Binding arbitration policy change/statement

[RedDawgEsq]

I am very confused about the recent policy change/statement about binding arbitration, particularly this statement:

Unless you opt out: (1) you will only be permitted to pursue claims against PayPal on an individual basis, not as a plaintiff or class member in any class or representative action or proceeding and (2) you will only be permitted to seek relief (including monetary, injunctive, and declaratory relief) on an individual basis.

Shouldn't the word "Unless" be "If"?

[Elvensmith]

Actually, the 'opt-out' procedure is clearly set forth in the policy itself, which you access by signing into your account, clicking on 'Notifications', and 'Policy Updates' on the right side.  The 'opt-out' procedures is found under the 'Disputes with Paypal' bullet, Section 14.3(e) "Opt Out Procedure'.  You basically write a letter and send it to PayPal, Inc., Attn: Litigation Department, 2211 North First Street, San Jose, CA 95131.  In the letter you say you don't agree to the binding arbitration policy, and give them your name, address, phone number, and the email address(es) used to log in to the PayPal account(s) to which the opt-out applies. You must sign the Opt-Out Notice for it to be effective.  That's it.  I agree it's best to pay for the 'delivery confirmation' with your postage.  Mine's going out today.

Elvensmith

[Aubreyg51]

Thanks Elvensmith.  Totally missed that when I first read it.

This whole matter leaves a very bad taste in my mouth; making us jump through hoops to "opt out" of something that only benefits PayPal.

[Nita9]

Totally agree, Elvensmith!  This is what happens when the legal department and the "suits" make a decision without passing the idea by one of the consumer departments (such as sales).  I really don't believe this will deter people from opting out.  I bet they get the same number of opt-outs they would have gotten anyway, but now those people will just be mad. 

I've been a long time user of PayPal, and they've always been great.  This seems a bit out of character for them.

[BrockKokopelli]

How to opt out of the new Agreement to Arbitrate (Section 14.3). This is a dishonist way of cleaning up problems inside paypal's house. I am sending my opt out letter today and if they push this through I will also be closing out my account with them. It is nothing more than a way for paypal to **bleep** up everything they do and nothing we can do about it to fix any problems they want to dump on us. SHAME ON YOU PAYPAL!!!

[JoelJoel]

The **bleep**ty opt-out process is intentional.  They know that 99.99% of users won't bother writing a letter.   The handful of people that DO opt-out will have no "strength-in-numbers" and thus no attorney group will file a class action on anything.  It's quite brilliant on GayPal's part.

[temp201906204x]

Legal gobbledygook for it's easier for us to make you accept our changes if you do nothing 

Its a backdoor method rather than have you opt in, most legal agreements try to minimise your involvement through what I would call a deceitful way for them to protect their interests rather than yours.

Its a way of changing policy with out your agreement because of your inaction, rather than allowing you the the choice of saying no through your inaction.

That's like denying you your constitutional rights because don't do anything.

To put it another way a yes action means no I want to protect my individual rights, and a no action means yes I don't want to preserve my rights.

Arbitration means no appeals, and no further pressing of your rights, and no choosing of the arbitrator.

[RedDawgEsq]

Last question: If I DO opt-out of the agreement, may I subsequently request to submit to arbitration on a case-by-case basis? I can envision (a) situation(s) where, depending on the circumstances and amount at risk, I may not have the resources (or drive) to pursue an individual suit. Again, playing devil's advocate, I may wish to take my chances with the arbiter.

[vicsan]

Yes, parties can always go to arbitration if both parties agree.  Since PayPal has already shown a willingness to arbitrate rather than litigate, you can opt out and then decide to arbitrate on a case by case basis.   I'm sure PayPal will be happy to agree to take this to an arbitrator, or panel of arbitrators.  The question is which arbitration service to use: AAA, JAMS/Endispute, or use an arbitrator from the local court's list of arbitrators in the ADR (Alternative Dispute Resolution)program list (most state courts have permissive or mandatory non-binding ADR programs depending on the amount of the claim, etc).

[Scrooge]

Amazing how an arbrtrary action by a corporate legal department can destroy years worth of company good will.

Binding arbitration requirement is bad enough, but not to allow on-line opt out for an entity that is almost entirely on line by nature, makes one wonder if the sun never shines in their environs.

[lscher]

Olivia,

Your response was helpful, but the procedure should have been in the reminder email.  

PayPal has become slightly more transparant as time has gone on, but it still has a long way to go.  I have had only one dispute in all of my time with eBay and PayPal, and it was resolved reasonably and without undue delay.  But find that the increasing limitations to the complaint process imposed by your legal staff increase the impression of mistrust.  In this era of mistrust of enormous banking institutions, and PayPal is certainly one, shouldn't you would want to have a different persona.  Why not put your entire user agreement in language that the average person might understand?  (In English this would probably be about 4th grade level).  I think that would do PayPal more good than limiting individual user rights.

Respectfully,

Larry