20 August 2017
Find out more

PayPal faces class action threat

14 March 2002  |  2319 views  |  0 PayPal faces class action threat

Person-to-person payment operator PayPal is being sued for unnecessarily restricting, freezing or closing accounts and making it difficult for customers to resolve complaints.

The federal lawsuit, which is seeking nationwide class-action status, was filed in a San Jose court on behalf of three individuals. It follows the recent filing of a patent infringement lawsuit against PayPal by New York-based PKI company CertCo.

The new legal challenge took the shine off an earlier optimistic statement by the company that it expects to escape threats from state banking regulators to close the system down unless it obtains a money transmisstion license.

PayPal has been publicising a letter from the FDIC which points out that the email-based money transfer service does not actually handle any customer funds - implying that the company should therefore remain free from the burden of banking regulations.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

PayPal raises $70.2 million in IPO

PayPal raises $70.2 million in IPO

15 February 2002  |  2946 views  |  0 comments
Bank regulators clamp down on PayPal

Bank regulators clamp down on PayPal

12 February 2002  |  2932 views  |  0 comments
Auction activity boost for P2P payments

Auction activity boost for P2P payments

21 January 2002  |  3103 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.worldpaymentsreport.comdownload the paper now

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
9046 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7864 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7276 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6485 views 1 | 5 tweets | 3 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
6359 views comments | 14 tweets | 12 linkedin

Featured job

Find your next job