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Problems With PayPal Withholding Your Money? You're Not Alone

SACRAMENTO (CBS13) - More and more people are reaching out to CBS13 with complaints about PayPal denying them access to their accounts without much of an explanation.

The first time the Call Kurtis team looked into this was for Jennifer Hardy of Wheatland. She and her friends were planning a camping trip in Folsom, but when Jennifer's friends started reimbursing her for the campground reservation, PayPal closed her account for violations of their terms of service.

After trying to regain access multiple times without success, she reached out to Kurtis. Once we got involved, PayPal restored Jennifer's access without an explanation.

The Call Kurtis team did some more digging after getting additional complaints, and, as it turns out, PayPal is now getting sued for those practices. So we reached out to the attorneys on the case.

"What we found as the case began to get some traction, even before we filed, is that this is happening to thousands and thousands of people globally," said Eric Bensamochan, one of the lead attorneys representing the three people suing PayPal.

The attorneys say that everyone from schoolteachers to businesspeople has reached out to them with similar complaints. So much so, that they've started a website:

If you've had similar problems with PayPal and never got your money back, Bensamochan and his colleague are eager to hear from you. They are collecting testimonials in the hopes of turning the lawsuit into a class action by the end of the year, meaning that anyone who was impacted and can prove it, might be eligible for compensation.

We reached out to PayPal for a comment on the lawsuit and were told that the company is reviewing the court filings and "will respond to the allegations through the appropriate legal channels."

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