The first customer service representative said she had violated the acceptable use policy “by using the same IP address and computer that other PayPal users used.” A second told her that she violated the AUP by holding multiple PayPal accounts, which Shemtov denies. Advertisementįurther Reading PayPal freezes $45,000 of Mailpile’s crowdfunded dollars (Updated)Another PayPal user, Roni Shemtov, says that she was given three different explanations for why the company took a total of $42,351.87 from her account.
After numerous calls and letters to PayPal, he was finally told that the seizure was “for its liquidated damages arising from those violations pursuant to the User Agreement.” He claims he never received a copy of that policy until his account was restricted. He said that PayPal took $172,206.43 from his wife’s account, which he used for his store, with no explanation.
One plaintiff, Shbadan Akylbekov, ran a storefront selling hyaluron pens, which are filled with hyaluronic acid, a dermal filler that is used to reduce wrinkles. The three lead plaintiffs claim they had nearly $250,000 seized by PayPal. “PayPal’s user agreement and acceptable use policy cannot be used as a ‘license to steal,’” the complaint says. It also says that PayPal takes the money for itself after a 180-day hold period. When PayPal does let users know it placed a hold on their funds, “it does not inform such users why such funds are being held, how they can obtain a release of the hold, and/or how they can avoid future holds being placed on their accounts.” Further Reading How can I stop Paypal from freezing my crowdfunding campaign?“PayPal violates its own Agreement by failing to provide adequate notice to users whose accounts have had holds placed on them,” the lawsuit says.
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