New PayPal User Agreement: No Class Action suits

[Eskara1862]

So, PayPal and eBay are at it again!  There is a clause in the updated user agreements that you must go through arbitration and can not ban together with other similarly affected (scammed/abused) PayPal/eBay customers in a class action law suit. This basically means that we would each have to go against a gigantic corporation individually rather than banning together and fighting as a group. But, we still have time to preserve our rights and opt out of the specific clause in the new PayPal and eBay user agreements. Even if you have no current quarrel with either company, I highly recommend you opt out of this clause. You never know what will happen in the future.

Here's a link to the Consumerist with more information and a template you can download and mail in.

[ponylady]

I already opted out. The sneaky little you know what's. 

But if I am thinking correctly they have two rather large lawsuits pending against them at the moment. So it really doesn't surprise me they went to these measures to try and protect themselves.

[kitkatvintage]

I thought Paypal had a "no class action suits" thing a long time ago? But I'm sure they can update their policy as often as they want to catch any newer users, loop-holes that have been found, ect.

I was thinking about something the other day: When PayPal holds funds on "new eBay sellers" until the buyer receives their item, is there not some kind of law stating that there should be interest paid to the person who's money is held by a large financial institution? I'm thinking this falls aling the same lines as an escrow account on a mortgage, as an example. I could be totally wrong on this... but I just can't help but think that Paypal/eBay has something to gain financially by holding on to those funds for an extra week or three.

[ponylady]

Here are the two lawsuits I was talking about:

http://www.ecommercebytes.com/cab/abn/y11/m11/i11/s01

And I believe one of them is a case about them holding funds.  I will have to go back and reread it.


The thing is their not the only one's either Sony, Netflix, and AT&T already added such clauses to their user agreements. The thing that ticked me off though was having to mail the dang thing.  They only did that in hopes that most people are to lazy to go buy a stamp and send it snail mail is my thoughts.

[Eskara1862]

I thought Paypal had a "no class action suits" thing a long time ago? But I'm sure they can update their policy as often as they want to catch any newer users, loop-holes that have been found, ect.

I was thinking about something the other day: When PayPal holds funds on "new eBay sellers" until the buyer receives their item, is there not some kind of law stating that there should be interest paid to the person who's money is held by a large financial institution? I'm thinking this falls aling the same lines as an escrow account on a mortgage, as an example. I could be totally wrong on this... but I just can't help but think that Paypal/eBay has something to gain financially by holding on to those funds for an extra week or three.

You're absolutely right, Kitkatvantage. The issue here is that PayPal doesn't have a banking charter and therefore isn't a bank.  PayPal certainly acts as a bank and I would like to see them forced to abide by the same regulations as banks.  Reg CC states that banks can't hold customer funds for more than eleven business days at the maximum. I had funds held for 30 days last year.  If PayPal is forced to follow Reg CC, then it will help a LOT of sellers.

Ponylady, you're totally right that they made it difficult on purpose. The policy is designed to be in their favor, so why should they make it easy for us to opt out?

[hokuspokus]

Hard to read for one who doesn't have English as a first language.
Gonna check paypal.nl to search for a Dutch version of this

[ShortyBoo]

Well, the template for the opt out letter is in Word and since I don't have Word, I guess I'm stuck not opting out. I rarely use PayPal anyway, so I guess it doesn't matter too much.

[Dyzarktarzk]

Does it includes PayPal transactions outside of eBay?

I'm not in US, but want to opt-out of this.  Is it even possible?

Post Merge: October 15, 2012, 07:07:39 PM

ShortyBoo, it's also in PDF and the text to just copy-paste and give format to it.

[Marigold]

Why haven't I heard about this before.  Did they send out something about it hidden in a PayPal user update?

[ShortyBoo]

Why haven't I heard about this before.  Did they send out something about it hidden in a PayPal user update?

I got an email from them on the 10th telling me about the new policy.

I found the text version (I have no idea how I missed it the first time I looked) and copied it into the program I do have (Works) and filled out the info and had my mom (it's her account, I just set it up and use it, with permission, of course) sign it. She doesn't understand why it's needed, but she said she'll send it out tomorrow.

[cobalte]

Does it includes PayPal transactions outside of eBay?

I'm not in US, but want to opt-out of this.  Is it even possible?

Seconded...

[RockinPrettyBeats]

Thanks Eskara for pointing this out. I'm going to tell everyone I can about it and fill it out as well.

Just to be clear, it looks like you have to do all this by snail mail right?

Anyways, between this and that supreme court case that's going on with that Ebay seller it's starting to seem like selling on Ebay is requiring us to constantly think in legal terms.

[banditpony]

I don't really ever plan to join a class action suit (for ANY reason), so this... this won't affect me. I would stop using paypal when I stop agreeing to their terms... That hasn't happened... yet. But it's good to know this information, so thank you

[tikibirds]

American Express has something somewhat similar to paypal called SERVE.
I think it works the same as paypal. The only place i see it advertised in on Zynga games on facebook.
But since ebay only takes paypal - not sure how much good it does. Although I did get a cute castleville debit card from it

[RockinPrettyBeats]

I don't really ever plan to join a class action suit (for ANY reason), so this... this won't affect me. I would stop using paypal when I stop agreeing to their terms... That hasn't happened... yet. But it's good to know this information, so thank you

lol, class action lawsuits are also for when Paypal wrongs a large portion of people.

For instance, you find out they randomly took out $10 out of your account for no reason. You aren't going to very well chase them for that type of money. However, if there are 50,000 other people who this has happened to a lawyer will jump in to defend the lot of you and one day you will get a check in the mail to right the wrong.

I've been a part of a couple class action lawsuits. They are important and quite frankly, I can't believe it's even legal to say you have to opt out. Ridiculous. Furthermore, even if you think you are somehow impossible to wrong, I very much suggest opting out. When a large corporation screws you, you need a recourse. Class action lawsuits are the only recourse for small people like us.

Why do you think Paypal and Ebay are scared of them? It's the only way to keep them in check.