Judge says PayPal's arbitration rules unfair....
Company attempts to isolate itself from challenges, he rules.
A federal judge says PayPal, the fast-growing online payment service, has a mandatory arbitration policy that is unfair to customers who complain that their accounts are being mishandled.
The ruling by U.S. District Judge Jeremy Fogel of San Jose allows customers to take their grievances to a jury rather than an arbitration panel. Fogel also refused to dismiss a lawsuit that seeks class-action status on behalf of thousands of PayPal customers nationwide.