Another California Class Action Suit against PayPal

Judging by the number of class action suits filed against PayPal, as well as by the information we receive from attorneys who prepare for filing class action suits, the company is in deep legal trouble.

As reported by By Troy Wolverton , Staff Writer, CNET on February 21, 2002, a class action suit has been "filed Wednesday in California Superior Court in Santa Clara County [.The] suit charges PayPal with illegitimately restricting customers' access to their money. The suit asks for an unspecified amount of damages. PayPal frequently locks customers' accounts if it suspects that fraud played a part in a transaction, even if the amount in doubt is a fraction of the total amount in an account, said Gail Koff, an attorney and founding partner of Jacoby & Meyers, which filed the lawsuit. The result is that customers can't accept any more payments via PayPal, pay anyone through the service, or withdraw any of their money until PayPal clears the transaction. That can often take days or even weeks, customers charge. ?Under the guise of needing to protect consumers from fraud, they themselves are guilty of fraudulent abuse of their customers,' Koff said."

The website of Jacoby & Meyers is:

Their standard email address:

As stated on their website, one can call them toll-free:

"If you would like to contact us by telephone, please feel free to call our toll-free phone number at (800) 97-LEGAL or (800) 975-3425. "

They also offer an appraisal of your chances over the Internet. I guess that such initial information will not be billed. From their site:

"Are you wondering whether you should contact Jacoby & Meyers about your personal injury matter? Why not let Jacoby & Meyers appraise your claim over the Internet! Another innovation at Jacoby & Meyers is our Instant Interview, which can quickly appraise your claim and determine whether you should get in touch with a Jacoby & Meyers attorney."