PayPal Interesting News

Paul Myers posted the following on Tuesday, January 26, 2016.
What is interesting is the promises PayPal made when they
paid their fine of 3.2 million and why they chose to pay it.

“Interesting PayPal News”

Paypal has agreed to a class action settlement in a case that
got started back in 2010. It arose from claims regarding their
handling of what they saw as potential problem accounts.

Over the years, there have been a lot of people who’ve had
accounts limited or closed, with holds of as much as 6 months
put on their funds. Others have been required to maintain
revolving reserves.

While these have impacted the affected sellers in a lot of ways,
the basis for the suit appears to have been failure on Paypal’s
part to properly notify customers and to allow for an appeals
process. There is also the issue that sellers were not told what
prompted the actions so they could be avoided in the future, and
failed to pay interest on the held funds.

If you had an account closed or limited between April 19, 2006
and Nov. 5, 2015, or a reserve put on your account during that
time, you may be eligible for payment under the settlement. For
details, go to accountholdsettlement.com

….

What is more interesting, at least to those who watch this
industry, is the list of changes they’ve agreed to make.
They have agreed to improve the information they publish about
their policies on closures, holds, and reserves, which should
make it easier to be sure where the lines are.

They’ve also agreed to communicate the reasons for specific
actions to the account holders, when it doesn’t conflict with
their security policies.

Over the years, I’ve heard a lot of stories about these
situations with Paypal. Most of the time the actions seemed
justified if you could get any real details. Others… not so
much. Most of the time, even the account holders could get
nothing specific in the way of answers. And as it turns out, the
number of people eligible for claims exceeds 10 million,
according to the news on this.

Much bigger issue than was obvious.

It should be noted here that Paypal has not admitted any
wrongdoing. They say they agreed because the 3.2 million dollar
settlement was cheaper than the costs of fighting the case. I
believe that’s probably true.

Either way, the added clarity on how they make decisions should
help people avoid issues in the first place. And the ability to
get more specific information when something happens should make
it easier for those who have problems to get them fixed.

In the long run, that’s probably good for sellers and Paypal both.

Looks like a win all the way around. ” end of Paul’s Post

Keep in mind, if you have issues with PayPal that have not been properly
resolved to suit your case, then you might quote this post or you might
wait to see if I can find that case and post the LEGAL outcome here for
your discretionary use.

© 2016, Fran Klasinski. All rights reserved. on republishing any parts of this post, you must supply a link to the original post