$9.25 Million Proposed Settlement Ready in Paypal Litigation

We received an email from Paypal providing notice that all people who opened a Paypal account between 10/99 and 1/04 and whose account was restricted in certain ways and lost money belong to a settlement class and can now file a claim. Paypal, an online payment service now owned by eBay, was accused of violating the Electronic Fund Transfer Act. The settlement provides for nearly $3.5 million in legal fees and costs and $4.3 million for the settlement class. It's not clear to us where the other $1.5 million goes. The email provided this link http://www.paypal.com/settlement/ which redirects to http://www.settlement4onlinepayments.com/, a third party site set up by the claim administrator.

You may file a claim if PayPal caused you to lose money because of any of the following:

• You experienced an unauthorized or incorrect electronic transfer to or from your PayPal account;
  
• Your PayPal account was improperly restricted or access was improperly limited;
  
• You requested information from PayPal about an account restriction or limitation or unauthorized transfer and you did not receive a satisfactory response; and/or
  
• You experienced or reported an unsatisfactory result from a dispute with PayPal involving a chargeback, a refund, a buyer complaint, or PayPal’s Seller Protection Policy, Buyer Complaint Process and/or Buyer Protection Policy.

So if you opened a Paypal account and had it restricted in certain ways and lost money, check it out. You may be entitled to $50 or so. Once again, it appears that the class action lawyers are the clear winners.