Paypal cancelled my customers Recurring Billing without authorization.

[Jhuthsing]

To Whom Answers This:
Thank you in advance for reading this. I was wondering what recourse I have against paypal for cancelling all of the recurring billing my customers initiated with me. I had over 70,000 USD in subscriptions that were due to recur this year . I have an email with them admitting to one of their CSR's making a mistake and cancelling all of the subscriptions.

Do I have any recourse and are they liable for the cancelled subscriptions?

Thank you again for your replies.

 

[Michael Wechsler]

This is a very good question. If you've got $70K in canceled subscriptions, I'd certainly look into this. I'd probably have a lawyer handle it if I didn't get a reasonable response from paypal. Something tells me that there is a great deal more to this story and there is no way anyone can discuss liability without all the pertinent facts. What do you mean that all of these subscriptions were canceled? Couldn't this simply be corrected as there is a record? What caused the problem? What has the response been? Are you still using Paypal?

 

[Jhuthsing]

This is a very good question. If you've got $70K in canceled subscriptions, I'd certainly look into this. I'd probably have a lawyer handle it if I didn't get a reasonable response from paypal. Something tells me that there is a great deal more to this story and there is no way anyone can discuss liability without all the pertinent facts. What do you mean that all of these subscriptions were canceled? Couldn't this simply be corrected as there is a record? What caused the problem? What has the response been? Are you still using Paypal?

Thank you for the reply!

I had recurring subscriptions set up with all my customers through Paypal. These were to recur yearly after the date of purchase.There was an error by one of their CSRs who made a mistake can cancelled all of the subscriptions. Their response to this was "Oops were sorry.". I asked paypal to correct it, they told me I had to contact all of my customers again to re set up the billing with them, then again this is not possible since they would have to rebuy the product to set it up. It also would no longer be on the date that it was purchased. I do use paypal just not for recurring subscriptions. I had to move to a more reliable resource.

What I am hoping for is possibly a class action(If the lawyer thinks it has happened to more people other than just me), or a lawyer if this is viable to work commission based. Maybe you have someone you could point me toward?

 

[Michael Wechsler]

What is a CSR - customer support representative? How could this person make a mistake and cancel ALL of your subscriptions? How did this person have access in the first place? You will not have a class action case unless there is clear evidence that many people were affected by something in the system - nobody will go hunting where there isn't smoke to find a mass fire.

Your best bet is to find a lawyer that might work on a contingency, which you can do so here. Be prepared to give up a sizeable amount of proceeds for the risk of the case if you don't want to at least retain an attorney and see what can be done. The first step would probably be to get a case review.

 

[Jhuthsing]

Thank you for the info. I used the form to submit my information. If I was to look in town for a lawyer to handle this case, what kind of lawyer would I want to look for?

 

[Michael Wechsler]

You'll need a litigator.