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Paypal Sued For Rampantly Freezing Customer Money

PayPal is one of the leading money transfer platforms.

It is used across the world, including in Kenya, where freelancers, including online writers, use the service to receive payments.

However, PayPal has been receiving backlash from users who have seen the platform hold cash without giving them any explanations. This has been the case in Kenya, as well as other developing nations.


The company has since been sued, and according to three users who presented the case to the courts, PayPal is accused of violating racketeering laws by freezing customer money without giving explanations.

Often, the American company issues vague responses, and customers don’t receive their money on time. In other cases, customers get tired of following up on such issues and lose their money altogether.

PayPal, which hosts more than 325 million accounts, can freeze money for up to more than six months.

The issue was brought up in California where the case was filed.

The freezing has been termed as an unlawful seizure and puts customers at a disadvantage at a time when they might desperately need the cash.

The plaintiffs say they have filed the case to represent anyone whose money has been held by the platform.

It has not been revealed how much damages the plaintiffs are asking from the wealthy company.

Kenyans have always posted their issues with the platform on social media networks.

Others say they have lost up to USD 2000. That is a substantial amount to freeze, bearing in mind the corporation sometimes fails to give an explanation.

While the firm has competition, it is preferred by many users and businesses that remit funds to their colleagues, family, and friends.

Some rival platforms such as WorldRemit work perfectly with Kenya’s M-PESA platform, thus eliminating the need to use another service to move money from the service to say, a bank wallet.

PayPal allows customers to move cash from it to banks such as Equity and M-PESA.  

Depending on the amount, M-PESA is near immediate, while Equity withdrawals are settled in less than 24 hours.


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