Feeds

Line up for some PayPal settlement pie

North Americans only need apply

  • alert
  • submit to reddit

Security for virtualized datacentres

PayPal sent a long email to its US customers this week with details about how to get a piece of the $9.25m settlement fund the lawyers have created. It is possible to get a chunk of it even if you have no specific complaint related to the lawsuit.

PayPal sent the notice to anyone who opened an account in the US between October 1, 1999 and January 31, 2004. They will also publish the notice in three media outlets: USA Today and Newsweek and People magazines.

The lawsuit, filed by attorneys at Jacoby & Meyers law firm shortly after PayPal's IPO on February 14, 2002, claims that PayPal illegally restricted customers' access to the funds in their accounts and did not provide proper account statements, both in violation of the Electronic Fund Transfer Act (EFTA).

PayPal claims that EFTA rules do not apply to its business.

Throughout the notice, PayPal repeatedly denies any wrongdoing in the case, clearly stating that the creation of this settlement fund in no way should be taken as an admission of guilt. In fact, the court did not reach a verdict in the case, but simply sent it to mediation, where the parties agreed to settle out of court.

Account holders must have opened a PayPal account between October 1, 1999 and January 31, 2004. They may not reside in the following countries: Austria, Belgium, Denmark, Germany, Greece, Finland, France, Ireland, Italy, Luxembourg, Portugal, Spain, Sweden, The Netherlands, or United Kingdom. And of course, they must not be employees or former employees of PayPal.

There are two types of claims to be filed in the settlement. Dispute Resolution Claimants are those who believe that before February 1, 2004 they had access to their account improperly restricted as the result of an unauthorized or incorrect funds transfer. These claimants can file a short form to receive a flat payment of $50, or a long form, which will be evaluated by a claims administrator in order to determine payment.

Statutory Damage Fund Claimants don't have to have had a complaint related to the lawsuit. They simply need to fill out an online form with account and identification information, releasing PayPal from future liability in the lawsuit or future, similar complaints. Statutory Damage Fund Claimants will share in a $1 million chunk of the total fund, and the proceeds will be divided among all who file claims.

More information about the settlement, including online claim forms, can be found here. ®

Related stories

PayPal forced to apologise for dodgy small print
eBay and PayPal go after auction fraudsters
PayPal virus writing scammer scumbag pleads guilty
Anyone ever managed to claim on PayPal's Money Back Guarantee?
Credit card firms profit from Net fraud
Judge rules PayPal unfair

Choosing a cloud hosting partner with confidence

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.