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PayPal Freezes Hurricane Relief Account 635

logan5 writes "SomethingAwful's forum denizens, on the call of site admin Richard "Lowtax" Kyanka, raised over $20,000 dollars to be donated to the Hurricane Katrina relief efforts. This was done via a PayPal donation link, and PayPal has now frozen the account on a twofold basis: one, that there have been reports of "suspicious behavior" from the "buyers," and two, that no shipping records have been provided for the donations." Since so many users are asking for it, SomethingAwful has provided a link for those wishing to still make donations to the Red Cross in the meantime.
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PayPal Freezes Hurricane Relief Account

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  • Coral Cache link (Score:5, Informative)

    by Deraj DeZine ( 726641 ) on Sunday September 04, 2005 @02:42AM (#13474947)
    Here's a Coral Cache link: Something Awful Paypal fiasco [nyud.net]

    I think this might be a good idea since Something Awful was hosted in New Orleans and their main servers are obviously not online at the moment, so that temporary site is probably going to be blown away soon.
  • by Anonymous Coward on Sunday September 04, 2005 @02:45AM (#13474965)
    I urge anyone with links to the media to let them know about this, submit it to your local paper, and even to the nationals. Let your local radio know, write an email to paypal threatening to close your paypal account and never use them again, the more bad press the quicker it will get resolved and they'll be under scrutiny for a while.
  • by Anonymous Coward on Sunday September 04, 2005 @02:47AM (#13474976)
    Like here. [opednews.com]

    When a grassroots political operative needed a transplant and the opposition party got Paypal to shut down the donations.
  • by Reene ( 808293 ) on Sunday September 04, 2005 @02:48AM (#13474989) Journal
    It was routed through paypal because Lowtax wanted to give Something Awful merchandise to everyone that donated over 10 dollars.

    This is far from the first fundraiser SA has run. They raised another 20k or so for body armor for soldiers in Iraq, and recently a bunch of SA goons raised over 6k in a few weeks and bought toys for sick children, which they delivered in person.

    I understand your suspicion but come on, this is is SA, home of one of the most populated forums on the internet. We goons care.

  • by The Jays ( 912400 ) on Sunday September 04, 2005 @03:07AM (#13475074)
    Something Awful is Somewhere Awful [somethingawful.com] After the plug was pulled on the popular somethingawful.com [livejournal.com], Richard "Lowtax" Kyanka of SomeThingAwful.com, hoping to focus the community's efforts on raising money for the Red Cross, in exchange for SomethingAwful.com merchandise, found his fundraising drive cancelled, by PayPal.com, when they shut down his account and stole the $20,000 dollars the members had raised for Hurricane Katrina. Everybody needs to see the complete insensitivity that PayPal has. They have no shame. They have taken money that was going to the Red Cross, used their policies against a fine internet community, and has stolen Hurricane Katrina fund money. This cannot go unpunished.
  • EBay's Phone Number (Score:5, Informative)

    by MrNonchalant ( 767683 ) on Sunday September 04, 2005 @03:14AM (#13475101)
    I think it time we give PayPal's parent company an idea of what we think of their subsidiary. I'm willing to bet that if anybody with enough seniority gets ahold of this and recognizes it for the ticking PR time-bomb it is things could be set right.

    EBay's toll free investor line:
    1-866-696-3229
    or
    1-866-696-eBay

    Have fun.
  • by IdntUnknwn ( 700129 ) on Sunday September 04, 2005 @03:26AM (#13475159)
    You've almost definitely been had. Please visit these links for more information:

    How can I tell the difference between a real PayPal email and a fake one? [paypal.com]
    What should I do if I receive a fake email? [paypal.com]
  • Deja Vu (Score:2, Informative)

    by kilox ( 774253 ) on Sunday September 04, 2005 @03:35AM (#13475190)
    Didn't PayPal get a Class Action lawsuit on the basis of something similar recently?
  • Re:RTFA (Score:3, Informative)

    by jez9999 ( 618189 ) on Sunday September 04, 2005 @03:41AM (#13475215) Homepage Journal
    So? Over here in the UK, we *still* have Paypal alternatives, such as NOCHEX [nochex.com] and PPPay [pppay.com]. Are you seriously telling me there are no slightly smaller, less-evil alternatives to Paypal in the US?
  • by skold ( 912410 ) on Sunday September 04, 2005 @04:41AM (#13475408)
    Aside from a PayPal logo on the front, the PayPal Visa card has nothing to do with PayPal. It's issued by Providian, and they manage the card according to their own rules.
  • by Vellmont ( 569020 ) on Sunday September 04, 2005 @04:45AM (#13475418) Homepage

    Of course no one seems to have thought about WHY paypal canceled the account. I mean, they're an "evil corporation" cause SA says so thus they must have done it for kicks.


    Check out some of the other posts. I've heard terrible stories about Paypal screwing people over for years. With the number of stories I've heard (and the consistency) I think Paypal is a very poor company that seems to shut down accounts on a whim and rarely explain why. I'm sure they have a lot of problems with money laundering, etc, but there's just too many stories of innocent people getting burned by Paypal for there not to be something wrong with paypal itself. This isn't just an "evil corporation" story, it's a company with a long long track record of unscrupulous behaviour.
  • by Anonymous Coward on Sunday September 04, 2005 @05:14AM (#13475499)
    Not entirely true. Something Awful's been using a real payment processing system for some time now since Paypal closed their account previously used for forums registrations and the like. So I suspect this is a new account.
  • Re:No good deed... (Score:2, Informative)

    by Wolfkin ( 17910 ) on Sunday September 04, 2005 @05:30AM (#13475541) Homepage
    Still there. There's also Pecunix, NetPay, GoldMoney, eBullion, webmoney, and a whole bunch more.
  • by Haeleth ( 414428 ) on Sunday September 04, 2005 @06:14AM (#13475636) Journal
    I pay tips with cash whenever possible, so there's no way for the management to track it.

    God YES. If you want the money to go to the staff who you're trying to reward with your tip, you give them cash, and do it quietly. If you just want to line their managers' pockets even further, go ahead and use your card.

    See this [dol.gov] if you don't believe me. Federal minimum wage is about $5/hr, except for employees who receive tips, in which case the employer can cut the "direct" wage as low as two fucking dollars an hour. They have to actually pay them the $5/hour, of course, but by making $3 of each $5 come out of tips, they basically make sure that the employee isn't actually going to benefit at all from your generosity - unless you're an unusually high tipper, they're just going to get $5/hr whether you tip them or not.

    Nice one, government. Way to motivate low earners.
  • by darksith69 ( 812076 ) on Sunday September 04, 2005 @06:45AM (#13475719)
    Why keep everything secret, and keep the account frozen??

    Because they can invest that money. When the account is frozen you have to do something to actually unfreeze it, like you said, calling a lawyer to send a nice letter to them.

    The point is, if you keep money in paypal it doesn't do anything. It's like keeping money in a bank, you are losing money due to inflation. OTOH, even if you invest in the lowest risk fund of your bank, you will get about 1% income, and you can cancel the investment in less than a week. Actually, my current bank returns 89% of the money immediately and the rest in the next two days.

    So Paypal is being the middle man: they invest YOUR money, and when you want it back, they give you the money back, but they get to keep the interests it has generated. As other posters are saying, for big quantities of people, the amount of money can sum a lot, and 1% of "a lot" with practically no risk is a nice bonus. Wouldn't you do the same if you had the chance?

  • by leprkan ( 641220 ) on Sunday September 04, 2005 @07:21AM (#13475853)
    you must be joking. If you even went to www.somethingawful.com and read LowTax's thoughts on Katrina, you would not question this being a scam. And you obviously don't know SA's previous record of donating (raised over $22K to buy plated armor for soilders in Iraq, rasied over $6K to buy kids in need christmas presents. And that's just to name two). I really am disgusted at you considering this a possibility.
  • by Anonymous Coward on Sunday September 04, 2005 @07:50AM (#13475962)
    Paypals: 1-866-648-5843
  • by batkiwi ( 137781 ) on Sunday September 04, 2005 @08:41AM (#13476185)
    Lowtax was giving away SA merchandise randomly to people who donated. He has hundreds, if not thousands, of shirts/etc in his basement he's never sold, so he wanted addresses added to the donations so that he could ship, at his own cost, at least a bumper sticker or t-shirt to everyone donating.
  • by PortWineBoy ( 587071 ) on Sunday September 04, 2005 @09:22AM (#13476401)
    I've worked in many restaraunts and I've never had a manager steal my tips, credit card or otherwise. I made quite a bit of money waiting tables even @ $2/hr + tips. I don't this this rate of pay is really an issue. I don't understand how you belive waitstaff makes only $5/hr with tips? Are you using some sort of anecdotal information for this? A waiters tips are his tips. There is no offset with the hourly wage, nor in any place I know of or have worked in does management take most of your tips away and give you back $3/hr. Waiters are not low wage earners. Yea the benefits are usually nonexistant and the job certainly isn't any dream vacation, but I certainly made more than $5/hr.
  • by chialea ( 8009 ) <chialea&gmail,com> on Sunday September 04, 2005 @09:26AM (#13476431) Homepage
    Greyhound tickets work better if the buses are working -- both busses and planes pulled out of NO several days before the hurricane. This is a lot of why there were so many tourists stranded -- they simply didn't have any way to leave. (Many hotels then kicked them out in the streets for "liability reasons".)

    Interestingly, not everyone knew how severe the hurricane was supposed to be. News travels slowly when you don't have a TV or net.

    People stayed for a variety of reasons, but mostly because they had no choice/car. Interestingly, if you walk, the freeways (at least on one side, I'm not sure about the other) are one of the worst places to be, because they are flooded early and often.

    Lea
  • by tolan-b ( 230077 ) on Sunday September 04, 2005 @10:58AM (#13476919)
    That's complete crap. People pay tips in europe, the difference is that if the waiter doesn't get good tips he still gets to eat, if he does then he gets a bonus.

    If someone gives bad service they get complaints and they get fired.
  • Update (Score:4, Informative)

    by Nehle ( 784297 ) on Sunday September 04, 2005 @11:51AM (#13477228) Journal
    http://forums.somethingawful.com/ [somethingawful.com]
    Paypal / Donation / Server Update 9/04/2005 - 10:07 AM - Rich "Lowtax" Kyanka

    I finally got ahold of a Paypal customer support person this morning (when I called last night, their automated "screw off" system told me they were closed for the night). I explained everything to her and she asked me to fax in a bunch of junk like my driver's license, statement from my bank account, statement from my credit card account, and various other things. I guess I should be lucky they didn't ask for DNA and sperm samples as well.

    I told them the only reason, and I repeat ONLY REASON I was using their service was to raise relief funds, and the representative made a comment along the lines of "well you can see how it's counter-productive to get this resolved when you're writing 'Paypal sucks' on your website." Gee lady, maybe the whole issue could've been resolved beforehand if your company actually gave a crap about their customers and made even the tiniest bit of effort to resolve things without immediately hitting the "off" switch like that one jerk from "Ghostbusters?" The representative herself was nice, and I don't have a problem with the people working there; I do, however, have a problem with their automated systems making arbitrary decisions without providing customers ANY time to rectify the situation without risking downtime / account closure. You don't run a business treating all your customers like criminals and making them prove they aren't.

    I'll be faxing in that information right now, so the money you donated to the Paypal fund WILL get to the Red Cross, but it all depends on the speed of the world-famous Paypal Complaint Appeals Department or whatever the hell they're called.

    On 9/4/05, Rokas Kirvelis norgin@gmail.com wrote:

    Instead of writing a fucking essay about PayPal how about you FUCKING CONTACT CUSTOMER SUPPORT like it told you to do? I wouldn't be fucking surprised if you photoshopped those pics (because text is so hard to photoshop) and took the money. You're not even doing anything to get the money back.

    Yeah, okay. Thanks again for the support, Internet.

    Still no ETA on when the servers and SA will be up again. No idea when we'll be able to get the servers and move them to another hosting facility either. Running a small business is awesome because, not only are you in charge of making sure a bunch of people get service and employees get paid, but you're constantly responsible for everything and you can't stop worrying about what will happen. At least your standard 9-to-5 job lets you leave work at your office when your shift is over; a small business is a boulder you carry around on your shoulders every hour of every day. Some days the boulder crushes you, and this past week has been a series of those days.

    My apologies to everybody.
  • by Anonymous Coward on Sunday September 04, 2005 @01:19PM (#13477689)
    It's pretty clear that PayPal is practicing embezzlement and racketeering. This is rising to a criminal level of behavior as victims of Katrina are dying with every hour lost who could have been saved if money donations only arrived in a timely fashion. civil suits already exist against PayPal [paypalsucks.com] because of bad acts committed by PayPal. Many of these acts border on criminal acts so this is hardly surprising this around.

    Suggestions for next steps:

    1. Contact the California Dept Financial Institutions [ca.gov] and tell them one of their licensees is committing financial embezzlement and racketeering under the guise of operating under their granted license
    2. Contact the Santa Clara Country District Attorney's office [santaclara-da.org] and tell them a Santa Clara Country corporation is committing embezzlement and racketeering with charitable donations for Katrina victims.
    3. Contact SF Bay Area news media (SJ Mercury News [bayarea.com], SF Chronicle/Examiner [sfgate.com], KRON 4 TV [kron.com], KTVU 2 TV [ktvu.com], KPIX 5 TV [kpix.com], KGO 7 TV [go.com]) and tell them a Santa Clara Country corporation is committing embezzlement and racketeering with charitable donations for Katrina victims. Send E-mail and call them - hearing the story from multiple channels adds credibility.
    4. Collect documentation of previous malfeasance (e.g. PalPay Sucks! [paypalsucks.com]) and broadcast it as widely as possible. That especially includes personal networks: make it a point to tell 5 friends and 5 strangers about PayPal's unacceptable behavior in the next 24 hours. Ask those you tell to investigate the truth themselves and tell 10 people they know also. Lather. Rinse. Repeat as necessary.

    This ongoing and repeated abuse must stop now!

  • by GoRK ( 10018 ) on Monday September 05, 2005 @03:02AM (#13481658) Homepage Journal
    Follow up commentary:

    Looks like I was right. Lowtax completely went on a tyraid about it and as a result PayPal didn't want to work with him. The CSR even asked him why he would put up a whole article about how paypal sucks on the front page of his site and then expect them to help him. Paypal does suck in a lot of cases; Lowtax is correct in this case; Paypal ought to held to the same standards as banks and other financial institutions, etc. but as of right now they aren't a bank and when they have $30K of your money, you don't kick them in the balls and expect them to do everything you say.

    What's worse is that the first reason the account was shut down is because of his own idiotic users. He had the users submit payments for merchandise in order to get a shipping address to send them free stuff. While this is a good idea for a fundraiser, his users started sending demands for proof of shipping via paypal (probably thinking how funny it would be to do that sort of thing) and hosed the whole damn thing.

    You know these same SA users even went around to other forums who were running donation drives and insulted their efforts claiming that the "SomethingAwful donation drive is going to [crush your drive]" and the like. Great fucking job, guys.

    What is EVEN worse is that people gave money to SA to be donated to the Red Cross, then when it seemed that PayPal was willing to send the money into their United Way fund, Lowtax immediately jumped at the chance to misappropriate $30,000 of other peoples' money. Another fucking brilliant move.

    Now I am applauding PayPal for their decision and their willingness to refund the money. I can only hope that the donors will immediately spin it back out to a charity or relief organization through a proper avenue, but honestly I suspect that many will not.

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