posted on February 21, 2002 12:09:48 PM
technerd
ultimately it might just lead to better customer service for us poor people who paypal treat like sh1t
posted on February 21, 2002 12:16:11 PM
Just another of the multitude of reason to hate attorneys.
Class action lawsuits are a joke and their outcomes end up being a slap in the face with a white glove for the very people they are supposed to benefit.
I'd send the $3.57 check back to the law office with a note requesting that they apply these funds to your attorney's monthly private club membership.
Next time, you may just want to "opt out" of any class action lawsuit letter you receive. You'll get more that $3.57 worth of satisfaction.
posted on February 21, 2002 01:27:14 PM
what can you do if paypal makes you touch your toes not much! they aint regulated they do as they please....nice position to be in
posted on February 21, 2002 01:48:31 PM
Well, it certainly won't end the abuse of the legal system by extortionists like these lawyers. I will get $40 back out of my $5000 investment from the class action brought against Boston Chicken. The lawyers get $12 million.
What a co-inky-dink that the suit was filed right after the IPO when 1) Paypal has come in to a lot of money, and 2) Paypal is in the post-IPO quiet period when they can't respond in the press.
posted on February 21, 2002 01:50:41 PM
"John Travis, that state’s commissioner of financial institutions, said on Wednesday that a letter sent to PayPal was “blown plumb out of proportion” in the media and was a routine matter asking PayPal to comply with a new law governing wire transfers of money. He said the company has “cooperated with us and done everything they can” as far as filing necessary paperwork to transact in the state." - quote from msnbc
No real comment on the lawsuit, but atleast the LA problem will be put to rest.
posted on February 21, 2002 01:59:49 PM
I wouldn't put the LA issue to rest until we know exactly what Paypal has to do to comply besides filing the forms.
Paypal very well could have business operations that do not comply with LA regulations. I suspect that that will not be known until Paypal completes the process and LA reviews the filings. Compliance issues have yet to be addressed, not to mention LA wanting a piece of the action through regulatory fees or taxes.
posted on February 21, 2002 02:33:25 PM
Filing the forms shouldn't be an issue. Compliance with the regulations is at the heart of the problem. It is like saying that because you have a drivers license you do not have to worry about getting traffic tickets, or since Paypal has filed its income tax forms, their tax compliance must be OK.
Paypal's business practices are what the state regulations can (and probably will) impact and where the costs and other problems enter into the area of "problems" due to licensing and regulations by all the states.
As I have said before, I like Paypal and have used it extensively thus far without problems, but that doesn't mean squat when it comes to how their business may or may not comply with state regulations.
posted on February 21, 2002 03:34:03 PM
All I can say, it's ABOUT time that someone took action against unregulated paypal.com and their TERRIBLE customer service.
I have said before, that a bank cannot legally hold your money without reason, and even then you have rights.
Paypal.com, since it's not a bank or even BACKED by an FDIC insured bank, doesn't have to comply, or so it thought.
Some MAJOR changes are coming for paypal.com as the lawsuits will mount, and the states will crack down.
posted on February 21, 2002 04:17:58 PM
class action only means the lawyers get rich, everyone else gets nothing.
Let's see, I was involved in a class action lawsuit against Carnival Cruises - I got a $35 credit for a future cruise (high, but not cash, and unsure when I will cruise again)
I got a free rental at blockbuster video, and the $3.57 mentioned from MBNA.
It is in the best interest of the companies to settle, pay a few million in lawyer fees, and a few million to hundreds of thousands who get less than $5.
posted on February 21, 2002 05:09:57 PM
Class action suits are not designed to enrich the class. They are used to go after an entity that harms a lot of people a little.
The cases would never be brought unless it could be done as a class action.
The lawyers wouldn't fool with them if there wasn't a nice payoff from them.
Class action suits also have an effect on how a company does business, the suit changes corporate behavior.
posted on February 21, 2002 05:24:05 PM
I disagree - The MBNA suit SPECIFICALLY states that MBNA admits no wrongdoing, in fact, they believe they are in the right. It just is a lot cheaper for them in the long run to settle. That's all it is. Even if they were right (and I don't know if they were, it was something about being vague on an APR offer) it is cheaper to settle than to litigate...This will NOT change corporate behavior.
posted on February 21, 2002 05:36:02 PM
Even if the suit settles out, it still changes the behavior. The activities that gave rise to the suit are not repeated.
If they are repeated, which I have never seen any evidence of, the courts have the power NOT to allow the second suit to be settled out of court, and award exemplary damages.
The reason the statement is made that the defendant admits no "wrong doing" is to prevent someone not a member of the suit to use the settlement as leverage to sue for damages, and has nothing to do with actual "wrong doing". It is a legal manuever and may have nothing to do with whether any wrong was done.
posted on February 21, 2002 08:43:48 PM
That article isn't the Podunk Times, it's MSNBC. The article itself is very damaging to Paypal.
I agree with YourDesigns. It's about time. Paypal has screwed so many users that I'll be glad to see Paypal get reamed, and you don't even have to buy me dinner.
Paypal stumbled very badly at the gate. I doubt anyone's thinking of making a killing off Paypal stock now.
Re: a class action lawsuit, you sign a letter, you get five bucks back. If you think you can do better, sue Paypal yourself. Win, lose or draw, Paypal is starting to realize that it is no longer dealing with a bunch of flea market yahoos to be fleeced like sheep.
posted on February 22, 2002 12:00:04 AM
<Paypal stumbled very badly at the gate. I doubt anyone's thinking of making a killing off Paypal stock now.>
Paypal insiders still own 50 million shares. Even if they only get $1 per share, that is $50,000,000. That's more than I will make this decade. Not a bad haul.
posted on February 22, 2002 12:40:13 AM
How much money Paypal employees/insiders make off the stock plan depends greatly on how the plan was set up.
Usually they have to buy the stock at a strike price. If the stock goes below the strike price, they don't make a dime, and can actually have to pay taxes on the temporary gains if the stock was higher than the strike price when the stock vested.
Believe it or not there are "insiders" and employees that owe thousands of dollars in taxes on worthless stock from bankrupt dot coms. Some even had the shares given to them.
As example, they bought the stock at a strike price of $5 per share or it was flat out given to them, when the stock vested to them it had a market value of $100 a share. They are taxed on the $95 or $100 profit when the shares vested.
In the mean time, they either had to hold the shares for a certain period after vesting , or they held the shares and they tanked.
Guess what ? They are still taxed on the $95 per share price as income, so even the capital gains loss on the shares won't help offset the paper profit and taxes owed on it.
Many were facing bankruptacy and losing their homes over this situation.
They were trying to get special tax relief legislation through Congress for these folks, but I haven't heard anything lately about its progress.
posted on February 22, 2002 08:27:55 PM
From tomorrow's news ( I hope to find a link shortly. Where is that?....:
Word is Congress is considering legislation that would prevent lawyers from filing class action lawsuits. Instead of using lawyers to correct the wrongs of corporate giants like Ford and Firestone..........., all actions against corporate wrongdoers will be handled by cab drivers.
Initial plans are for Detroit cabdrivers to take the lead. Any time a car maufacturere gets out of line, the cab drivsrs would refuse to pick up executives heading for the airport. This would cause the executives to miss their planes, thus having to stay overnight and work on the defective products like they should have originally.
Although criticized initially, the plan is gaining approval, especially with the increase in international corporations. All cabdrivers are to register with their native language. They would be available to deal with executives from their home countries.
One cabbie, rumored to be a disbarred lawyer/attorney, demanded to be referred to as a Taxi driver and would not answer to cabbie.
posted on February 24, 2002 07:39:58 AM
has any body got an e-mail from paypal that they are not aloud to put billpoint in there ebay auction along with theres.
but - I believe that email would be generated if you have signed up with paypal's Preferred Rewards Program (which is when you receive a cash back on your paypal debit card purchases). When you sign up with the Preferred Rewards Program, you agree to advertise PayPal as the ONLY online payment accepted in your eBay auction descriptions.
So if you are showing billpoint/eBay payments in your auctions they would end up sending an email to you.
