This story has been discussed around the web for the last several days regarding PayPal and how they froze people's account who were trying to generate donations for Katrina victims.
You can read a few here:
http://www.wired.com/news/hurricane/0,2904,68788,00.html?tw=rss.TOP
http://forums.dealmac.com/read.php?1,2373958
http://www.bit-tech.net/news/2005/09/05/somethingawful_paypal/
And some threads here on our forums:
http://www.paypalsucks.com/forums/showthread.php?fid=3&tid=9570&old_block=0
http://www.paypalsucks.com/forums/showthread.php?fid=3&tid=9634&old_block=0
http://www.paypalsucks.com/forums/showthread.php?fid=3&tid=9630&old_block=0
I found this page http://en.wikipedia.org/wiki/Something_Awful for more details of the site Something Awful.
(Although that was not the only account affected.)
I wanted to wait a bit before I commented on this...
I realize in today's world the moral fabric that makes up humanity has more rips and tears in it today than perhaps any other time in history, and fraud and tragedy seem to go hand in hand, so I do realize the need for scrutiny at times like this.
However, PayPal's actions in these cases perfectly highlight what has been appearing on this site for the past 5 years. PayPal shoots first, then asks questions later. Instead of looking at how people conduct their affairs (and PayPal account) they simply assume everyone is a criminal.
If a little girl can setup a lemonade stand, or a school children can sell cookies to donate to their charity of choice for the victims of Katrina, why is it net citizens have to acquire permission from PayPal to do the same? And in fact, that permission is denied as a matter of PayPal policy.
It's really sad that it takes the worse natural disaster in US history to expose PayPal the twisted & distorted corporate mental process that goes on there, but now many more people will see PayPal for what it really is: a mean spirited bully.
Also, why is it PayPal aligns itself with a questionable charity, and at the same time refuses to work with the Red Cross or other well respected charities?
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