Feeds

Judge rules PayPal unfair

One for consumer power

  • alert
  • submit to reddit

The Power of One Infographic

Disgruntled customers of PayPal have won an important battle after a US judge ruled its arbitration policy rigid and unfair.

The decision means that punters who use the online payment service and who maintain they've been treated horrendously (check out NoPayPal.com and PayPalWarning.com to hear some real horror stories) could take their cases to court, instead of PayPal's private arbitration system.

The ruling was issued on August 30 by US District Judge Jeremy Fogel of San Jose, who decided that people should not have to use PayPal's private arbitration system to settle disputes. Instead of customers having to travel to Santa Clara County for arbitration, they should be able to get them settled in court, he said.

According to the San Francisco Chronicle there are approx. 100,000 complaints outstanding at PayPal. In many instances disputes can run on for months leaving people frustrated and out of pocket as they are unable to access their accounts.

To make matters worse, those involved claim they been fobbed off by PayPal as they try and reach a settlement.

The judge also refused to dismiss a class action suit on this very issue, in which punters claim that PayPal illegally froze their accounts.

No one from PayPal was available for comment at the time of writing.

In July eBay announced its intention to buy PayPal for $1.5bn in stock although the merger still needs to clear a number of hurdles before it can go-ahead.

The online auction house says it will ditch online gaming transactions from PayPal's range of services once the deal is completed. ®

Mobile application security vulnerability report

More from The Register

next story
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.