Use PayPal? Have you opted out of mandatory arbitration yet?

Yeah, I’m busy too, so I could easily have missed the email from PayPal.

Unless I opt out in writing from mandatory arbitration for any disputes with PayPal,
I’ll be opted IN. So then I won’t be able to join a class action suit against PayPal if I
have a real grievance.

I’m not a big fan of being opted in to anything by default; I’m also not a big fan
of voluntarily limiting my rights. And here at we see a lot of
complaints about merchant service providers and money transmitters.

I’ve never personally had an issue with PayPal. But if I do have a complaint, I want to
pursue the matter in any way I choose—via, Small Claims Court, or
yep, maybe I’d join a class action suit.

Why give up that right? Why promise in advance that I’d never, ever join a class
action suit, no matter what the problem? Why roll over and just accept a road block
to basic consumer protection?

I just can’t think of a good reason.

Now I will say that a lot of cell phone providers already specify mandatory
arbitration in their contracts and yet respond productively to the complaints we
send them. But would I want to voluntarily bank on it?

Nah. I’m sending PayPal the signed, detailed letter they require by December 1 in
order to opt out, and I’m sending it by certified mail to be sure they get it. Go to
your account, look at policy updates (you’ll have to check the archive at this point)
and follow their instructions to the letter if you want to do the same.

Lots of small businesses and individuals use PayPal. I’m not an attorney and I’m not
going to give you any advice here. But if you choose to be opted in to mandatory
arbitration, do it because you agree with it, not because you missed the notice.

Leave a Reply

Your email address will not be published.