Class Action lawsuit against PayPal has been filed

The PayPal Class Action 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 Class Action 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 the Intake Form. All data will be sent to the attorney.

Click here to find out more

22 thoughts on “Class Action lawsuit against PayPal has been filed”

  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.
    Thanks.
    Top Site Info (Thad)

    Reply
  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.

    Reply
    • 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.

      Reply
  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

    Reply
    • 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.

      Reply
    • 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?

      Reply
  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..

    Reply
    • 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.

      Reply
  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

    Reply
  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?

    Reply
    • 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.

      Reply
  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?

    Reply
    • 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.

      Reply
  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!

    Reply
  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!

    Reply
    • 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.

      Reply

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