Several users have come forward with accusations that PayPal is freezing gambling accounts and keeping the funds without offering any explanation as to why. And now, they are coming together to take legal action against the payment provider in a federal lawsuit. They’re also looking for more people who have faced similar situations and thinking of a class-action lawsuit.
One of the plaintiffs, Lena Evans, has used PayPal for over 20 years to send cash back and forth for a poker league that she owns. PayPal seized nearly $27,000 in her account without giving her a reason why. She also uses that account to sell clothing on eBay and run a non-profit to help women in need.
Then there is poker player Chris Moneymaker, who had $12,000 taken from his PayPal account. He was asking others to join him in a class action lawsuit after his account was “limited” for six months and his money disappeared. But as soon as the word ‘lawsuit’ started being tossed around the company “mysteriously returned” his cash. Go figure.
To be sure, it’s not just that PayPal is freezing gambling accounts. Another PayPal user had over $42,000 “seized” and her account closed, and when she pressed the payment processor for a reason, a representative told her it had happened because she used the same IP and computer as other users. Later, a second representative allegedly told her it was due to her selling clothing for 25% less than retail. Then, a third representative stated she had been using multiple accounts, which she said was flat untrue.
Besides the fact that PayPal is freezing gambling accounts, the company has a history of pissing people off by limiting their accounts and holding their funds hostage for six months or more. The lawsuit filed accuses them of unlawfully seizing personal property and violations of racketeering laws. A class-action suit would also seek restitution, punitive damages, and exemplary damages for all who have had their monies seized and accounts frozen.