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Thread: Legal Action Against Paypal

  1. #1
    ChrisM Guest

    Default Legal Action Against Paypal

    I look at these very forum messages where people complaint about the way they have been treated by Paypal, whilst some just complain, others take county court action for recovery of funds, and others complain to the Financial Services Ombudsman, both of which are appropriate action for people to take. But to be honest that is not the answer, as it does not resolve the overall problem, Paypal continues to act as a bully in the way it treats its customers. In any event even with a court order in your favour it creates no precedent as one county court is not bound by the decision of another. The answer is to take the case through the High Court, but as most claims are for small sums then seeking a claim for the money owed would force you back into the small claims court, even if you were lucky enough to get it into the High Court Paypal would prevent you gaining a significant cost order in your favour by paying into court the money you allege is owed.

    Therefore the answer is to seek a declaration from the High Court without a monetary claim, that is a direct challenge to the rules and procedures that they use to determine a complaint. In other words are these practices and rules in accordance with UK law.

    In my own case the sum is a mere 20.25, but this is the second time that they have done this to me, that is the buyer, fails to give the full or correct address, you post to the address that they supply by first class post and obtain the postal receipt. The Post Office either then delivers the item to the wrong address, or more precisely the address given by the buyer, or it goes into the pile of 250,000 lost packages that the Post Office accepts are lost every year, but in any event it is not returned to the seller. He then files a complaint to Paypal, who fails to investigate by seeking a copy of the postal receipt, and finds in the buyers favour. You are then out of pocket not only the 20.25 but also the Paypal fee which they do not return to you. in addition to this as a Paypal Pro customer they also keep the standard 5% against chargebacks for the 90 or so days, so whilst they are holding that sum they are effectively holding it twice.

    So I am now working on the case I shall lodge, first with a Pre-Action Protocol letter, and then the actual basis of the case. I shall also lodge separately a monetary claim against the buyer to recover the money I am out of pocket. But my claim against Paypal will be lodged in the Weymouth District Registry as a delaration, not for the recovery of any money, for those reading this who do not know what a declaration is, this is an application to the High Court to answer a number of questions of law. Therefore it is only a challenge to the procedures and not a claim in damages, but the important thing is that win or lose it would set a precedent that would then unless it is over turned by a higher court apply throughout England and Wales. The idea is to have a High Court judge rule that Paypal is acting unlawfully, which would then open up the flood gates to thousands of claims, but equally if it goes the wrong way then it could shut gates. Therefore before I actually go forward I want to make sure that there is a greater chance of success than failure.

    As part of this I need to hear from others with similar grievances not to be part of the challenge (I don't want to start an expensive class action), but to supply witness statements of their own problems with Paypal (but only from those with UK Paypal accounts), and its procedures for investigating complaints, and potentially have a few people then be witnesses to the way that Palpal treats its customers in the dispute resolution process. I am very concerned that I do not create bad law by a wrong decision, therefore I also welcome comments on what I am proposing.

    Chris Maile

  2. #2
    rufanuf Guest

    Default Count me in Chris

    The prats are holding 2500GBP of my money illegally,
    and deilberately try to annoy you with their canned response to emails.
    They are goona get it from me big time, lets get the ball rolling!

  3. #3
    NanoAkron Guest


    Have you thought of writing to the forum admin to either get this mass-emailed to UK residents or made front-page?

    I don't have any personal case details to offer unfortunately, but I certainly support what you're doing.

  4. #4
    sexecute Guest

    Default Fsa

    Despite having had a pre-booking system on my website for two years I was frozen out by Paypal yesterday. I have contacted the FSA who tell me that all banks have a legal obligation to treat their customers fairly. They have agreed to investigate my complaint only if others also complain ! If anybody is interested their email is [email][/email] I have also contacted the financial ombudsmen who say they will investigate my complaint on discriminatory grounds. On the whole I think these bodies are largely toothless. However, if there are enough disgruntled members on here who contact them with a quick email I will follow up my complaint and see if they actually do anything (I must confess I'm a sceptic).

    Good luck Chris, I think you should definitely press ahead with your plan and keep us posted.


  5. #5
    Andr34x Guest

    Default PayPal Class Action

    Hi there,

    I'm looking for names of people who are willing to join a list, a class action list against PayPal as I have well and truly had enough of PayPal trying to make myself and my partner look like idiots!

    If you are wanting to join this Class Action list to go to a lawsuit.

    Let me know.

    Feel free to message me back anytime.


  6. #6
    twanny Guest

    Thumbs up Follow up to Chris Maile's item on action against Paypal (UK) Ltd

    Quote Originally Posted by ChrisM View Post

    As part of this I need to hear from others with similar grievances....

    Chris Maile
    Hi Chris,
    I've been engaged in a battle with them for last 5 weeks,, treated like a child and patronised to the hilt, despite me having a 100% water tight case against them for negligence. I've spent enough hours on them now, so, if they haven't got the message yet that I am SERIOUS, that is their problem.
    On behalf of everybody else that has or is or even WILL be having similar issues with them,, please add me to your list and feel free to request details.
    Whilst we are on topic with "actions", it might be helpful if anybody with UP TO DATE information about service addresses for legal documents to be served upon Paypal (UK) Ltd,, consents to list them herein. The one's I've come across (referring to details as at 2008), MAY be out of date. This needs clarification.. Many thanks to all who participate.. Twanny

  7. #7
    mvilma6 Guest

    Default same situation with bllody paypal

    im in the situation with paypal as many of you. sold a mobile on ebay, the buyer paid with paypal and i transfered the money into my bank account, then a montha after the buyer claims the action wasnt authorized. so paypal placed a negative balance on my account. i have complaines to the financial Ombudsman Service, but today got an email from paypal saying that they have studie my case (sure!!!) and the buyer was right. so if i dont pay withing 72 hours they will pass my information to a debt agency to claim it for them.

    how the hell are they doing? can i get in trouble if i dont pay?? cos im not even thinking close to pay that bast....!!!

    sorry, im so angry that they can play with our money an we cant do anything

    any ideas guys???

  8. #8
    mvilma6 Guest


    im in your same situation, negative balance cos a buyer claim charge back, and paypal agred with them. they have giving me 72 hours to pay otherwise they will send my case to a debt payment company. dont want to loose the mobile i sold legally and now the money that thief is claiming.

    any help, please!!!!

    what will happen if i dont pay?? cos im not thinking abt doing it at all

  9. #9
    weedluv Guest

    Default they will only ban you

    Quote Originally Posted by mvilma6 View Post
    im in your same situation, negative balance cos a buyer claim charge back, and paypal agred with them. they have giving me 72 hours to pay otherwise they will send my case to a debt payment company. dont want to loose the mobile i sold legally and now the money that thief is claiming.

    any help, please!!!!

    what will happen if i dont pay?? cos im not thinking abt doing it at all
    there is not much they can do they will just permanently restrict your account and any other accounts that are on your ip address
    my brother owes them 1 thousand same type of thing,,
    but he never replied or went near his account again its been about 2 years now , nothin .

  10. #10
    unhappychappy Guest

    Default I too have had some problems of late

    PayPal are making withdrawal from my account a nightmare. The first withdrawal was met by a security flag after which when the withdrawal continued to my bank was returned with the excuse that my bank had sent it back. I spoke to my bank and they had no evidence of such a transaction and suggested I try to withdraw again. I emailed PayPal first and they apologised for the inconvenience and said it was OK to make the withdrawal. I did so and recieved an email to say they were processing the withdrawal and gave a date for when it would arrive at my bank. I thought everything was fine, but when I checked my PayPal account an hour or two later, the withdrawal ammount states it is pending. Does this mean it hasn't yet been sent?

    Anyway, I have sent my concerns onward to the Luxembourg Regulator and asked for an investigation, and also sent a website email to the Luxembourg Banker's Association to ask if PayPal's actions were standard banking practices in Luxembourg? I have also emailed the Prime Ministers Office with a similar request for intervention and help and will continue to do this untill I get some answers.

    Email address for the Luxembourg Regulator is: [email][/email] and their telephone number is 00 352 262 511.

    The Luxembourg Banker's Association website is: [url=]Homepage | ABBL[/url] and you can send an email within their contact page.

    As an extra vehicle I sent an email to the Prime Ministers Office and again you can send an email from their contact pages. Here is the form to fill out before sending your message: [url][/url]

    Hope this helps. If these institutions are bombarded with complaints they might be moved to do something about PayPal.


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