PayPal, which is owned by eBay and has been in the business of moving money online for more than a decade, has yet to respond to the complaint.
Potential class members include anyone who has had a hold placed on their account anywhere in the US.
The company is less than helpful when PayPal customers ask why the money is being held, says Miller, an attorney with the Chicago firm of Freed & Weiss. "PayPal has not been very good at working with people when there is a hold put on the account. They have a lot of hoops they want people to jump through when people call to find out what's going on.
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The suit is in its early stages and Miller can't say how many PayPal accounts are affected or how much money may be tied up in accounts. "We suspect it the amount is a pretty high number," she says.
The suit seeks to release the money impounded in PayPal accounts and to return it to customers with interest. The suit also aims to force PayPal to end the practice and, if an account is frozen, to force PayPal to provide customers with a reason.
Julie Miller is an attorney with Freed & Weiss in Chicago. She has a BS from Pennsylvania State University and earned her JD at the Indiana University School of Law—Bloomington. Freed & Weiss is a national class action law firm and devotes its practice to plaintiff representation.