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Paypal Freezes Website's Relief Funds

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posted on Sep, 5 2005 @ 02:11 PM
Paypal has taken Money that does not belong to them, they froze the Money of a site that was collecting money for relief funds for hard hit areas of Hurricane Katrina.
This brilliant wheeze will delay payments to poor people from hurricane Katrina. The good folks at Something Awful, themselves victims of the hurricane, decided to put their mouths where the money is and set up an account to take donations for the Red Cross.

Something Awful has a history of helping out, and has raised tens of thousands of dollars in the name of charities before, and will probably do so again.

This time, it may have made a mistake by choosing Paypal. SA received $20,000 in less than half a day, and then Paypal decided to shut the fund down. What's the problem? "We have received more than one report of suspicious behavior from your buyers."

Please visit the link provided for the complete story.

This is a big problem with Paypal, not only has it happened this 1 time, it has happened many many other times. I had had my share of problems with this company in the past and don't understand why people still suggest them.

There are alot of sites that point out problems with Paypal similar to this one, and in most cases never gets resolved.

Related News Links:

[edit on 9-9-2005 by asala]

posted on Sep, 5 2005 @ 02:48 PM
Is SomethingAwful down for you too?

posted on Sep, 5 2005 @ 02:56 PM
Yes it is, I am not sure why.. maybe google cache has it..

Here it is.

[edit on 9/5/2005 by ThichHeaded]

posted on Sep, 5 2005 @ 02:57 PM
Can't say paypal freezing people's accounts is news, although maybe this occurance will wake up more people to the internet's most profitable shell game.

-koji K.

posted on Sep, 5 2005 @ 03:01 PM
I found out why it is down.

Because the site is hosted in New Orleans, it went down several days after Hurricane Katrina devastated that city. The company had managed to keep it up for a few days, but it eventually came down. Backup hosting was arranged with Dreamhost for a temporary frontpage. According to Lowtax, the site "will be back again within this week". The webmasters are trying to move its servers to a permanent hosting facility in Kansas City, Missouri. The site is "semi-functional" and Lowtax was offering to give some merchandise to anyone who gives more than 10 USD to the Red Cross Hurricane Relief PayPal link on the website. Unfortunately, after raising 20,000 USD in less than a day, Paypal froze the account because they had received "more than one report of suspicious behavior" from Lowtax's "buyers". Lowtax has expressed fury that PayPal has now taken away all of the money, confusion at who his "buyers" were, and frustration at the fact that PayPal has made it impossible for him to fix the problem. At last update, Lowtax had requested that PayPal refund all the money raised through the site, asking instead that people donate to the Red Cross directly.

posted on Sep, 5 2005 @ 07:34 PM

A contributor voting NO on your submission: (submission) (abuse) Paypal Freezes Website's Relief Funds has indicated they did so because they feel your primary source lacks credibility. Perhaps you should locate another source and edit your submission.

Who did this??
This place is credible, they are an electronics news site.. Ironicaly Paypal = Electronics.. Ahhh opps, or not.
Interesting how this is no source. Considering I see alot of credible things from this site on ATS.

So where is the no credibity??

[edit on 9/5/2005 by ThichHeaded]

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