Marc Perkel Rantz

A Victoy against PayPal

I found a trick that worked for me to get my account closed and get my money back. I filed a complaint with TrustE and they acted - and it worked!

As you know - PayPal doesn't close accounts. They "Limit" the account forever. They steal your money for at least 180 days and often forever based on stories we have all heard. And by keeping the account open they still have access to your bank account, credit cards, and you are subject to their changing user agreement. I deciced to put and end to it.

Here's the link:

http://truste.org

Here is my complaint:

I have asked paypal to close my account and they have refused to do so. I want to close my account and terminate my user agreement with them. I have called them and I recorded the phone call of them refusing to close the account and terminate the user agreement.

Here is a link to the recording:

http://marc.perkel.com/archives/000394.html

I am not done with PayPal yet. It's not over until they change in a permant way. But for those of you with frozen and limited accounts - I suggest you do what I did - it worked for me. Victories come one step at a time. This is a step forward.

PayPal to start fining their customers

If you buy a Playboy with your paypal debit card - PayPal might steal $500 from you.

PayPal to Levy Fines for Gambling, Porn

By Lisa Baertlein

SAN FRANCISCO (Reuters) - PayPal, the online payments arm of eBay Inc. on Friday said it will soon fine people up to $500 for uses related to gambling, adult content or services, and buying or selling prescription drugs from noncertified sellers.

The new policy, which takes effect Sept. 24 and applies to both buyers and sellers, marks the first time PayPal has imposed fines for violations of its use policy, spokeswoman Amanda Pires said.

In addition to fines that could be applied to each violation, PayPal may take legal action to recover losses in excess of the fines, Pires said in an interview.

PayPal refuses to close my PayPal Account

In my continuing battle with PayPal I have sent them several emails demanding that they close my account and terminate the user agreement I have with them. They refuse to do so.

They have placed my account in a "Limited Status" which does not close the account. It gives them the ability to share my information according to their user agreement and to take money out of my account should they choose to do so.

Since they admit that they don't want to do business with me then they should close the account - but they worn't do that. They want to keep me under their user agreement and they want to maintain access to my checking account even after it's clear they won't do business with me.

After several emails from them I called them on the phone at their service center in Nebraska and talked to Dave and I recorded the phone call (1mb 9 minutes) so that everyone out there who has access to the Internet can listen to PayPal and experience what doing business is like in their own words.

After the phone call at the above link I got a call back from another person named Michele at PayPal - and - I recorded that phone call as well (3mb 25 minutes). This person is some higher up. In this phone call she admits that PayPal can still access my checking account. She admits that PayPal will retain access to my checking account forever - and she admits that PayPal still have access to all checking accounts that they have ever opened whether they were closed, linited, or locked.

This alll started on June 13th 2004 when Paypal limited my account and told me they were seizing my money for 180 days and that there was no appeal and that there was nothing I could do about it. However - they underestimated me and I had my money out in less that 2 weeks. Since then I've decided it's my mission to expose what scumbags PayPal is and to warn consumers about using them. I also intend to bring whatever heat I can on them to stop their unethical business practices.

For those of you who have questions about if it's legal to record this phone call, I will point out several things that make it legal.

First - They are in Nebraska - I am in California - so federal jurisdiction applies. That makes it one party consent.

Second - on the first phone call - the automated voice states clearly "This phone call may be recorded".

Third - I was talking to PayPal - not to individual persons at paypal. All the conversation is in the context of business.

Fourth - on the second conversation - they were recording me without giving me any type of verbal warning or otherwise that the call was being recorded. When I asked THEM if they were recording the call - they admitted that it might be. So on the basis that they record calls that they initiate without warning people they call that the call may be recorded they are consenting through their conduct and waiving any rights to notification themselves.

Fifth - They already know I record phone calls with them because I have already done it in the past and they have notes about this sort of thing in their computers on me.

Sixth - even if it were illegal - it's wrong for them to commit fraud - it's right for me to expose it - and if it turned out I were legally wrong I would appeal to a jury to override the law and find me innocent anyhow. They call it jury nullification - I call it jury empowerment. Besides - such a charge would give this issue the attention it needs to stop paypal from ripping people off.

Screwed by PayPal in small claims court

I got the decision in small claims court in the mail and I got screwed. The judge - who really wasn't a judge but a fill in lawyer - complained that the case was too complex for small claims court and recommended I hire a lawyer.

The decision: Defendant (PayPal) acted within the scope of contrace and no legislation was presented to override.

This was a dispute arising from PayPal not liking what I posted on my web site and deciding to cut me off and seize my money for 180 days. I did get my money back after recording a conversation I had with them and posting it on the internet.

Details are at this link.

The battle isn't over yet however. The problem is that PayPal is acting like a financial institution without the responsibilities of a bank. They are playing a game of legal fiction playinf fast and loose with people's money. I want to see what I can do to bring PayPal under the same rules as other financial institutions so they can't just decide to arbetrarilly decide to grab someon'e money just for any reason they want.

Perkel vs PayPal

I went to the hearing yesterday. No decision was made at that time. The judge took it under submission. I have no idea if I will win or not. I do think the judge believed everything I said - but he complained it was a complex case for small claims court.

But - this is win/win for me because it will actually be harder on paypal if they lose. PayPal asserted policies in court that they can terminate anyone for any reason whatsoever. And that's going to bite them someday. Winning this case will cost PayPal more money than if they lose it.

Off to court with PayPal today

Well - today is the day I go to cmall claims court against PayPal. It's at 1:00 in Santa Clara County. It should be interesting. My first experience in California small claims court.

This incident is about PayPal cutting me off and siezing my money because they didn't like the content of my web site. Since then I have got my money back - but I'm suing them for additional damages.

If you have been following this - I made a Recording of the conversation I had on the phone with PayPal. If you don't want to listed to the whole 25 minutes - here a 2 minute exerpt of the conversation.

The exerpt is very good. It explains in PayPal's own words why the user agreement with them says and how they actually enforce it. Something that every PayPal user should know. I don't see where PayPal sould have a problem with this because isn't it better for everyone if people really understands what the agreement means? I sure think so!

PayPal Class Action and Proposed Settlement

PayPal sent me this about their class action lawsuit.

IF YOU OPENED A PAYPAL ACCOUNT BETWEEN OCTOBER 1999 AND JANUARY 2004, YOU MAY BE ENTITLED TO A PAYMENT FROM A CLASS ACTION SETTLEMENT.

PLEASE READ THIS NOTICE CAREFULLY.

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN JOSE DIVISION

In re PayPal litigation
Case No. CV-02-01227-JF (PVT)

NOTICE OF PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT

1. WHY DID I GET THIS NOTICE?
You have been sent this Notice because the records of PayPal, Inc. indicate you are a current or former PayPal account holder. This means you may be eligible to receive a payment from the proposed class action settlement in the lawsuit In re PayPal Litigation, Case No. 02 1227 JF PVT, pending in the United States District Court for the Northern District of California in San Jose. This Notice provides a summary of the terms of the proposed settlement. It also explains the lawsuit, your legal rights under the settlement, what benefits are available to you under the settlement, and how to get them.

2. WHAT IS A CLASS ACTION?
In a class action, one or more people, called Class Representatives (in this case Roberta Toher and Jeffrey Resnick), sue on behalf of people who have similar claims. All of these people are members of the Class. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. United States District Judge Jeremy Fogel is in charge of this class action.

3. WHAT IS THIS LAWSUIT ABOUT?
In early 2002, Plaintiffs Roberta Toher and Jeffrey Resnick filed separate lawsuits against PayPal, Inc. These two cases were later consolidated into one lawsuit in the United States District Court for the Northern District of California, San Jose Division, entitled In re PayPal Litigation, Case No. CV 02 01227-JF (PVT). The lawsuit alleges that PayPal violated the federal Electronic Fund Transfer Act ("EFTA"), 15 U.S.C. §§ 1693 et seq., including provisions requiring PayPal to supply customers with information about dispute resolution procedures and to follow certain procedures when investigating complaints of unauthorized or incorrect electronic fund transfers. For example, the lawsuit claims that PayPal did not provide account statements in the manner required by the EFTA. The lawsuit further alleges that PayPal has placed inappropriate restrictions or other limits on customers' accounts and engaged in other improper practices. Based on these practices, the lawsuit asserts claims under California state law for conversion, money had and received, negligence, and violations of consumer protection statutes.

PayPal does not believe that it did anything wrong. In fact, PayPal disputes that the EFTA, originally passed in 1978, applies to its business. PayPal denies any and all liability for the claims alleged in the lawsuit. The Court did not decide in favor of the Plaintiffs or PayPal. Instead, beginning in the fall of 2003, the parties began a series of settlement negotiation sessions mediated by United States Magistrate Judge Edward Infante. Eventually, in November 2003, both sides agreed to a settlement in principle. By settling their claims, both parties avoided the uncertainty and cost of a trial. The settlement provides money and other benefits to the Class. On June 11, 2004, the parties entered into a formal, written Settlement Agreement, which is on file with the Court and available on the Internet at https://www.paypal.com/settlement/. By entering into the Settlement Agreement, PayPal is not admitting any wrongdoing. PayPal continues to believe that it did not do anything wrong. The Representative Plaintiffs and the attorneys appointed by the Court to represent the Class believe that the settlement is fair to Class Members. By this notice, the Court is not expressing any view on the merits of the lawsuit.

4. HOW DO I KNOW IF I AM PART OF THE SETTLEMENT?
On July 12, 2004, Judge Fogel entered an order granting preliminary approval of the settlement and certifying the following class for purposes of the settlement: All Persons who opened a PayPal account during the period from October 1, 1999 through January 31, 2004. Excluded from the class are any judicial officer to whom the lawsuit is assigned; PayPal and any of its affiliates; any current or former employee, officer, or director of PayPal; anyone who resides in Austria, Belgium, Denmark, Germany, Greece, Finland, France, Ireland, Italy, Luxembourg, Portugal, Spain, Sweden, The Netherlands, or United Kingdom; and all persons who timely and validly request exclusion from the class pursuant to this notice.

Thus, if you opened a PayPal account between October 1, 1999 and January 31, 2004, and are not one of the excluded persons listed above, you are a member of the class.

5. WHO REPRESENTS ME IN THIS CASE?
To represent the class, the Court has appointed Plaintiffs Roberta Toher and Jeffrey Resnick as Representative Plaintiffs and their counsel of record as Class Counsel. The Court has also appointed the following attorneys and law firms as Co-Lead Counsel:

A. J. De Bartolomeo
Girard Gibbs & De Bartolomeo LLP
601 California Street, Suite 1400
San Francisco, California 94108

Robert C. Finkel
Wolf Popper LLP
845 Third Avenue
New York, New York 10022

6. WHAT DOES THE SETTLEMENT PROVIDE?

A. Injunctive Relief
The settlement requires that PayPal consent to the entry of an order, called an injunction, that mandates various changes to PayPal's business practices. PayPal has already implemented these changes. The injunction includes PayPal's agreement to comply with certain notice and error resolution procedures of the EFTA, and to follow certain procedures for limiting accounts and responding to and returning funds to customers whose accounts have been limited. A copy of this injunction can be found as Exhibit D to the Settlement Agreement, entitled "Form of Injunctive Order."

B. Monetary Relief
Under the settlement, PayPal will pay $9.25 million into a settlement fund, to be held in an interest-bearing account. The fund will be used (1) to make payments to class members who submit valid claims before the claims deadline; (2) to pay certain costs of giving notice to the Class and of settlement administration, as approved by the Court; and (3) to pay attorneys' fees and expenses to Class Counsel in the amount awarded by the Court. Class Counsel have proposed that, after deduction of notice and administrative costs and Class Counsel's attorneys' fees and expenses, the balance of the fund ("Net Settlement Fund") be applied in accordance with a written plan of allocation. (The following explanation is qualified in its entirety by reference to the Plan of Allocation attached to the Settlement Agreement as Exhibit C, a copy of which is on file with the Court and available on the Internet at https://www.paypal.com/settlement/.)

1. Certain Definitions
Certain capitalized words are used in this part of the Notice to describe the way in which the Net Settlement Fund will be allocated. These capitalized words have the following meanings:

(a) "Released Persons" means PayPal and its past and present partners, affiliates, predecessors, successors, assigns, parents, subsidiaries, officers, directors, attorneys, and employees.

(b) "Fund Claimants" are class members who submit timely, valid claims in accordance with the procedures described in this notice.

(c) "Dispute Resolution Claimants" are Fund Claimants who contend that, prior to February 1, 2004, they:

(i) experienced or reported to PayPal an unauthorized or incorrect electronic transfer to or from their PayPal account including, without limitation, electronic transfers initiated by (a) the Fund Claimant; (b) PayPal in connection with, among other things, chargebacks, refunds, buyer complaints, PayPal's Seller Protection Policy, Buyer Complaint Process and/or Buyer Protection Policy; or (c) any third party;

(ii) had access to their PayPal account improperly, incorrectly or erroneously limited or restricted, in whole or in part;

(iii) made a request for information in connection with PayPal's restriction or limitation of the Fund Claimant's PayPal account or regarding an incorrect or unauthorized electronic transfer to which PayPal did not respond at all or did not respond to the Fund Claimant's satisfaction.

(d) "Statutory Damage Fund Claimants" are all Fund Claimants who are not Dispute Resolution Claimants.

2. Statutory Damage Fund Claimants
The plan of allocation designates $1 million of the Net Settlement Fund to a "Statutory Damage Fund," to be distributed equally among all Fund Claimants who are not Dispute Resolution Claimants. This means that if you are a member of the Class and do not fall within the definition of a "Dispute Resolution Claimant," as set out above, you can make a claim for a payment from the Statutory Damage Fund. The Statutory Damage Fund provides compensation for potential statutory damages under the Electronic Fund Transfer Act ("EFTA"), 15 U.S.C. §§ 1693 et seq. Statutory damages under the EFTA are limited by law to no more than $500,000 for any class of individuals claiming "the same failure to comply." Plaintiffs' counsel contended in the litigation and for purposes of settlement that PayPal was potentially liable for multiple failures to comply, a position PayPal vigorously opposed.

The Statutory Damage Fund Claim Form requires you to provide certain identifying information and sign a statement under penalty of perjury authenticating your claim, which may be subject to verification by PayPal's records. To make a claim for payment from this fund, please complete and submit the Statutory Damage Fund Claim Form available on the Internet at https://www.paypal.com/settlement/ in accordance with the instructions on the form.

3. Dispute Resolution Claimants
The balance of the Net Settlement Fund will be allocated for distribution to Dispute Resolution Claimants. If you fall within the definition of a "Dispute Resolution Claimant," as set out above, you have the right to make a Dispute Resolution Claim. You can choose to submit either the Short Claim Form or the Long Claim Form available on the Internet at https://www.paypal.com/settlement/. If the Court awards attorneys' fees and costs in the amount requested, Class Counsel estimate that there will be approximately $4.3 million to pay the claims of Dispute Resolution Claimants. Half of the money allocated to Dispute Resolution Claimants will be allocated to pay Short Form Claimants (the "Short Form Fund"). The other half will be allocated to pay Long Form Claimants (the "Long Form Fund").

a. Short Form Claimants
The Short Claim Form requires you to provide certain identifying information and sign a statement under penalty of perjury, which may be verified using PayPal's records, that you experienced an unauthorized or incorrect electronic transfer or an account limitation or denial of access to your account. If you make a timely, valid claim using the Short Claim Form, you will receive a payment of $50, unless the amount needed to pay all of the Short Form claims exceeds the Short Form Fund. In that case, the Short Form Fund will be divided equally among all Short Form Claimants. If the amount needed to pay all of the Short Form claims is less than the amount of the Short Form Fund, the money left over will be added to the Long Form Fund.

b. Long Form Claimants
The Long Claim Form requires you to provide certain identifying information; give the details of the account restriction(s) and/or unauthorized electronic fund transfer(s) you experienced; state the amount of your claim, and sign a statement, under penalty of perjury, which may be subject to verification by PayPal's records, that you actually suffered the claimed damages. You should also provide any documentation you have that will support your claim, as explained in more detail on the Long Form.

If you make a timely, valid claim using the Long Claim Form, an independent, court-approved claims administrator will evaluate your claim and determine the amount you should receive. In making this determination, the claims administrator will take into account the amount of damages you claim; the nature of your complaint; the quality of the supporting documentation you provide; your recoverable damages; the probability that you would be successful on your complaint; and such other factors that the claims administrator considers relevant. If the amount needed to pay all of the Long Form claims is less than the amount of the Long Form Fund, the money left over will be added to the Short Form Fund.

c. Balance after payment of Long Form and Short Form Claimants
If there are sufficient funds to pay all Short Form and Long Form Claimants in full in accordance with the written plan of allocation, any remaining funds will be divided equally among all Dispute Resolution Claimants to supplement their recoveries.

7. HOW DO I MAKE A CLAIM AND GET A PAYMENT?
To make a claim for payment, please complete one of the claim forms (Statutory Damage Claim Form, Short Claim Form, or Long Claim Form) available on the Internet at https://www.paypal.com/settlement/. To make a valid claim, you will need to (1) fill out the claim form electronically and (2) print the signature page of your claim form, sign it and return it by mail to the address provided on the claim form. You must complete the claims procedure no later than October 23, 2004. Your payment will be transferred electronically to your PayPal account. If you do not have a current, unrestricted PayPal account or you indicate on the claim form that you prefer to receive a check, payment will be made in the form of a check, sent by first class mail to the address provided on the claim form. If you are paid by check, a $1.00 charge will be deducted from your payment to cover the cost of issuing and mailing the check. The claims administrator will not issue checks for less than $1.00. Such amounts will instead be reallocated to those claimants who are entitled to receive distributions.

8. WHAT AM I GIVING UP IF I PARTICIPATE IN THE SETTLEMENT?
If you do not exclude yourself from the class and the settlement is granted final approval, the judgment entered upon approval of the settlement will dismiss the lawsuit with prejudice, and will release any and all claims, demands, rights, liabilities, and causes of action of every nature and description whatsoever, known or unknown, matured or unmatured, at law or in equity, existing under federal or state law, that were or could have been asserted in the Litigation against the Released Persons, including without limitation, claims under the Electronic Fund Transfer Act, California Business and Professions Code §§ 17200 et seq.; the California Consumers Legal Remedies Act, Cal. Civ. Code §§ 1750 et seq.; and for PayPal's alleged conversion, breach of the User Agreement or other contract, money had and received, unjust enrichment, and negligence under California law or any other state or federal law arising out of, among other things, PayPal's restriction or limitation of accounts; PayPal's dispute resolution policies, practices and procedures; PayPal's debit of accounts following the receipt of chargebacks, buyer complaints, reports of unauthorized access or in connection with its Seller Protection Policy, Buyer Complaint Process or Buyer Protection Policy; PayPal's alleged conversion of funds; and PayPal's compliance with the Electronic Fund Transfer Act, 15 U.S.C. §§ 1693 et seq., or any similar legislation arising under the laws of any state. You will be permanently barred from bringing any such claims that arose prior to February 1, 2004. With regard to accounts that were limited prior to February 1, 2004, however, you will not be releasing claims to recover any balance that remained in the account 180 days after the account was initially limited.

In summary, if you do not exclude yourself, you will not be able to sue, continue to sue, or be part of another lawsuit against PayPal relating to the legal issues in this case. You will be bound by all proceedings, orders, and judgments entered in connection with the settlement, whether favorable or unfavorable, and will be represented by the Representative Plaintiffs and Class Counsel for purposes of the settlement. If you do not exclude yourself from the class, and the settlement is granted final approval, your claims against PayPal and its affiliates will be released as described above. If you are a class member, you may, if you wish, appear in this lawsuit through your own attorney at your own expense. You need not do so to participate in the settlement, however.

9. WHAT IF I WANT TO EXCLUDE MYSELF (OPT-OUT) FROM THE SETTLEMENT?
If you do not want to remain a member of the class and participate in the settlement, then you must mail or deliver (email is not considered adequate), such that it is RECEIVED on or before September 7, 2004, (1) an original written, signed request for exclusion to Co-Lead Counsel at the following address:

Co Lead Counsel:
PayPal Class Action Settlement
A. J. De Bartolomeo
Girard Gibbs & De Bartolomeo LLP
601 California Street, Suite 1400
San Francisco, California 94108

and (2) a copy of the written signed request to PayPal's counsel at the following address:

PayPal's counsel:
PayPal Class Action Settlement
Morgan Lewis & Bockius LLP
One Market
Spear Street Tower
San Francisco, California 94105

This request for exclusion must contain your name and address; be signed by you; and include the reference "In re PayPal Litigation, Case No. CV-02-1227-JF (PVT)."

If you exclude yourself from the class, you will not participate in the settlement and cannot receive any payment from the settlement. Your claims will not be released.

10. HOW WILL THE LAWYERS FOR THE CLASS BE PAID?
>From the inception of the litigation in early 2002 to the present, Class Counsel have not received any payment for their services in prosecuting the case, nor have they been reimbursed for any out-of-pocket expenses. If the Court approves the proposed settlement, Class Counsel will make a motion to the Court for an award of attorneys' fees of up to $3,332,500 and reimbursement of expenses of up to $135,000, to be paid from the $9.25 million settlement fund. Class Counsel will also seek reimbursement from the settlement fund on behalf of certain of the named plaintiffs in the litigation for reimbursement of their expenses related to their service as class representatives in the litigation, in an aggregate amount not to exceed $15,000. The motion will be heard at the settlement hearing described below in Section 11.

Class Counsel's motion for an award of attorneys' fees and reimbursement of expenses is based on various factors that include the benefits obtained for the class through litigation. These benefits include the $9.25 million cash settlement and PayPal's agreement to the injunctive relief requirements. In addition, certain changes to PayPal's business practices are attributable in part to this litigation, including PayPal's decision to undertake to return to its customers approximately $5.1 million in those accounts to which access was limited for 180 days or more; modifications to PayPal's arbitration provision in its User Agreement and its replacement with a clause that limits PayPal's ability to compel arbitration where the total amount of the award sought is $10,000 or greater; and various other changes in PayPal's business practices during the pendency of the litigation.

Class Counsel submitted their proposed request for attorneys' fees to the Magistrate Judge who had previously presided over discovery and settlement discussions. Class Counsel's request for attorneys' fees is equal to the amount recommended by the Magistrate Judge.

11. WHEN AND HOW WILL THE COURT DECIDE WHETHER TO APPROVE THE SETTLEMENT?
The Court will hold a hearing on September 24, 2004, at 9:00 a.m., before the Honorable Jeremy Fogel, United States District Judge, United States District Court for the Northern District of California, Courtroom 3, 5th Floor, 280 South First Street, San Jose, California 95113. The purpose of the hearing will be to determine (a) whether the proposed settlement should be approved as fair, reasonable, and adequate; (b) whether the application by Class Counsel for an award of attorneys' fees and expenses should be granted; and (c) whether the lawsuit and class members' claims should be dismissed with prejudice pursuant to the settlement. The Court reserves the right to adjourn or continue the hearing without further notice to the class.

You may attend the hearing if you wish, but are not required to do so to participate in the settlement.

If the settlement is not approved by the Court, the lawsuit will proceed. If there are further actions taken in the case that affect your rights, you will receive notice as determined by the Court.

12. CAN I COMMENT ON THE SETTLEMENT?
If you decide to remain in the class, and you wish to comment in support of or in opposition to the settlement or Class Counsel's motion for attorneys' fees and expenses, you may do so by mailing or delivering your written (non-email) comments, such that they are RECEIVED on or before September 3, 2004, as follows: (1) the original must be sent to the Court at the following address:

Clerk of the Court
United States District Court for the Northern District of California
280 South First Street
San Jose, California 95113

and (2) copies must be sent to Co Lead Counsel and PayPal's counsel at the addresses listed in Section 9, above.

Your written comments must contain your name and address; be signed by you; and include the reference In re PayPal Litigation, Case No. CV-02-1227-JF (PVT). If you wish to appear and present your comments orally at the hearing, your written comments must contain a notice that you intend to appear and be heard, a statement of the position you intend to present at the hearing, and any supporting arguments.

If you do not comply with the foregoing procedures and deadlines for submitting written comments or appearing at the hearing, you will not be entitled to be heard at the hearing; contest or appeal from approval of the settlement or any award of attorneys' fees or expenses; or contest or appeal from any other orders or judgments of the Court entered in connection with the settlement.

13. HOW CAN I GET MORE INFORMATION ABOUT THE SETTLEMENT?
You can get more information by writing Plaintiffs' Co-Lead Counsel electronically or by first class mail at:

paypalsettlement@settlement4onlinepayments.com

Girard Gibbs & De Bartolomeo LLP
601 California Street, Suite 1400
San Francisco, California 94108

Wolf Popper LLP
845 Third Avenue
New York, NY 10022

This notice is a summary and does not describe all details of the settlement. For full details of the matters discussed in this notice, you may wish to review the Settlement Agreement dated June 11, 2004 and on file with the Court or visit https://www.paypal.com/settlement/. Complete copies of the Settlement Agreement and all other pleadings and papers filed in the lawsuit are also available for inspection and copying during regular business hours, at the Office of the Clerk of the Court, United States District Court for the Northern District of California, 280 South First Street, San Jose, California 95113.

PLEASE DO NOT TELEPHONE THE COURT REGARDING THIS NOTICE.

DATED: July 12, 2004

BY ORDER OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA

Suing PayPal

Update on the PayPal situation. On June 13th PayPal closed my account because they didn't like the material on my web sites. Yesterday I filed a small claims court case against them for $5000 - the mex you can sue for in California. Here's the details of my encounter with them and there's a recording of my phone conversation about their policies.

My suit is based on the fact that I have 50000 web pages that I need to change - and that I was actually in compliance with their policies, and that 10 cents a web page is reasonable consequential demages that should be awarded to me.

Like I said in my phone recording - I did get my money back that they froze for 180 days. I put the pressure on and they caved in. Got my refund check a few days ago.

What PayPal did was very slimy and I'm not done punishing them. I want to file another lawsuit for injunctive relief forcing them to reinstate my account and to force them to alter their User Agreement to something that's legal. I live in the next county over from San Jose and I'm looking for a free lawyer to represent me and put PayPal in it's place.

PayPal Sucks - Closed my Account - Keeping my Money

I'm in the process of building my PayPal sucks site and this blog entry is the first step. It's the art of being an asshole. I'm sure I'm not the only one that PayPal has ripped off and probably won't be the last - but I will be the one they remember the most.

I got an email today from PayPal that they are closing my account. The reason for closing my account is that they claim they don't like the content of my web site - specifically my site on Sexual Issues where I have my Men's Guide to Escort Services - a guide to interacting with hookers, The Nerd's Guide to Sex - a guide teaching men how to properly have sex with women, and The Shy Girl's Guide to Becoming a Whore - a women's guide to surviving the Bush Ecomony.

So - because they didn't like my web site content they not only decided to cancel my PayPal account - but to also keep my money for 180 days. And - I had transfered my money out of PayPal yesterday - but after closing my account today they reversed yesterday's transaction and are going to steal my money.

The people at PayPay are real mother fuckers. But I to am an asshole and I don't get mad - I get even. Whenever I get screwed by someone I use my talents of being a real prick to turn the tables on them and make them feel the heat.

PayPal claims that according to their End User Agreement that they have the right to close down my account for any reason whatsoever - without any form of recourse - keep my money for 180 days - and there's nothing that I can do about it. Well Paypal you on wrong about that because there's a lot to do about it.

I am a person who values free speech and fights hard against censorship and the Corparations like eBay who owns PayPay who think they can come in and tell ME what I can say on the Internet. Well I say - fuck you PayPal! I will not only keep my right to FREE SPEECH but I will use that right to expose you for what you really are.

Now - for those of you who are reading this - you probably don't entirely grasp the details of what I'm talking about. You think - this is PayPal - they have to be more ethical than that don't they? I say - yes they do. So I called them on the phone about it to get them to explain it to me in their own words. And I RECORDED THE CONVERSTATION IN THIS MP3 FILE SO YOU ALL CAN HERE IT FOR YOURSELF!

First things first. The file you are listening to is edited. But the important content is unaltered. I removed about 20 minutes of on hold messages so that you wouldn't have to sit through the wait time. The rest of it is everything that was said between me and PayPal.

What really fun about this is that I got them to say just exactly what they did to me and how they ripped me off and how they aren't going to do anything to fix it. What you hear is a real life detailed experience that I had and what PayPal's end user agreement really means to you - so that if you are thinking about doing business with PayPal - or you are already a PayPal or eBay customer - you might want to reread that user agreement and see if this is really what you want to be agreeing to.

In the recorded conversation - after getting them to plainly explain how they are screwing me - I anounce to them that I have recorded this phone call - and that I'm going to put it on the Internet. All of a sudden it is them flipping out and screaming about their rights - but - there's nothing they can do about it. You see - I'm not the only one who has no choice. When I dialed up PayPal - the very first thing their machine said was, "This call may be recorded." So - I recorded it. Listen to the squeal about their rights - but I don't give a fuck about their rights because they don't give a fuck about my rights.

The big corps think they hold all the cards - but there are things that we consumers can do to fight back. After all 0 this is a country of the people, by the people, and for the people. Not of big corporation who think they can enslave us and walk over us any time they want to. I want this web site to be a turtorial about how people like you and me can stand up to these motherfuckers and show them that the People rule. And we do that by taking money out of their pockets.

Now - there are plenty of other people out there with similar stories of being censored or otherwise ripped off be PayPal and the comment section is open for you to tell your PayPal story. Go ahead and put in links to other PayPay sucks sites and tell us who is better. It's time that the online community organized to move away from unethical corporations like eBay who owns PayPal and find services who will play ball with us on OUR TERMS.

And - I want you to let PayPal know that you saw this web site and let them know what you think aboiut it. Here is an Email Form to tell them - you saw it hear - you listened to the recording - and what you think about it.

One think to keep in mind is - PayPal is not a bank - nor do you have the protection that banks offer. They are also not a credit card company. They act like they are a fiscal instution but Master Card and Visa aren't playing moral police with me. And as you can see - if they decide to take your money - they just take it. Even if you transfer your money out of paypal the day before they close your account.

Also - if you are going to link to this page - don't use the blog url. Use this URL instead:

http://paypal.ctyme.com/paypal/paypalsucks.htm

Here's another PayPal Warning Site I found.

Other PayPal Sucks Sites:

http://www.paypalsucks.com/
http://www.internationalterrorist.com/paypal.html
http://yro.slashdot.org/yro/04/05/18/0128201.shtml?tid=126&tid=153&tid=172&tid=93&tid=95&tid=99
http://www.gnutellanews.com/article/12148
http://www.tcj.com/messboard/ubb/Forum1/HTML/007500.html
http://seclists.org/lists/politech/2003/Mar/0040.html
http://dir.salon.com/tech/feature/2001/02/23/pay_pal/index.html
http://www.whatreallyhappened.com/paypal.html
http://www.aboutpaypal.org/
http://groups.yahoo.com/group/paypalperil/
http://www.outofthedark.com/CorporateWars/PayPal/index.html
http://www.ygoodman.com/paypal.asp

What is PayPal?

PayPal is an online service that allows you to email money to other people.

----------------------

Why is my account access limited?

Your account access has been limited for the following reason(s):
# Jun. 13, 2004: In accordance with PayPal's User Agreement and Acceptable Use Policy, we have closed your account. Your funds may be held for 180 days from the date of your last transaction. After 180 days, you will be able to access your funds by requesting an online bank transfer or, if applicable, a check from PayPal. Please update your address or bank information as we cannot be held responsible for checks issued to an incorrect address. We do ask that you please remove reference(s) to PayPal from your site.

(Your case ID for this reason is PP-040-853-646.)