QUESTION
I would like to know if I can sue Paypal for limiting my account unjustly. And if so, how much will the fees be?
Asked on May 24th, 2012 on Business Law - New York
More details to this question:
HI,
I have been selling on eBay with my linked paypal account for a few years now with no problems, until now.
Just today I find out that paypal limited my account, supposedly they claimed that my account is linked to another Paypal account that has issues. I''ve always had, 1 Paypal account and 1 eBay account, I never opened any other accounts ever!
In addition, they put a hold on $6000 of my money, funds I need for for my business, now without any funds, I wont be able to ship the customers items, or buy new merchandise. In addition, I will suffer great financial loss, my business will go down because my customers will file claims, disputes and give me negative feedback because I wont be able to ship their items, all due to the hold that Paypal has on my account. Needless to say, my reputation and business will be ruined!
1 ANSWER
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Anyone can sue anyone for anything. Before even considering suing, you should very carefully review your user agreement with PayPal and determine whether PayPal acted permissibly within the terms of that agreement. Since your relationship is purely a contractual one, those terms will determine the outcome of any issues of liability. You should also review the contract to determine whether PayPal's liability is limited. If, after reviewing these matters, you conclude -- as I think you will -- that litigation is futile, perhaps you will consider an alternative means of resolving the issue and possibly transferring your business to another funds-transfer system.
Answered on May 24th, 2012 at 8:52 AM