I have started Court Proceedings against Paypal (Europe) & Paypal (UK)

[tspkm]

Today i submitted my Court application to sue Paypal (Europe) Ltd & Paypal (UK) Limited for the amount of £185.78 that has been frozen in my paypal account for over 6 weeks.

 

I sent numerous emails and letters and sent them a letter by recorded delivery informing them that they had 7 days to release my funds as they were holding them against my will.

 

I'm wondering whether they will just do nothing and i will win by default or maybe they might settle out of Court?

 

I'm not sure what my chances are, I have loads of emails printed out for evidence if required showing that Paypal refused point blank to release my money despite me requesting it several times, I also asked them to send documented evidence in writing that they could legally hold my money for the reason they gave for freezing my account which was "high risk or suspicious activity" which is a load of rubbish and they couldn't provide evidence of that because there never was any high risk or suspicious activity.

 

What do you think will happen with this case? Really i should win as i think they are wrongfully holding my money and refusing to release it without good reason and have said they have no intention of releasing it to me even though it is my money and belongs to me.

 

When you open a Paypal account the contract or agreement is with Paypal S.A.R.L & CIE.S.C.A, 5th Floor, 22-24 Boulevard Royal, L-2449 Luxembourg.

 

However they can be sued in the UK as they have offices in the UK, I have searched on the Companies House Website and can confirm that they are under Paypal (Europe) Ltd & Paypal (UK) Limited at Whittaker House, Whittaker Avenue, Richmond, Surrey, TW9 1EH and this is the address i have used to serve the Court Papers.

Edited July 11, 2009 by tspkm

[tspkm]

What do people think about my chances with this one then?

 

I have a bad feeling about it but i feel as if they are unlawfully holding my money, What are the chances of them possibly doing an out of court settlement? I cannot possibly see what they could say to defend themselves in this case.

[buzby]

I agree that without lawful excuse they are not playing fair - but as discussed before, they could just as easily ignore the action as not competent and get you to refile at your expense with a proper EU action valid in Luxemborg. As the deed is done, let the process follow through and see what turns up.

[tspkm]

Cheers Buzby, People need to start getting the media involved to put some pressure on Paypal and stop them from taking people's money.

 

I wouldn't hesitate to contact newspapers about it.

[buzby]

Ah, newspapers...! One off's are of little interest - but if I had to pick one to run with, the Daily Mail's Money Section would by my hot favourite!

[Toulose LeDebt]

Please keep us informed of your progress. With the introduction of unfair terms in contracts legislation Paypal surely must be heading for a clash with the OFT by now?

[buzby]

OFT? They've no remit - PayPal is a foreign company - you'll need EU Law to deal with that!

[tspkm]

The claim was accepted and processed by the Court this morning so Paypal will now be served with a claim and will have 14 days to defend.

 

I am really hoping that they won't be able to worm their way out of it by saying they are based in Luxembourg, They still operate in the UK so surely they can still be sued in the UK?

 

I got another message from paypal today it says:-

Thank you for your recent email, dated 5 July 2009. I can confirm that we

maintain the decision to part ways with you, and we are satisfied that all

actions taken were done in accordance with the terms of our User Agreement,

which you agreed to on 2 May 2009.

 

I have included a copy of our final response for your reference below.

 

Also as it says above Paypal ended our relationship and parted ways yet they still think they have the right to keep my money for 180 days, Surely that is wrong?

 

I would have thought that if they ended our relationship they would have to release my funds to me immediately?

[ForestChav]

OFT? They've no remit - PayPal is a foreign company - you'll need EU Law to deal with that!

They have offices in the UK, as the opening post says.

[buzby]

To answer your last question first - IF their T&C permit them, and you agreed to it, then it cannot be 'wrong'. I'm still not clear why it was done, but if caused by fraud concerns, then they'll have a get-out for most complaints.

 

As to your first point, do remember all the court has done is accept you payment and provided a service, they are in no position to comment or advise on the stability of the action (even if it is patently erroneous, although some clerks to try to offer pointers). As for 'serving' the defender, they simply pop a letter in the post, no Recorded Delivery, nothing special at all, and they do this only as an 'obligement' to the personal litigant.

 

Do keep us posted!

[buzby]

They have offices in the UK, as the opening post says.

 

Having already taken PayPal to court when their original European headquarters were located (Dublin), I can confirm the OFT has NO interest in a Luxembourg company.

[tspkm]

Do their T&C's actually stand up though? They have provided me with no proof of why my account was frozen, They say "high risk or suspicious activity" but when i asked them for legal documented proof i never received anything back from them, Obviously because there is no proof, To me it seems from reading a lot on the internet that this happens to loads of people, It's as if they just use any old excuse to freeze someone's account.

 

I'm hoping that they might now take me seriously and not think i am bluffing, An out of Court settlement or something would be nice, I am not too confident though as Paypal seem to worm their way out of anything.

 

I have complained to the FOS about them too.

[tspkm]

Having already taken PayPal to court when their original European headquarters were located (Dublin), I can confirm the OFT has NO interest in a Luxembourg company.

 

What addresses did you use for Paypal when you took them to Court?

[buzby]

I don't hold them in high regard I mist admit - but just as anyonr muttering 'Health & Safety' can get away with almost anything, 'Fraud Prevention' as is the claim here, show them to be acting in a 'responsible manner' unless you can prove otherwise. Also, whilst it is bad enough you're deprived of your money got 180 days, at least you know when you are getting it back.

[buzby]

What addresses did you use for Paypal when you took them to Court?

 

PayPal's HQ was in Blanchardstown Industrial Estate, Dublin. (It was originally eBay's HQ until they moved to a bigger building).

[tspkm]

I don't hold them in high regard I mist admit - but just as anyonr muttering 'Health & Safety' can get away with almost anything, 'Fraud Prevention' as is the claim here, show them to be acting in a 'responsible manner' unless you can prove otherwise. Also, whilst it is bad enough you're deprived of your money got 180 days, at least you know when you are getting it back.

 

Thing is though i have read numerous stories on the internet and a lot of people don't get their money back after 180 days which in my book is theft, It's almost theft now because witholding someone's money against their will and after requesting it back is theft surely or is an offence of some kind?

[tspkm]

PayPal's HQ was in Blanchardstown Industrial Estate, Dublin. (It was originally eBay's HQ until they moved to a bigger building).

 

Doesn't their address have to be in the UK or Wales when taking them to Court? That is what is said when i filed my claim at the weekend.

 

What exactly happened in your case?

[buzby]

They are a payment processor, as such their conduct is covered by your joint agreement. You can only 'get' them if they are acting contrary to said agreement.

[tspkm]

Thing is though regarding their agreement would the Court accept their terms and conditions? Surely they can be overruled?

[buzby]

The troube is you had already agreed to abide by them, and if you are attempting to get a variation on those terms because they were somehow unfair, then that is a differnet action, and one you cannot undertake through Moneyclaim. You'd be seeing a release because of a variance with Consumer & Contract Law - not something you'd want to aegue if you are picking up the tab!

[middenmess]

I think that paypal is registered as a bank in Luxembourg.

 

Postings on the Community Forums on ebay suggest that after complaining to the FOS [i think?] with their £350 cost to paypal usually results in an early settlement.

 

What does ' I can confirm that we

maintain the decision to part ways with you' mean exactly?

[tspkm]

I think that paypal is registered as a bank in Luxembourg.

 

Postings on the Community Forums on ebay suggest that after complaining to the FOS [i think?] with their £350 cost to paypal usually results in an early settlement.

 

What does ' I can confirm that we

maintain the decision to part ways with you' mean exactly?

 

I complained to the FOS around 10 days ago, Got an aknowledge letter from them today.

 

Regarding the "I can confirm that we maintain the decision to part ways with you" Paypal have ended our agreement and confirmed that they do not wish to do business with me again, I have emails printed out to prove this.

 

Aren't they basically ending our agreement? So why do they get to keep my money for 180 days?

 

Surely it means that they should release my funds to me?

[middenmess]

I use paypal extensively and as others I'm sure will confirm,their operating methods work well until you have an issue with them, and at that point they become a law unto themselves and appear to do as they please with scant ,if any,regard for their aggreived customers.

 

Have you posted on the Q & A forum on ebay as there are others who have been in a similar situation with paypal who have opened threads there and there might be some advice on them that might prove useful to you?

 

Brief info on holding funds here---

 

eBay Forums: PayPal Clarification - Fraud & ...

[phils2309]

I to have recently commenced proceedings in my local County Court against PayPal for freezing just over £500 who a few days ago filed an Acknowledement of Service meaning they plan to defend my claim. They have also notified the court amending the original 2 Defendants on the N 1 Claim Form (PayPal (Europe) Ltd and PayPal (Europe) S.à r.l. & Cie) to PayPal (Europe) S.A.R.L. ET CIE wondering why. It is worth mentioning that an individual can serve court documents on a company that is located in a Member state if that company has offices here in the UK thanks to legislation that was introduced in 2008 with courts familiar with it. I asked Paypal for their grounds and any wrongdoing by me (ie dates and times) in freezing my funds prior to issuing proceedings and have not done so and must to support its actions. If I have any more details I will post them here.

 

 

Today i submitted my Court application to sue Paypal (Europe) Ltd & Paypal (UK) Limited for the amount of £185.78 that has been frozen in my paypal account for over 6 weeks.

 

I sent numerous emails and letters and sent them a letter by recorded delivery informing them that they had 7 days to release my funds as they were holding them against my will.

 

I'm wondering whether they will just do nothing and i will win by default or maybe they might settle out of Court?

 

I'm not sure what my chances are, I have loads of emails printed out for evidence if required showing that Paypal refused point blank to release my money despite me requesting it several times, I also asked them to send documented evidence in writing that they could legally hold my money for the reason they gave for freezing my account which was "high risk or suspicious activity" which is a load of rubbish and they couldn't provide evidence of that because there never was any high risk or suspicious activity.

 

What do you think will happen with this case? Really i should win as i think they are wrongfully holding my money and refusing to release it without good reason and have said they have no intention of releasing it to me even though it is my money and belongs to me.

 

When you open a Paypal account the contract or agreement is with Paypal S.A.R.L & CIE.S.C.A, 5th Floor, 22-24 Boulevard Royal, L-2449 Luxembourg.

 

However they can be sued in the UK as they have offices in the UK, I have searched on the Companies House Website and can confirm that they are under Paypal (Europe) Ltd & Paypal (UK) Limited at Whittaker House, Whittaker Avenue, Richmond, Surrey, TW9 1EH and this is the address i have used to serve the Court Papers.

[tspkm]

I to have recently commenced proceedings in my local County Court against PayPal for freezing just over £500 who a few days ago filed an Acknowledement of Service meaning they plan to defend my claim. They have also notified the court amending the original 2 Defendants on the N 1 Claim Form (PayPal (Europe) Ltd and PayPal (Europe) S.à r.l. & Cie) to PayPal (Europe) S.A.R.L. ET CIE wondering why. It is worth mentioning that an individual can serve court documents on a company that is located in a Member state if that company has offices here in the UK thanks to legislation that was introduced in 2008 with courts familiar with it. I asked Paypal for their grounds and any wrongdoing by me (ie dates and times) in freezing my funds prior to issuing proceedings and have not done so and must to support its actions. If I have any more details I will post them here.

 

I hope you and me both win because they really are a terrible company to deal with.

 

I have lots of evidence i can provide the Court, I have asked Paypal to prove their claims of freezing my account for suspicious activity and up until now nothing so how are they going to defend themselves?

 

Also I will be providing the Court with evidence that Paypal have ended our relationship and probably ended our agreement yet they still refuse to release my funds, I will fight them all the way and I am determined to win.