PayPal new user agreement - required arbitration

I've received a request from PayPal to sign a new user agreement, effective July 1. It is legit; you can sign into your account and click "legal" at the bottom of the page to see the info.

The agreement requires disputes to be resolved "exclusively through final and binding arbitration, rather than in court, except that you may assert claims in small claims court, if your claims qualify." I do not like this continuing assault on our rights to a trial. I am considering dropping out of PayPal altogether.

Has anyone dropped out of PayPal as a result of this requirement and if so, how would you get paid? I haven't done a review, but I think some MS companies only pay via PayPal, and/or charge a fee to send a check ??

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Since the Supreme Court ruling, almost all major companies
include an arbitration clause in their contracts from banks
to cell phone companies. It's mainly to stop class actions.

There is movement within the consumer financial bureau
to ban them from being allowed to do so. May see that within the next year.

I've sucessfully brought worstpal to court years ago in small claims.
They tried to pull the arbitration clause on me then, but the judge
ruled against that motion since worstpal couldn't prove much
of what they claimed.

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There are no stupid questions, but there are a lot of inquisitive idiots
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When you try to please everybody, you end up pleasing nobody

Love the name, worstpal! I actually have not had any issue with PayPal for 15 years or so, but the fact that they are linked to my bank account does make me nervous that some day a disaster will occur and my bank account will be emptied.

Would love to hear about your small claims lawsuit.

This has scared me since day one... but a lot of companies only pay via paypal :/ now that I know all my companies are ligit I would love for everyone to do direct deposit

www.Facebook.com/oatsandgrins

@paf wrote:

Love the name, worstpal! I actually have not had any issue with PayPal for 15 years or so, but the fact that they are linked to my bank account does make me nervous that some day a disaster will occur and my bank account will be emptied.

Would love to hear about your small claims lawsuit.

I'm no financial wizard but I don't think that their being able to deposit money into your account means that they can take money out.

****************

Motivation increases when we assume large responsibilities with a short deadline.

No, but if you run out of PayPal funds and buy something with PayPal they just take it out of your bank account; so things can go both ways.

I'm new to MS and allowing paypal access to one of my accounts was a concern. Years ago I had my entire account frozen during a long holiday weekend, because my employer direct deposited too much money into my account. Since I had already gone thru the hassle of tying a paypal acct to our savings account, I wound up getting a new account and dumping savings money into new acct. I don't believe the banks when they say they can only add to the acct.

My issues mainly stemmed from before worstpal was owned by ebay,
and now ebay is in the process of dumping them so worstpal is about
to become their own separate company again. So will be interesting
to see what happens. Just this past week worstpal agreed to pay
millions back to consumers for fraudlent transactions, enrolling them
in their credit card without permission and other issues.

And as @pammie8223 said, they can take money from your bank account
if it's linked. As I found out many years ago, even without permission or
so they thought. worstpal will flag your debit card if you use it for several
small purchases in one day but if someone somehow uses it in europe, they
don't flag it and let all the purchases go through...thankfully my bank reversed
all the money worstpal took out of my bank account. Many people aren't so lucky
from what I know but having a good relationship pays off sometimes.

By the way, I still use them now and havent had any major issues in many
years and hopefully it stays that way once the spinoff is complete.

I have never had a problem with them. The reality is that most of the MSC pay only with PayPal. If you choose to drop PayPal, you will also have to stop shopping for many of the MSCs (unless you are willing to do it for free).

Shopping Southeast Pennsylvania, Delaware above the canal, and South Jersey since 2008

They only have access to my mystery account. That's it.

To answer your question, I think you are going to have a very rough time of it if you back out of Paypal. Most of the MSA's I've signed up with will only pay you through Paypal (or at least that is what they say). There are a few that will mail a check and if you have a close relationship with some of the MSA's you may speak with them and see if they will make an exception. But I am afraid Paypal has you by the...tail. You are going to have to go case by case with each MSA. But I agree, I dislike arbitration and if you have find a judge who has any sense of the law they will throw out the arbitration clause and allow you your right to trial.

I have been with PayPal for eight years now. I only use it for Mystery Shopping payment. I would never want all of these companies to have access to my account through direct deposit. Too much information and to easy to steal.

If you link your bank account or credit/debit card to paypal they can withdraw money from those sources when a purchase is made that exceeds your paypal ballance. The fix for that is to remove your backup payment from paypal and just use your paypal card to withdraw your money off. I recently set up a service I wanted to try using my paypal card because I knew it didn't have much money on it in case I decided I didn't want the service. So when my free trial was up they charged my card and paypal took the money out of my debit card I had on file. Fortunately I intended to keep the service but I decided then to remove the card from the paypal account. Now of course I have to have the money on the paypal card if I want to make a purchase but I am secure in the knowledge that no one can get more than what I leave on the card.

Ah, interesting solution to linking bank account; although it requires a certain amount of paying attention.. I've got two automatic monthly payments on paypal now; I like that I don't have to spread my credit card number around.
The thing that really bugs me is agreeing to give up right to trial.

@paf wrote:

The agreement requires disputes to be resolved "exclusively through final and binding arbitration, rather than in court, except that you may assert claims in small claims court, if your claims qualify." I do not like this continuing assault on our rights to a trial.
@ wrote:

Most of the MSC agreements also have arbitration clauses. I hate to sigh anything with an arbitration clause, but these days it is in most every agreement (health care, credit cards, etc). I agree with you about this assault on our rights. I've never sued anyone in my life, but sometimes we need the fear of litigation to keep some Corporations honest.

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PayPal new user agreement - required arbitration

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