Mass Arbitration against PayPal and Amazon

The PayPal mass arbitration lawsuit has been filed! We are hearing from a lot of people that PayPal deducted funds with the memo:

“Payment to: Paypal; PayPal’s damages caused by Acceptable Use Policy violation.”

See the newest information about the PayPal Mass Arbitration on this official page.
We will keep this website constantly updated.

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 visiting the Contribution Agreement page. All data will be sent to the attorney.

Click here to find out more

39 thoughts on “Mass Arbitration against PayPal and Amazon”

  1. I’ll right away snatch your rss as I can not in finding your email subscription link or e-newsletter service.
    Do you have any? Please let me realize so that I could subscribe.
    Top Site Info (Thad)

  2. Paypal has kept my $1,470 for 8 months, without explanation. Maybe they did keep it for UAP. They have not told me. They will not respond to me directly. I have sent them numerous messages and called them numerous times, without responding as promised. Most recently I filed a complaint with the Better Business Bureau. The BBB accepted my complaint and have forwarded it to PayPal. I have heard no more.

    • Have they reached back out with any explanation? To qualify for our class action, PayPal has to claim that you violated their UAP AND they had to have either locked your account or taken your money. If this applies to you please fill out the intake form on the other page.

        • The Intake form is no longer needed, please redirect to the Contribution Agreement Form. We will not contact you to confirm that we got your submission, we will only contact you with individual updates or if we need more information from you. Thank you for your patience.

  3. Should my name be on the lawsuit papers I downloaded the pdf of the paperwork filled and I didn’t see my name on there

    • No your name will not be on the papers. Once the matter is certified as a class action we will contact you and get you involved.

    • Should I be expecting a declaration to sign in the mail or can this be done electronically with some type of e-sign and when should I be expecting it?

  4. I filled out the intake form and was curious if and when I will need to fill out a proof ofclaims form… PayPal has had my account frozen since Feb 23rd 2021 with $3912.00 and still I call them weekly and still they give me no reason as to why my account was frozen and that I’m no longer allowed to use PayPal..

    • Hi Will, we have spoken before and I received your intake form. We will be sending you a declaration to sign by the end of the month. There is no need for a proof of claims on our end at the moment.

  5. Paypal has placed 114K ‘on hold’ causing serious damages to the way my business works. They never gave me a reasonable explanation for it, not by email or over the phone. What they said is that they will keep my money for 180 days and that in 60 days, they will re-evaluate my case to see if they will release the money. I need to know what i can do to join this class action. thanks

  6. Hi. PayPal has permanently limited my account less than 24 hours after it was created. I have no funds in the account, but I have constantly contacted PayPal to get a reason why this occured and everytime they have claimed I have fraudulent activity or that I have violated their policy but there is no fraudulent activity not could I have violated any policy since the account was brand new. Would I be able to join the class action case?

    • Yes it seems you qualify, please fill out an intake form on the website and we will reach out to you with any personal updates.

  7. HI Eric I really appreciate you standing up to paypal as they have STOLEN MILLIONS from innocent people and they try to hide behind the small print in their terms and conditions that they change monthly to cover themselves. Anyhow my name is Katelyn Hill I sent the form in a few days ago but paypal banned me perm after I had my unemplyment direct deposited. They waited til the account got up to $14,852 then out of nowhere they send me the 180 days your money is on hold for chargebacks which I have never sold anything on the account so I knew that was a lie but anyhow all they give me is general responds from bots that make no sense in regards to what I asked them. Literally its been 22 months and I have not heard anything from them. I never got any status message after the 180 days they never asked me to do anything literally not 1 email since my account was banned on July 1st of 2020 Can you help?

    • We have received your form. It seems that you fit under the commonality for the class action. We are currently opposing the arbitration clause, as per our recent post on the website. Once we move forward and we are certified as a class, we will be in direct contact to help you. At the current moment we have your information on stand-bye and we will contact you when needed.

  8. I sent in my form& I hope that I can find out what to do to get my funds released. It has been way past the 180 days, almost a year to be exact. Thank you & let’s stop this from happening to anybody else!

  9. Paypal permanently limited my account for “violating their terms” but won’t tell me specifically what I violated? While my funds aren’t nearly as much as some of these posters above, it’s still $400 less than I had yesterday. The transaction was done prior to my account being limited which is what makes me so angry. PayPal deducted the funds from my account and could have easily paid the recipient but instead they are “holding it” I can’t see how this can be legal? I have been with PP for almost 5 years, no disputes and only use it for Instacart, Ubereats and those types of things. What really impacted me is they also closed my Paypal Mastercard so suddenly closing a credit card in the middle of buying/selling my home dropped my credit score. My agent specifically told me not to apply or close any accounts until after we close and now I have a merchant closure on my credit report. The card also had a $10k limit. I feel bad for complaining where so many others have serious amounts of money being held. PayPal I feel draws names out of hats and randomly closes accounts without any real explanation? After five years, I am suddenly deemed “high risk”…PayPal is banking on millions of dollars of interest from other people’s money. I really am glad someone is holding then accountable, People could lose homes and go bankrupt over their actions. 180 days is an extremely unreasonable amount of time to keep people in limbo. I’m sure they will find a reason to keep the money. It makes no sense how a bank transfer that is annotated as an “Echeck payable to recipient” by my bank doesn’t actually get paid to the recipient? This could be so much worse which is what angers me the most!

    • Thank you for the inquiry.

      I have a few more questions before we proceed.

      Did PayPal claim you violated their acceptable use policy?

      And if so, I am assuming their holding period is 180 – days?

      If the answer to both these questions is “Yes” then please email me back after the holding period to see if you still do not have funds, as their is a chance PayPal will send them back.

    • Hello George, we have received your intake form and we have your information on file. Currently, we are not certified as a class action, but if we are in the future then we will contact you directly with the next steps…

  10. Hi

    I have emailed several times but have yet to receive a response. paypal froze money in my account after I issued a few refunds. I didn’t see why there was an issue since I communicated with those customers in a timely manner and issued full refunds. No cases had been opened against me and I did not break any rules regarding their acceptable use policy. I just sell electronics online. Can you please tell me how to proceed. I have filled the form on your site and I just wanted to know if your firm is proceeding with the class action lawsuit otherwise I will seek legal advice from a local. I am based in the UK. Can you please let me know as soon as you can.


    • Hello Alex,

      Thank you for the information and for filling out the form. We are not currently certified as a class action, but we are hoping that will change very soon. If you have filled out an intake form, just sit tight and we will be contacting you with any personal updates. Continue to look out on our website and social media for general updates, as one should be coming very soon…

  11. Hello.
    I am from the Philippines. My account was Permanently Limited since April 2022. Initially I could check on my funds on daily basis. On September 13, 2022 all the amount of more than USD 2,000.00 has been transferred to Paypal account. Did message Paypal via Twitter and told me I have violated their AUP. This is part of our conversation:

    “ This isn’t something we do lightly, and I can assure you that we fully review all factors of an account before making this type of decision. To protect PayPal and our community, we don’t disclose the specific reason why an account was limited. This would allow for the circumvention of our security. Unfortunately, there is no further information that myself or another agent would be able to provide other than what has already been stated in the notifications you’ve received. If there is a balance in the account, that will be held for up to 180 days to minimize any potential risk of loss due to disputes or chargebacks that may be filed during that period. We will make any remaining funds, less reversals or debits, available to you for withdrawal on or before 180 days. You will receive an email once your funds become available. While this is not a decision we like to make, it is sometimes necessary for the protection of our users. We appreciate your understanding, and hope you have a good day. ^CD”

    180th day shall be on my Birthday, October 27, 2022. I’m afraid I will lose everything.

    • I am sorry PayPal did that to you. Please make sure you fill out a Contribution Agreement Form, as well as following the instructions on OpenBlock Wallet. This will allow us to keep track of your case and help you during the mass-arbitration.

  12. Hi Eric

    Thank you for your reply and update on the case against paypal.

    Can you confirm whether the judge has ruled that paypal can opt for mass arbitration over a class action lawsuit or is that part of the case still pending? In other words, will this case definitely be dealt with as a mass arbitration case and not a class action lawsuit or is it still possible that you can proceed with a class action lawsuit?

    Secondly, is there a difference in compensation between an arbitration case and a class action lawsuit or will it not make any difference in the compensation sought regardless of the type of case filed?

    Will you be seeking for paypal to compensate all claimants for loss of earnings, damages, unlawful freezing of funds resulting in numerous issues that claimants have faced as a result?

    Will each claimant’s level of compensation be decided on a case by case basis or on the mass arbitration as a whole and shared between claimants?

    Is there a timeline on when the arbitration case will finally be settled?

    Lastly, what will it mean for the claimants who have their funds unfrozen because of paypal’s ‘review’ process, which they claim is conducted every 60 days (in my case), i.e. if paypal conduct a review of my account 60 days from the day the funds were frozen and then decide to release my funds back to me (or a portion of those funds) would that void my claim?

    Also, I have downloaded the contribution form. I am not sure which section to sign. If I am an individual do I sign the part that says “[FOR INDIVIDUAL INVESTOR USE FOLLOWING SIGNATURE BLOCK:]”? And in the part that says “By:” what information do I enter there? And I assume title means Mr/ Mrs/ Ms, etc. Correct? Do I need to upload the whole form with the signature or just the pages with the signatures?

    Please let me know as soon as you can and I will proceed with the signing and submission of the form as soon as possible.

    Sorry for the long winded email but I think it will help clarify for others viewing this thread as well to have as much information as possible.

    Best Regards

  13. I am trying to fill the form you uploaded on your website but I am currently living in Cnaada and there is no option for canada to choose which city I live in.

  14. Paypal stole 5800 from us in 2012, we purchased iPhone from a seller for a nonprofit fundraiser. The seller used a letter to a burgeoning as their tracking number. Even when we presented paypal with the letter, the tracking number, as well as a conversation with the Manager of burgeoning, they still kept our money!! Paypal needs to be ran out of business!!!

    • Unfortunately, 2012 is outside of the statute of limitations regarding this case, therefor we cannot help you with this matter. We wish you the best of luck.

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  17. Hello.
    Before 3 days PayPal hold my founts (12.650 Euros saying for 180 days) and block my account for the violated their acceptable use policy but is not say exact the reason.
    I am from Greece.
    What can i do?
    I must wait for 180 days first?


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