Users outside California must travel to or hire attorneys in Santa Clara County, California to pursue legal action against PayPal in court, making litigation prohibitively expensive for most consumers.
PayPal's agreement significantly affects consumers' financial rights by requiring mandatory individual arbitration and waiving the right to participate in class action lawsuits, which limits legal recourse for disputes. PayPal retains broad authority to freeze, limit, or close accounts and hold funds — potentially leaving users without access to their money for extended periods. You can opt out of the arbitration clause by sending a written notice to PayPal's legal department within 30 days of first accepting the agreement.
Search "[your state] attorney general consumer complaint" to find your state's direct complaint form