PayPal has settled a $3.2 million class action lawsuit regarding an accusation that “PayPal improperly handled disputed transactions on PayPal accounts and improperly placed holds, reserves, or limitations on accounts or closed or suspended accounts,” between the dates of April 19, 2006 and Nov. 5, 2015.
In a statement to iDigitalTimes, PayPal said it has “voluntarily entered into a settlement agreement to resolve litigation regarding our handling of some disputed transactions, account holds, limitations, and reserves. Certain former or current PayPal customers may be eligible to submit monetary claims under the settlement. We put our customers at the center of everything we do and are committed to continually improving our processes and products to deliver great experiences when our customers use PayPal.”
If you feel your PayPal account was unfairly dealt with by PayPal, you may be eligible to receive some financial compensation for your troubles if you meet certain conditions . How much financial compensation is based on the amount that was held or reserved from you by PayPal, and for how long. Both the conditions that need to be met and compensation range are shown below.
The last day to submit a claim is May 10 with the final approval hearing taking place on July 13, according to the settlement website . From there, it’s uncertain how long until compensation is sent out, due to the nature of appeals and court cases. Considering compensation is pro-rated, any money left over in the settlement will be donated to the Electronic Frontier Foundation.
To submit a claim, go to this address and enter your personal information, including your name, address, phone number and email address. From there, you’ll be taken to a page where you can enter up to five email addresses that were associated with your PayPal account(s). After this, you will need to answer the four questions shown above, before hitting submit on the next page.
If you’re confused by the difference between a basic claim or an alternate claim, an alternate claim means you can “seek a payment based on your actual damages, which will be determined by a neutral third party selected by the Court based upon documentation submitted by you and PayPal. No payment or Alternate Claims will exceed $2,000. If an Alternate Claim is denied by the neutral third party, it will be treated as a Basic Claim,” according to the FAQ of the settlement website.
In total, PayPal has agreed to put $3.2 million in the settlement fund, along with potentially another $800,000 for certain “Claims Class Members.”
