There is a new class action suit against PayPal being handled by a firm in Chicago I have heard and read about.
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New PayPal class action suit - and old PayPal class action lawsuits
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There have been various lawsuits against PayPal including this one from 2002
410 Gone
This lawsuit was over PayPal's illegally freezing customers' funds during limitations. It was settled
USATODAY.com - EBay's PayPal to settle class action suit for $9.25M
but anyone who knows anything about PayPal knows that you practically need tech support from Modee to pry any dollars loose from them after they permanently limit you.
I actually received a class action payment (under a hundred dollars as I recall) pursuant to this 2002 lawsuit, which was settled in 2004:
Page Not Found | Snopes.com
There was another one in 2002 over the fact that PP used to force customers to go through arbitration in San Luis Obispo, CA for all disputes. The premise of that one was that arbitration is expensive and especially for someone not local to southern California, unwieldy.
http://www.screw-paypal.com/paypal_lawsuits.html
This latest 2010 lawsuit from Freed & Weiss (a firm that specializes in class actions)
180-Day Hold Sparks PayPal Suit
Seems to me pretty much a rehash of the 2002 one over illegally freezing funds. Maybe this time they will actually force PP to change their policies, not just cough up a few dollars and keep on with what they were doing.
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