Paypal class action suit, for those of us who use paypal........

[Guest guest]

Hi all,

 

I found this on the news and thought it was worth passing on to all

of you, since many/most<?> of us have paypal accounts and also some

of us keep $$'s in those accounts, anyways, read on.......

______________________

In case you don't know about this and in case you tend to leave funds

IN

your paypal account, read this - I found it on the news on here since

I'd been hearing various rumors for a bit:

_______________________________

 

PayPal hit by class-action suit

By Troy Wolverton

Staff Writer, CNET News.com

February 21, 2002, 11:05 AM PT

A class-action lawsuit has been filed against PayPal, days after the

company's

successful initial public offering.

Filed Wednesday in California Superior Court in Santa Clara County,

the

suit charges PayPal with illegitimately restricting customers' access

to

 

their money. The suit asks for an unspecified amount of damages.

PayPal frequently locks customers' accounts if it suspects that fraud

played a part in a transaction, even if the amount in doubt is a

fraction of the total amount in an account, said Gail Koff, an

attorney

and founding partner of Jacoby & Meyers, which filed the lawsuit.

The result is that customers can't accept any more payments via

PayPal,

pay anyone through the service, or withdraw any of their money until

PayPal clears the transaction. That can often take days or even weeks,

customers charge.

 

" Under the guise of needing to protect consumers from fraud, they

themselves are guilty of fraudulant abuse of their customers, " Koff

said.

 

A PayPal representative declined to comment, citing the company's

post-IPO quiet period.

 

The suit is only the latest legal trouble to befall the online

payments

company. A lawsuit alleging patent infringement filed earlier this

month

 

forced PayPal to delay its IPO by more than a week. The company is

also

involved in a patent dispute with Tumbleweed Communications, although

that has not gone to the courts.

_________________________

Meanwhile, Louisiana has asked PayPal to cease offering its service

to

the state's residents until the company receives a license to transmit

money from the state. And state banking regulators in New York,

California and Idaho have raised questions about whether Paypal

operates

 

an unauthorized banking service.

 

PayPal customers have repeatedly complained about how the company

handles cases of suspected fraud. Several Web sites, including

PaypalWarning.com, have been set up to give voice to disaffected

PayPal

users.

In regulatory documents filed with the Securities and Exchange

Commission, PayPal warned that while it had taken steps to reduce

fraud,

 

it still incurred " substantial losses " due to merchant and consumer

fraud.

 

During the nine months ended Sept. 30, 2001, for instance, $5.8

million

was charged back to PayPal due to customers who disputed purchases

with

their credit card companies. During that period, the company lost $9.7

million, or about 0.42 percent of the total amount of transactions

through its service, due to fraud-related transactions.

PayPal raised more than $70 million in its IPO. The company, which has

never posted a profit, lost $18.54 million on sales of $40.4 million

in

the fourth quarter last year.

___________

Just in case you didn't know about this, thought you might want to?

 

Hugs,

 

Marilyn

[Guest guest]

I've started taking my money out as soon as it goes in. but I don't have a

leg to stand on, I'm in one of the states that Paypal DOES have a license

for Ah well, they are still better than billpoint

--

 

 

" cat_06088 " <menicholson7

 

Thu, 28 Feb 2002 02:32:09 -0000

 

Paypal class action suit, for those of us who use

paypal........

 

 

Hi all,

 

I found this on the news and thought it was worth passing on to all

of you, since many/most<?> of us have paypal accounts and also some

of us keep $$'s in those accounts, anyways, read on.......

______________________

In case you don't know about this and in case you tend to leave funds

IN

your paypal account, read this - I found it on the news on here since

I'd been hearing various rumors for a bit:

_______________________________

 

PayPal hit by class-action suit

By Troy Wolverton

Staff Writer, CNET News.com

February 21, 2002, 11:05 AM PT

A class-action lawsuit has been filed against PayPal, days after the

company's

successful initial public offering.

Filed Wednesday in California Superior Court in Santa Clara County,

the

suit charges PayPal with illegitimately restricting customers' access

to

 

their money. The suit asks for an unspecified amount of damages.

PayPal frequently locks customers' accounts if it suspects that fraud

played a part in a transaction, even if the amount in doubt is a

fraction of the total amount in an account, said Gail Koff, an

attorney

and founding partner of Jacoby & Meyers, which filed the lawsuit.

The result is that customers can't accept any more payments via

PayPal,

pay anyone through the service, or withdraw any of their money until

PayPal clears the transaction. That can often take days or even weeks,

customers charge.

 

" Under the guise of needing to protect consumers from fraud, they

themselves are guilty of fraudulant abuse of their customers, " Koff

said.

 

A PayPal representative declined to comment, citing the company's

post-IPO quiet period.

 

The suit is only the latest legal trouble to befall the online

payments

company. A lawsuit alleging patent infringement filed earlier this

month

 

forced PayPal to delay its IPO by more than a week. The company is

also

involved in a patent dispute with Tumbleweed Communications, although

that has not gone to the courts.

_________________________

Meanwhile, Louisiana has asked PayPal to cease offering its service

to

the state's residents until the company receives a license to transmit

money from the state. And state banking regulators in New York,

California and Idaho have raised questions about whether Paypal

operates

 

an unauthorized banking service.

 

PayPal customers have repeatedly complained about how the company

handles cases of suspected fraud. Several Web sites, including

PaypalWarning.com, have been set up to give voice to disaffected

PayPal

users.

In regulatory documents filed with the Securities and Exchange

Commission, PayPal warned that while it had taken steps to reduce

fraud,

 

it still incurred " substantial losses " due to merchant and consumer

fraud.

 

During the nine months ended Sept. 30, 2001, for instance, $5.8

million

was charged back to PayPal due to customers who disputed purchases

with

their credit card companies. During that period, the company lost $9.7

million, or about 0.42 percent of the total amount of transactions

through its service, due to fraud-related transactions.

PayPal raised more than $70 million in its IPO. The company, which has

never posted a profit, lost $18.54 million on sales of $40.4 million

in

the fourth quarter last year.

___________

Just in case you didn't know about this, thought you might want to?

 

Hugs,

 

Marilyn

 

 

 

[Guest guest]

At 11:04 PM 02/27/02, Michele at Home wrote:

>I've started taking my money out as soon as it goes in.

 

So do I. I never leave money in there. When I make payments from PayPal,

I have them pull the exact amount from my checking account. My PayPal

balance is always at zero.

 

 

>but I don't have a leg to stand on, I'm in one of the states that Paypal

>DOES have a license for

 

So is mine. Thankfully I've never had a problem with PayPal.

 

-- Sandy