PayPal sued for freezing customer accounts without explanation

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PayPal put a hold of as long as six months on funds for alleged violations of its 65-page user agreement.

PayPal Holdings Inc., a popular digital payment platform, violated racketeering laws by freezing customer money and refusing to provide an explanation for the move, three account holders alleged in a federal lawsuit.

Two California residents and a Chicago businessman claim in the lawsuit that PayPal’s hold on the money amounts to an unlawful seizure. The three plaintiffs are proposing a class-action lawsuit on behalf of all account holders who have had their money placed on hold.

 

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