I hate paypal. Absolutely hate it and refuse to use it. We attempted to take PayPal to court, but the local attorneys wouldn’t even hear us out. They didn’t want to go up against a giant with a legal team like PayPal has. Regardless, I have had bad experience after bad experience with PayPal. This has made life complicated when dealing with online sales and non-local buy, sell and trade groups, but I just won’t use it anymore. While PayPal usually does right by the customer, they have a history of screwing the seller, even when the seller isn’t at fault. While it’s a great reassurance that PayPal has your back when you’re making a purchase, it isn’t enough. By siding with buyers and blatantly ignoring proof and evidence provided during the dispute process, PayPal is effectively targeting half of every transaction made through their platform; the seller.
I am going to do my best not to go into a tirade/rant/tangent about PayPal and instead, stick to the case. PayPal was finally called on their crap through a class action lawsuit filed in California.
About the Lawsuit
In the class action Zepeda v. Paypal, plaintiffs allege that PayPal did not handle disputes through their platform properly. In addition to this, plaintiffs also allege that PayPal placed holds, reserves, and limitations on accounts without proper justification, and without following proper procedure. Some accounts were even closed or suspended in a similar manner. Additionally, PayPal is accused of failing to provide consumers with annual error-resolution notices, and monthly statements believed to be required under the Electronic Fund Transfer Act.
PayPal has denied all allegations made in the case and admits no wrongdoing or liability in the case. Despite this denial, the plantiffs and defendant entered into a settlement agreement.
The timeline of the case has been periodically updated on the official website for the case, AccountHoldSettlement.
April 19, 2006 – November 5, 2015 Class Period, Inclusive
October 14, 2016* Exclusion Deadline
October 14, 2016* Objection Deadline
October 14, 2016* Claim Filing Deadline
February 8, 2017* Final Approval Hearing
Initially, the claim filing deadline was in May of 2016, however, this deadline was extended. The final approval hearing also had another date (I believe it was in December of 2016) that was again, edited and moved, likely based on legal motions/actions/etc.
Keep in mind, the original lawsuit filed by Zepeda was filed in 2010; this is a battle that has raged on over a long period of time.
While the official website for the class action suit against PayPal has not been updated, the case has been moving along. According to news publications on March 27, 2017, the class action settlement was approved. According to Courthouse News Service, U.S. District Judge Saundra Brown Armstrong approved the settlement in a 46-page order on March 24th. Additionally, Judge Armstrong granted the counsel’s fee motions in part, rejecting the fee request of an attorney by the name of Trubitsky. Judge Armstrong wrote; “[Trubitsky’s] actions resulted in additional delay and litigation costs – all to the detriment of the class… The court finds that she is not deserving of attorneys’ fees or costs on the ground that her actions, on balance, did not provide a substantial benefit to the class.
Now for the million dollar question… Or should I say $4 million dollar question?
When will payments be issued?
I, along with many others, I’m sure, have been repeatedly checking the official website for updates on the status of the payments, as well as calling the official number 877-854-4514 . I have even tried search engines and news publications. While I have found information on the approval of the settlement, there seems to be no information as to when payments will be made. Included parties in the lawsuit could be receiving as little as $3 to as much as $2,000, depending on the type of claim filed. We’re all on the edge of our seats waiting for news.
Have you recieved payment? Have you spoke to the representatives on the phone? What have you heard?