PayPal to Pay Off Client Accounts Frozen, Suspended

Feb 2, 2016 11:17 AM PST

OAKLAND, Calif. — If you or your company had an active PayPal account frozen or terminated between April 19, 2006, and Nov. 5, 2015, you may eligible for a settlement payment of up to $440 per account.

In the five-year-old class action case of Zepeda v. PayPal, both parties have agreed to a settlement with regards to allegedly improper account holds PayPal placed on some of its customers.

PayPal recently released a notice of settlement, directing users to AccountHoldSettlement.com to file a claim and learn more about the case itself. A May 10 deadline has been set for all settlement filings.

Class-action plaintiffs alleged in the suit that PayPal and its partner at the time, eBay, had placed inappropriate holds or reserves on sellers' funds.

The organizations were also accused of failing to provide annual error-resolution notices and monthly account statements, as per terms of the Electronic Fund Transfer Act.

PayPal has denied all allegations but has agreed to the terms of the settlement to "avoid the costs and uncertainty of a trial."

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