must take this time out to write you and put all my documents of evidence together, while I am trying to remain in business and afloat. I have lost many longterm customers, who do not want to do business or cancelled normal weekly/monthly orders.

    * I know I still have to send a complaint file to San Jose, California, PayPal Finance department first.
    *I need to understand what amount I should request in my letter, as I have lost well over 25,000 dollars worth of sales and business just in a month’s time. Also not receiving my balance, or having to wait for 180 days which would be beyond the year 2017.
    *Has PayPal been secretly stealing money from my account? That is a question, I will never know. I paid off my PayPal Credit and they had not erased the fee associated with my Credit line, making it look as if I still owed them for this; when I have proof that I in fact had paid it back full.
    * I understand that court would be in California, but my location is in Tennessee and my understanding is that they have a business lisence in the State of Tennessee to conduct business, so there should be no ammunities for PayPal, in me not attending or being present in court.
    *I understand if they threaten to countersue or they refuse to show up for the court date that I would be rewarded, but if they continue to trial that I might have to pay hefty court fees, with money I no longer have or can obtain. Most all my money was in this account and I planned on ordering bulk from a company that I was going to resell and make a lot of money, but I never received the orders and needed a refund of my money.

    *I am hopeful that I would receive due justice for the illegal criminal acts of PayPal of deliberately attempting to shut my business down and put a tarnish on my name, business, and character for no reason at all. I was played by trickery and under the deceit that they were a trusted banking system, but they have proven theirselves as criminal frauds & Ponzi schemers.

    *So, not only cannot I access the small fraction of money I had left, but I will be pushed outside the 45 day period where I can execute a dispute and escalate to win my claim. This will get the entire Fraudulent company (Wish.Com) “off the hook” from paying me my refunds for the products I never received.

    *Since I made the order on the PayPal debit card (which was cancelled) I cannot retrieve my refund to my PayPal account balance and again am stuck in a rut. I WOULD NEED MY DEBIT CARD ACTIVE in order to obtain a refund.

    To Date I have a Copy of the email below, sent to the executive PayPal office and BC-Complaint Department and they claimed they called me and have lifted my account for 45 days. The problem is, no lift has been made, I cannot transfer my funds to my bank or request a check be sent to me. This deceit is so they can say that on record they tried to lift my account, when actually no real actions where made in my favor. I have audio recording of the entire conversation and all my emails to prove on my side what I say is true. I have receipt Transaction ID for every order, they wish to push my account in hold status to the day when they cancel my account and no longer will be able to access all this information… So I have made copies and sent in emails. I am publicizing this to the entire world on my website and getting the word out. People need to beware of this company, people need to take their money out before they steal all the hardworking money from trust worthy business owners.

    Please help advise me, if anyone knows how I can get my case in action & win for all my losses.

    Kindest Regards,
    Eric G Plott

    PS: why did PayPal send the Notice of Class Action Settlement to the wrong email account not associated with my PalPal account, while they were fully aware that I was eligible for claim rewards from all my losses due to PayPal? Can I please be exception to being beyond the date of filing for this Class Action Lawsuit, as I was not given to proper notice to my actual email account associated with this PayPal account. They instead sent it to my alternative account, keeping me in the dark about this. I was NOT Given proper notification of this Settlement. Please grant me access to Attend the Hearing for Settlement in December. The fact I was not notified at all.

    December 14, 2016*
    Final Approval Hearing
    * The deadline to file a claim, object to the settlement or opt out of the settlement has been extended to October 14, 2016 for class members who did not receive class notice on or before April 10, 2016. If you received class notice on or before April 10, 2016, your deadline to file a claim, object to the settlement or exclude yourself from the settlement has passed.

    This website has been updated with dates from the Court’s order setting final approval schedule.

    A settlement has been reached in a class action in which the plaintiffs allege, among other things, that PayPal improperly handled disputed transactions on PayPal accounts and improperly placed holds and reserves on accounts or closed or suspended accounts. Plaintiffs also allege that PayPal failed to provide annual error-resolution notices and monthly account statements under the Electronic Fund Transfer Act.
    You are a member of the Settlement Class if you had an active PayPal account between April 19, 2006 and Nov. 5, 2015. Certain Settlement Class Members who had a hold or reserve placed on their account and/or who had their account closed or suspended by PayPal are eligible to receive a monetary payment upon submission of a valid claim form.
    This notice summarizes the proposed settlement. For the precise terms and conditions of the settlement, please see the Settlement Agreement available at, by accessing the Court docket in this case through the Court’s Public Access to Court Electronic Records (PACER) system at, or by visiting the office of the Clerk of the Court for the United States District Court for the Northern District of California, 1301 Clay Street, Oakland, CA 94612, between 9:00 a.m. and 4:00 p.m., Monday through Friday, excluding Court holidays.

  10. hi could you please give me the details of the best defense lawyer against paypal for getting my money by paypal receipt !!!

  11. same story here. been using pay pal for 8 years + and now all of the sudden i have a hold on my funds each time someone pays me for 21 days which is insane. so i have to spend my money out of pocket to ship the items. i told them i don’t have the money to ship out the items if they hold the buyers payment. they just don’t care and said there is nothing they can do. they say its a high risk item or some BS like that. FRAUD and ROBBERY is what it seems like on pay pals end. they try to hold ur money as much as possible. If there are any law suits ungains them regarding this crap. I definitely want to get on that band wagon!

  12. I’m currently working with a law firm that may consider filing a class action suit for unfair business practices as well as a multitude of other potentially unlawful practices involving the collection of person(S) personal and sensitive information. There have been many similar claims around the world from customer’s and ex-employees as to how long PayPal keeps files on inactive accounts and allegedly sells personal information to third party entities. You can email me for more details on participation in the potential class action suit. It’s very common for PayPal to freeze their account holders funds to strengthen their financial gains and credit. A brief review has indicated a number of US and International federal violation’s. I will post another update soon so bookmark this page.

    1. Hi Richard,

      I am in the same situation where 30k is being held after sending them every single file they requested. For the last few months they held 25% of my funds which I so patiently went through. A few weeks later, they put me under review and are holding my money and limiting my account. As of right now, my business is hurting bad. Please email me, I’d like to work together

    2. I would love to participate in a class action law suit against those thieves at Paypal. I have kept meticulous records, copies of all emails back and forth, etc. They froze my account simply because I legitimately filed too many refund claims against fraudulent overseas vendors who advertised authentic gem stones and sent me glass fakes. I have the necessary test equipment to verify my claims and stated so in my claims. Paypal did find in favor of me in all my cases, but limited my account without any notification or explanation as to what rules I violated to incur this. I finally got a straight answer from one of the claims division employees that my acccount was limited only to prevent me from filing more fraud claims against unethical vendors. They violated their own buyer’s protection policy as a result. Instead of protecting the buyers they protect the fraudulent vendors so they can keep on collecting their transaction fees. Why does the government not go after these evil bastards? Also, I am sure Paypal has not credited my account properly as to loan payments I have made in the past. It seems the more I pay the more I owe them. I would love to nail these thieving devils.

      1. Paypal intentionally makes it as difficult as possible to ascertain how well or how poorly they keep track of your credits and debits. They do not provide a monthly beginning balance or ending balance, or at least I have never received one. If you decide you need to scrutinize your account statements you must start at the very beginning when you first joined Paypal. After 11 years and thousands of transactions that would be virtually imppossible to easily accomplish myself. I would have to hire an accounting firm.
        Paypal is virtually a banking corporation. Why must we, the defrauded customers, work to bring them to court? Why do the federal and state banking regulations not apply to them? The FDIC states that conventional savings procedures don’t apply to Paypal. We need to put more pressure on the government to force Paypal into compliance even with Paypal’s own stated rules and regulations which they continually violate with fervor. Government enforcement would be a much more effective tool than a long drawn out court battle which could have the potential to be settled out of court as the last major lawsuits against Paypal. Those settlements ended with only the laywers making any significant money. The defrauded paying customers got virtually nothing or very little out of it. Part of the settlement included PayPal not having to state they did anything wrong. Paypal basically got off the hook when they could have been severely beaten. If you take them to court you must resolve to go all the way to judgement for financial and punitive damages against those bastards or it’s all for nothing. We need a judgement or government intervention which will force them out of their holes and compel them to change their illegitimate business practices. If not, you can only expect many more customers getting screwed and people’s lives being ruined with impunity time and again.

  13. I’m currently working with a law firm that may consider filing a class action suit for unfair business practices as well as a multitude of other potentially unlawful practices involving the collection of person(S) personal and sensitive information. There have been many similar claims around the world from customer’s and ex-employees as to how long PayPal keeps files on inactive accounts and allegedly sells personal information to third party entities. You can email me for more details on participation in the potential class action suit. It’s very common for PayPal to freeze their account holders funds to strengthen their financial gains and credit. A brief review has indicated a number of US and Intn’l
    federal violation’s. I will post another update soon so bookmark this page.

    1. I would like to join the lawsuit. Could you post the attorneys information? I have a business merchant account with Paypal and they are taking 35% of my sales and putting it in an account for 6 months without interest. This was done because our sales were higher than normal. This hold will put me out of business. I need help.

      1. I’ll post the contact information soon (regarding the lawsuit action). At this early point, they’re gathering the facts and building incriminating evidence against the defendants.

        1. Hi,I was reading all your post an I’m currently trying to get Paypal to uplift this 20% hold on my business account. I have not sold any items in a month which I lost of 7,000 to 10,000 in monthly sales. Can you please tell me what is needed to file a lawsuit against them as I am located in Los Angeles, CA. Your help will be greatly appreciated. Thanks

        2. Hi,I was reading all your post an I’m currently trying to get Paypal to uplift this 20% hold on my business account. I have not sold any items in a month which I lost of $7000 to $10000 in monthly sales. Can you please tell me what is needed to file a lawsuit against them as I am located in Los Angeles, CA. Your help will be greatly appreciated. Thanks

  14. I am in washington state and ordered 7 laptops from govt liquidations only 6 came in mail and they were cannibalized. I did a claim sent info to the company and nothing back I read online they stall and do not do anything about it. Long story short I was told prior to doing a claim to send them back and paypal did a claim and the company threatened me with the cops and a lawsuit. Paypal sided with them saying this is not how you settle a claim yet it like talking to a child. Collusion happened and I have tourettes so when talking to the company they mocked me. I got in touch with my atty general and they sent me an email after i showed all evidence and the company not responding back that is was soly not forced on their part to contact my atty general on the issue. I found out they took money out of my checking account vs credit card so i later contacted the bank and 60 days anything after they cannot do a thing to help me. The auction site is run like ebay they shut down my account when i filed a claim with paypal and i found out they had a back door to every auction and i had proof. Even the shipper sent me a pdf file for a possible claim and the company said the shipper should never have picked any items up and contact me. So after all this and being a member since 2004 paypal closed my account and then ebay was hacked and i had a moroccan man post his gmail account to the paypal/ebay and transfer money. He was living in chicago i looked him up on facebook and he was one of the workers i remember i tried talking to with paypal. The ebay people in ireland told me they were filing criminal charges against the man and we will see. I contacted his university because i read he is taking computer science. He was trying to sell 30,000 dollar cnc equipment and medical equipment on my name. It took the top people with ebay to have his paypal removed and 8 hrs on the phone later it was taken care of. Be careful never use paypal and never when buying anything on ebay to let them save your credit card number he was taking 100 here 20 there i am just happy i found out after i never use ebay. Paypal though even the people who work for them are crooks they have people over seas who decide on claims and never have I had an issue in the past. I learned a lot from all this one man sued paypal for 150 and paypal fought that tooth and nail.

  15. paypal is killing all the business. my account worth 3,000 US Dollars they keep on holding for more than a month. since I am supplier. I got alot of order online and they keep on holding and holding once we accept the payment. call center staff are very unprofessional. they drop my call many times. I called US call center staff and they keep me on holding for 30 minutes.

    I wasted alot of money calling them. I got some disputes since I loss alot of money sending and paying the shipping fee of my customers.

    So what I can say paypal is scammers. they hold your money for their own benefit although they get alot of share from my selling.

  16. Any update on this class action lawsuit? I have been jumping through hoops from PayPal the last week. I only have 1100 in my account, but they have it frozen until I prove what I am selling. I sell homemade paint brushes, and other arts and crafts, along with antiques and other items I find at garage sales usually. Of course I dont have any written transactions, and they and saying I can’t touch any of my funds in which I use to buy new stuff. email me at with any new info.

  17. Hi all , same issues with pp holding back more than 2400 euros , please let. me know how to join a legal case, any support neede I m with you Mke

  18. Currently trying to find legal representation or information on filling myself in court. Sold an expensive computer using our paypal and ebay business account as we are an LLC. The item was reported to be received damaged by the recipient, they stated that something must have happened by the shipping carrier and since the item was insured we requested they return the item to their post office and file a warranty claim which we opened up already. They filed a claim with first ebay and then with Paypal, we notified both ebay and paypal that the item was damaged during transit and since it was insured and shipped with special handling they must have the claim process started so the issue can be investigated per the USPS insurance policy. Paypal noted the account of this and then a few days later ruled that the buyer should be refunded the full amount upon return of the item. We then contacted Paypal again and explained that per USPS instructions on handling insurance claims the buyer must return the item and complete the specific claims form which we provided the form number to them that they said they would send to the buyer and wait for their response. We also reached out to the buyer and asked them again to return the item to their local post office and complete the insurance return request that we already opened up on the item. The buyer then used the paypal process of returning the item since paypal already ruled in their favor and all they had to do is return the item, we received notification that the buyer had shipped the item and supplied a tracking number using the paypal system and ignoring any instructions we gave or instructed paypal to give. We then called paypal yet again to understand why we were told that an update would be supplied once the buyer received the instructions from paypal on handling the insurance investigation of the item and this time paypal tells us that since a decision was already reached that the buyer has the ability to ship it back so we receive the item and they will receive the refund. We explained that whatever damages that occured during the shipping are covered under insurance and allowing the shipper to ship it directly back instead of being investigated is voiding the insurance coverage and what exactly is the point of getting insurance on items if paypal just allows buyers to ship items back however they wish without going through an insurance claim process. The paypal rep tells us how they are providing a service to us allowing the customer to ship the item back since if they were to open a dispute with their credit card company they would be able to keep the item and not have to ship it back which is a benefit that paypal is providing us as a business? I asked to speak with someone in their legal department and was given an address to send a letter to? This is 2017 give me a break, our paypal account is now negative almost $3,000 because of this issue and we refuse to fund the paypal account since Paypal is in the wrong and obviously neglects high value items that are shipped insured and at this point the item will most likely come back completely destroyed as the buyer has no incentive to take any care in shipping the item back as long as paypal can verify it was received. We could also receive a back of rocks as well and paypal will still most likely not change the outcome of the case awarding the buyer their refund and our business is at a loss. We also are not even able to complete the insurance claim as it is now in transit back to our office instead of being handled as they advised, so the extra cost for additional shipping insurance was also a complete waste. We can be reached at

  19. In 2 weeks I am to go on a special trip to Mexico and I relied on sales for spending money. I wake up to this shocking email…paypal permanently limited my account without warning. It was for some anti-virus software I sold on ebay. I sold this software many times and got positive feedback. So many other people sell this anti-virus software on ebay and i’m sure they use paypal too. I feel like i’m being picked on. I sell items on ebay and paypal is now holding about $3000…just for a $20 anti-virus software which they thought was a violation of their acceptable use policy. Paypal is not giving me a chance to appeal or correct the issue. It is not fair for paypal to hold the funds of all my sales for 6 months just for one small item. That $3000 paypal is holding hostage was to be my spending money for my trip. Now this puts me in a state of panic and I may have to sell things in my home or take out a car title loan for my trip money. This is unfair and there has to be some action I can take against Paypal. I am not asking for Paypal to reinstate my account, but just to release the funds and close my account. I am never using paypal again.

  20. I, also would like to join your lawsuit. Paypal has limited two of my accounts stating that I violated TOS by selling a link to a booksite that was offering “free” copies of “fire and fury” if you signed up for a free trial on their site. My ad on ebay explicitly stated that the buyer was only paying me for my time and research in finding and transmitting this item to them. As the book shot to the top of the best seller list within hours I had over 200 buyers for this ad. When the payment was made I would forward them a copy of the web address where they could sign up for their free trial.

    Paypal decided after sales of over $500.00 in one day that I was in violation of TOS for copyright infringement. I explained to them what my listing actually said because it is obvious they did not read it. I gave them the url of the website that offers the book subscription. I further ask them to do a search on the books title to see how many people were actually doing what they accused me of.

    Well I got a email back from their legal department today that tells me that their decision stands (like I was surprised!)

    They are now holding over $1,200.00 of my money for the standard 180 days and my ebay accounts are trash because without Paypal (their sister company) no one completes the checkout process.

    Below is the email I sent to them. You already know what their emails said to me so I will not waste the space.

    ———- Forwarded message ———-
    From: Kelly Van Fossen
    Date: Mon, 8 Jan 2018 13:36:59 -0800
    Subject: account suspension may have been a mistake.

    I was sent the attached 2 emails just after midnight Sunday. I believe these to be canned and while you say I can not appeal them I do believe you are incorrect in your judgement of my listings and ask you to review and correct your decision asap.

    First off as I said I believe them to be canned responses tripped automatically by maybe the verbiage in my listings, but if you will manually read the offerings you will see that I am offering the buyer information as to where they can purchase the items not the items themselves.

    My second point is that there are many sellers on eBay using Paypal as their processor that are actually “pirating” the exact information you are accusing me of “pirating” and their ads are up and flourishing. I have also attached a “search” on ebay for “fire and fury” to give you a small sample. I actually purchased a pdf for myself from one of these sellers because it is cheaper that the ones on the sites I send my buyers to sign up for to download the information as part of their free trial. This is the site I send them to once they make their ebay payment to me.

    As you can see, I am not sending them the actual book itself in any form. only a site where they can sign up for free for the book.

    So with that understanding I ask you again to reinstate my account as I have done nothing to violate your TOS.



  21. How should I go about taking legal action if I live in miami…my situation is that I am being hit with numerous chargebacks on top of oweing money back because my ex friend was sending me money through paypal to deposit into my bank in order to send her the money back through paypal and then she disputed all of those transactions claiming they were unauthorized so now im in dept of 470 and even though i explained to paypal that I am definitely not in the wrong, they basically told me they dont care I have to pay the money back or else. So what legal steps do I need to take against paypal ?

  22. Paypal is doing the same to me. I had to pay them $1800.00 to unfreeze my account. They then went into my account and dinged it $2800.00 with retry payments. I was negative in my account, and couldn’t pay my bills, medicine, rent. They now are holding more money again. I am at $400.00 seized by paypal. This is UNLAWFUL. Isn’t their an attorney willing to step up and help us all?

  23. I am being sent to collections. This will affect my credit! A client purchased insurance and signe all document with full disclosure. He lost his lease and mail notices returned. He filed a dispute with Paypal stating 1. It was a recurring payment. (that was a lie) the policy was paid in full for the year. 2. He requested a refund six month later and Paypal dinged by account. I contact paypal and disputed the dispute and faxed all signed documents. When I followed up with Paypal they said it could take up to 90 days to resolve. I call periodically and was told that his bank refund him the money but paypal was still looking into it. I followed up again yesterday and the automated system recognized my number and routed me to “guess where” a debt collection agency. They are going to hit my credit report. What happened to them looking into the documents? My next move is to file a complaint with the State Attorney General regarding credit report fraud. I am done with Paypal. A wire transfer only cost $20.00 and is not reversable after about 45 minutes. This could really start a trend. Drive your car around for six months, cancel the credit card/debit card payment and say you want your premiums back. Homes, business, wow.. what new trend. Paypal need to have it’s hands slapped hard.

  24. Hi. This is an absolute horror story. Our company account is in copywriting and proofreading industry targeting postgraduate students. Our PayPal account recently has been limited as part of PayPal crack down plan on essay writing services, something they call it “essay mills”. Our account has been suspended without any notice giving the fact with had almost no refund, charge-back or dispute. And we didn’t have any payment processor for a week which resulted some serious loss as it was in the middle of high season.

    They have held our fund, that’s shocking that they could seize all your fund suddenly. And we have been told they are going to hold it for 180 days for “further investigation”. We called them on several occasions and informed them that we only do academic help. We even don’t have any tangible product or inventory as we are a service company.

    However, they said they have suspended us for violating their terms. We asked them to provide details on exactly what terms have been violated and they didn’t provide any information. If it was a bank in the UK or US doing this, they would have been in serious trouble.

    They asked us to provide the source of our payment and we provided our website for them. They also asked us to provide them more details of the products we have been selling. And we did provided them some of our project. Since then, we only have been receiving auto reply emails like “your account is suspended and this decision is final”.

    I am wondering on how you could help in such a situation. That has put us on an enormous situation as we need to pay our staff and really have no fund. I had to fire a few member of our terms simply because I have no access to my own money for six months. This is so unfair.

    1. Did you get you issue resolved? Our Company is going through the same thing. If so how did you get the issue resolved.
      Best Regards,

  25. PayPal has been sending my withdrawal checks to my PO Box for several years. I verified this address several times with them and one of their CS representatives even put a note into the system telling other reps that the address was verified. Now they are refusing to mail me a check (balance is over 2K).

    I had this problem before and filed a complaint with the FTC. As a result someone from their executive office called me and then I was able to get my checks for a while. Now it starts all over again. When I called them, their rep said “we can’t send you the checks to your PO Box any longer because you could be living anywhere…”

  26. I’m a buyer on Ebay for the past 15 yrs. Lately, if I initiate a refund and even though the
    seller on Ebay completely agrees to give me the refund…all of a sudden a Paypal messages me that the seller has started the refund….BUT….Paypal holds on to the money after they withdraw it from the sellers account and makes me wait up to 2 weeks before I get my refund. Let’s all get together and Sue Paypal. When you’re a low life cheat as they are….eventually…you get caught and you pay. Let’s ALL make that happen.

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