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PayPal sued by aggrieved customers

Alleged wrongdoing regarding customer accounts...

By Heather McLean

Published: 14 March 2002 16:37 GMT

Online payment company PayPal has been sued for restricting, freezing and closing ecommerce customer accounts without reason.

The lawsuit - lodged on Tuesday on behalf of three customers - also claims the service has purposely made it difficult for users to conclude disagreements with the company.

The suit against PayPal is seeking nationwide class action status.

PayPal claims the suit is without merit, and intends to launch a "vigorous" defence.

PayPal claims to be attracting 25,000 new users each day to its existing 14 million-strong customer base, and processed £3.5bn worth of online payments during 2001.

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