Kenneth A. McCready, J.D. was a successful seller on eBay using the ID "Speedy." He claims that eBay kicked him off the site, and he was forced to file for personal bankruptcy as a result.
"I've filed a motion to have eBay held in contempt in my personal bankruptcy case (filed in April) because it was engaged in debt collecting on behalf of those users who alleged I was a fraud," McCready said.
McCready alleges that eBay is acting as an illegal collection agency, an illegal insurance company and an illegal "internet auction listing service" (under a new Illinois put into place in August 2002). In a "Debtor's Petition for Rule to Show Cause, Directed to eBay Inc., Respondent," McCready outlined his frustration in dealing with eBay. He claims eBay "refuses to inform petitioner of a single essential detail which any alleged debtor needs to know in order to pay off the extorters or register the appropriate dispute."
McCready said he was unable to talk to an eBay representative by telephone, and eBay now requires its users to use a Web-based form. He alleges this runs afoul of multiple debt-collection practices law.
McCready said he is preparing a suit to be filed in federal court arising under eBay's alleged violations of federal law (Fair Credit Reporting Act, Fair Debt Collection Practices Act, Federal Arbitration Act, RICO, etc.).
"I'm handling these cases myself because I have a law degree, and who can afford to hire an attorney nowadays?" McCready said. "That would cost me in excess of $200,000 at least."
"I don't have to win, in order that eBay loses," McCready said. "I intend to widely and broadly spread the news of these laws that eBay's violating, and, if I do not win, the next 30,000 or so plaintiff's against eBay in, say, for instance, its role as an illegal insurer may win."