Finally..... things are beginning to develop. Makes me wonder, given the class action against the banks relating to excessive fees..... could the interest earned by Paypal be regarded as a 'fee' against the seller.... given that it is also an unjust loss?
I read through the complaint (but stopped at Exhibit 1 - PayPal UA)
There are several angles on this - but not being a legal eagle, I won't attempt to make sense of it all except to say, I think they have it well covered.
The term 'Unjust Enrichment' is used and one place where the complaint addresses this is on page 23 - items 105 to 110 (only 13 lines all up).
The complaint specifically focuses on one key issue - the unexplained holding of funds and all the consequences that derive from that action. It includes references to the lack of information provided by PayPal and the advice given to 'get a court order or a subpoena' if anyone wants information out of them.
While this is solely in relation to the "Holding of funds" focus of the complaint, it does offer an opportunity for some of PayPal's 'customer service' practices to be presented in court - which opens up the possibility of comments and decisions by the court that could affect the same evidence in future cases (which could be to dismiss it's relevance or to set a precedent where further legal action can work off a reference point established in court) or the possibility of judicial instruction for action to be taken against PayPal for matters in which the state has interest.
The complaint does not argue that the withholding of funds
per se is the issue, just not disclosing the reasons for doing so. Without the reasons, how can members be expected to address the alleged issues so as to correct the present situation and alter operating practices to avoid future holds?
But, unless PayPal is sitting on a gem of an answer that will survive even that test, they're going to be on the back foot very quickly.
My real concern is not with the issues, the evidence, the plaintiffs, the courts or even PayPal - it is with the legal team that PayPal can afford to assemble, with the prospect of advanced expertise in smoke and mirrors that makes Felix the Cat's "bag of tricks" look like a genuine fake vinyl import from China at a 99 cent start with free shipping.
