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A law suit has been filed in Superior Court in Santa Clara County, California against PayPal, an online payment company. PayPal is widely used by buyers and sellers on eBay as an alternative to credit cards.
The suit alleges improper restriction and administration of customer accounts, including holding on to consumers' money for no apparent reason.
The suit further alleges that the Company deliberately conceals its customer service contact information from the users.
Regarding mismanagement of its customer accounts, the 20-page complaint reads: "As a result of its inability to set up an adequate and effective anti-fraud mechanism and its attempt to compensate for such inability, PayPal adopts an aggressive and grossly over-broad anti-fraud policy that persistently causes erroneous and wrongful restrictions of access to be imposed on user accounts â" causing economic damage and financial loss to a significant number of innocent PayPal account holders,"
PayPal (NASD: PYPL) had its IPO on Feb-15-02, soaring 54% from its opening price of $13 a share.
Published on Jan-1-03
Please visit our homepage to view current cases.
A law suit has been filed in Superior Court in Santa Clara County, California against PayPal, an online payment company. PayPal is widely used by buyers and sellers on eBay as an alternative to credit cards.
The suit alleges improper restriction and administration of customer accounts, including holding on to consumers' money for no apparent reason.
The suit further alleges that the Company deliberately conceals its customer service contact information from the users.
Regarding mismanagement of its customer accounts, the 20-page complaint reads: "As a result of its inability to set up an adequate and effective anti-fraud mechanism and its attempt to compensate for such inability, PayPal adopts an aggressive and grossly over-broad anti-fraud policy that persistently causes erroneous and wrongful restrictions of access to be imposed on user accounts â" causing economic damage and financial loss to a significant number of innocent PayPal account holders,"
PayPal (NASD: PYPL) had its IPO on Feb-15-02, soaring 54% from its opening price of $13 a share.
Published on Jan-1-03