PayPal is designed to make transacting online simple and streamlined. You use your account to pay people and get paid and to make purchases from stores that accept the service.
But because PayPal does do business in a new and somewhat suspect sphere -- online banking and shopping -- it has adopted strict anti-fraud policies that anger users and lock them out of their accounts and their money. Moises Zepeda, who sued the company on behalf of a class of plaintiffs whose accounts were improperly locked for 6 months for security reasons, complained that users were not paid interest while money in their accounts was frozen. PayPal agreed to settle the suit for $3.2 million, reports Investor's Business Daily.