You and PayPal agree that any claim or dispute at law or equity that has arisen, or may arise, between you and PayPal (including any claim or dispute between you and a third-party agent of PayPal) will be resolved in accordance with the provisions set forth in this Agreement to Arbitrate. Please read this section carefully. It affects your rights and will have a substantial impact on how claims you and PayPal have against each other are resolved. In this Agreement to Arbitrate, you and PayPal agree to resolve any claim between us only by binding arbitration, on an individual basis, and not in any court or before any judge or jury, except for matters that may be taken to a small claims court.
Arbitration is significantly more expensive and less accessible than small claims court for individual consumers, and eliminating class actions means PayPal faces no coordinated legal pressure even if it harms millions of users in small amounts.
PayPal's User Agreement significantly affects your financial rights and access to funds — PayPal can place holds on your money for up to 180 days and limit or suspend your account at its discretion. You waive the right to participate in class action lawsuits and must resolve all disputes through individual binding arbitration, which is generally more costly and less accessible for small-dollar claims. You can opt out of the arbitration agreement by sending a written notice to PayPal's Legal Department at 2211 North First Street, San Jose, CA 95131 within 30 days of first accepting the User Agreement.
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