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YanBz
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Paypal updates policy. What do you think?

submitted on October 22, 2012 by YanBz in "Member's Lounge"
Just received an email from Paypal about their policy update. As usual you have no choice, you either accept or close account, however this is not the part that got me confused. The new policy says that starting December 1, 2012 "you will only be permitted to pursue claims against PayPal on an individual basis".

I always thought that this was the legal right of anyone in the US how they intent to sue a business, as an individual or as part of a group (or class). Anyone there knowledgeably about the legal side of this change? What do you guys think about it?
 

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  • 162080
    HouTex
    admin
    Posted by HouTex on October 22, 2012
    [reply] 2 0
    According to these, they are trying to prevent class-action lawsuits -
    http://www.geekosystem.com/pay.....-lawsuits/
    http://www.theverge.com/2012/1.....n-suit-ban

    But there is a loophole - a written opt-out notice.
    On November 1st, PayPal will follow Sony, Microsoft, Netflix, and many others in banning class action lawsuits by customers. Its new terms of service require any disputes between a user and PayPal to be resolved with arbitration, or in small claims court if they qualify. Unless users send a written opt-out notice, they’ll be barred from group suits in the US, something that’s become increasingly common for companies since last year.

    Not every business can ban class action suits. Individual exceptions in separate laws let consumers bring them against insurance companies, mortgage loan providers, and (if you’re a member of the military) payday lenders. Other consumer protections still apply across the board. But for most companies, it’s common now to add a clause banning group suits, and we’re likely to only see more of them in the coming years.
  • 162083
    clover
    professor
    1 6 7
    12 11 2
    Posted by clover on October 22, 2012
    [reply] 2 0
    I have no problem with it. I hate "Jump on Board" Group lawsuits. I love PayPal and the convenience.
  • 162102
    Solstice
    professor
    1 6 2
    11 4 1
    Posted by Solstice on October 23, 2012
    [reply] 3 0
    Keep in mind that simply because something is in a contract, does not mean its actually enforceable or entirely legal. I suspect this would end up being one of those cases if a group opted to bring another class-action lawsuit.

    Honestly, if it were not for Ebay and Buxr, I would have all but abandoned my Paypal account awhile ago.

    Heck, Ebay was really the only reason I ever bothered to get one anyway. (Nice racket they have there.)
      162129
    • clover
      professor
      1 6 7
      12 11 2
      Posted by clover on October 23, 2012 [reply] 0 0
      Yupper! As a Teacher's Assistant...I make crap! I make a little bit of extra money through eBay. PayPal is very quick and easy. I also use Bill Me Later to purchase small items and pay them off within the specific time frame without interest.
  • 162139
    YanBz
    admin
    Posted by YanBz on October 23, 2012
    [reply] 1 0
    They do what every company in their case would probably do: milk their customers as much as they can. TicketMaster is probably in a similar situation but in a different market.

    There is plenty of competition but none is as convenient as Paypal, and so we all complain and at the end of the day... we still shell out the fee. Smile
      162159
    • samm_is
      novice
      12 8
      Posted by samm_is on October 24, 2012 [reply] 0 0
      And that fee seems to be pretty large - I've never had to make a payment for receiving money (non-sale/eBay) before!!
    • 162160
    • samm_is
      novice
      12 8
      Posted by samm_is on October 24, 2012 [reply] 0 0
      I've switched to using Google Wallet/Checkout - it does require an initial fee free load up (min $10, can be paid via credit card), with fee free sending/receiving to other Google accounts.
      I believe Microsoft had announced plans for a similar feature in Win 8/Win 7.8.

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