reply to post by Jean Paul Zodeaux
Actually, Western Union will freeze funds if directed to do so by authorities. The difference is that it is both difficult to get the paperwork ready
for the freeze before the money is transferred, and there is no way (usually, unless the sender is stupid) to verify why the money is being wired.
With PayPal, their buyer protection logs the item being sold, the description, and the amount being transferred.
All financial records, at least in the US, are available to Federal authorities for review. With electronic funds transfer, funds can be transferred
across the globe in seconds... but they are actually transferred in days to allow for review of records. Western Union, because they make the
transfers intra-company, do not have this waiting period for potential review.
As to the subpoena, it would require a subpoena in order for PayPal to be allowed to divulge any details of the investigation. At that point, it is
still unlikely the details would be released to anyone except the court, but they could be released. Without a subpoena, PayPal is legally prohibited
from saying or releasing anything.
The people who answer the phone probably have no idea what is actually happening; in all likelihood, there is a message on their screen to the effect
of "Federal investigation. No explanations to customer allowed." Only the corporate managers would be directly involved, and I don't think any of
them are that stupid. Greedy, merciless, Godless thieves, maybe, but not stupid.
I'm not saying this is fact; it is my reasoned conclusion. But the facts of the case do indicate that something is seriously amiss. Without legal
recourse in the form of a higher authority, PayPal could stand to lose an awful lot if a subpoena were to be issued over this, so why suggest it? I
realize very few would take a $300 case that far, but why tempt fate?
I stand by my conclusion: either there is a high-level investigation occurring or PayPal is committing corporate suicide.