About the Class Action

Thank you for being interested in the Class Action against PayPal. We created this website to keep you updated and informed about the complaint against PayPal.

PayPal is holding funds and seizes money without explanation

“Payment to: Paypal; PayPal’s damages caused by Acceptable Use Policy violation.” – That’s the message our plaintiffs (and probably many more) saw when they logged onto their PayPal account.

paypal aup violation

Did PayPal debit you 2,500$ or more for damages in reason of the “AUP violation”?

Send us your story by submitting the Intake Form. All data will be sent to the attorney.

Lena Evans, one of the plaintiffs (PayPal user for 22 years) claims PayPal deducted $26,984 from her account six months after it got frozen without providing a valid reason. She had been using PayPal to buy and sell clothing on eBay, to exchange money for a poker league she owns and for a non-profit that helps women with various needs. 

Fellow plaintiff Roni Shemtov said PayPal took over $42,000 of her funds and never got an acceptable reason for why her account was frozen/terminated. She received several different explanations when she contacted the company: One customer supporter said it was because she used the same IP address and computer as other account holders, another claimed it was because she sold yoga clothing at 20 to 30 percent lower than retail. A third supporter claimed she used another account (which may be forbidden due to the User Agreements).

Shbadan Akylbekov, the third plaintiff, claims PayPal took over $172,000 of his money without giving him any explanation why the account got limited in the first place. Akylbekov was using the account of a company his wife owns to sell Hyaluron pens, which are needle-less pens that inject hyaluronic acid into the skin. After the money disappeared from the account following a six-month freeze, PayPal allegedly sent his wife a letter that says she “violated PayPal’s User Agreement and Acceptable Use Policy (AUP) by accepting payments for the sale of injectable fillers not approved by the FDA.” It also said that the money was taken from her account “for its liquidated damages arising from those AUP violations pursuant to the User Agreement.”

The official complaint

“Plaintiffs bring this class action against Defendant PAYPAL, INC. (“PayPal”) to recover damages and other relief available at law and in equity on behalf of themselves, as well as on behalf of the members of the class defined herein… This action stems from Defendant’s widespread business practice of unilaterally seizing funds from its clients’ financial accounts, without cause and without any fair or due process.

PayPal places a “hold” on Plaintiffs’ own funds in their own PayPal accounts. PayPal has failed to inform Plaintiffs and members of the class of the reason(s) for the actions PayPal has taken, even telling Plaintiffs and members of the class that they will “have to get a subpoena” to learn the simple information as to why PayPal was holding, and denying Plaintiffs, access to their own money.”

Download the full complaint (PDF) here:

Read what the press says

The world-wide-press is writing about our PayPal lawsuit filing / complaint.
We list some of the press and news agencies here:

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