Enlarge (credit: Thomas Trutschel/Photothek)
PayPal is facing a class-action lawsuit alleging that the digital payments company violated racketeering laws by freezing customer funds without offering an explanation.
When users contacted PayPal about the frozen funds , they were told they had violated the particular company’s “acceptable use policy” but weren’t told how that violation had occurred, the lawsuit says . What’s more, it alleges that in at least one instance, PayPal said that a user would “have to get a subpoena” to find out why.
“PayPal violates its own Agreement by failing to provide adequate notice to users whose accounts have had holds placed on them, ” typically the lawsuit says. When PayPal does let users know it placed a hold on their money, “it does not inform such users why such funds are being held, how they can obtain the release of the hold, and/or how they can avoid future holds being placed on their accounts. ”
Read 10 remaining paragraphs | Comments
