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PayPal refunds $27,695.41 raised for Red Cross

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  • PayPal refunds $27,695.41 raised for Red Cross

    Katrina Relief Fund account frozen by PayPal

    Posted 01:46 - 5 September 2005 - by Tim Smalley

    It seems that PayPal is getting in the way of SomethingAwful.com's efforts to raise some money to help with relief of the devastation in New Orleans. At the same time, PayPal are taking a 2.35% profit from every donation that was made to site owner Rich Kyanka's relief efforts.

    He had helped to raise over $30,000 in a little over 9 hours thanks to generous forum member donations. He'd chosen to use a PayPal account to collect the money, as he required a donor's address so that he could send free merchandise at his own expense as appreciation for their generosity.

    Something Awful's servers are located in New Orleans and they are "either underwater or strapped to the roof of a stolen vehicle that is also underwater", according to Kyanka. Thus, he is unable to use Something Awful's own credit card system for donations to help with the relief.

    Here lies the weakest link in Kyanka's efforts to help the devastation - PayPal froze his donor account on the grounds that "[PayPal] have received more than one report of suspicious behaviour from your buyers." If you consider the fact that he isn't selling anything and was asked to provide proof of shipping information to the parties reporting suspicious behaviour.

    Conveniently, there's a table in his PayPal account page that lists the scammed parties - the list didn't contain a single report of a scam going on. Yet it stated that he'd need to submit an explanation for each of the zero aggrieved parties.

    Since then Kyanka has spoken to a PayPal representative and requested that the funds were taken from his account and sent to the Red Cross - the charity behind the bulk of the Katrina relief efforts. However, the representative stated that there was a problem in that all donations to PayPal go through United Way.

    Being careful about the donated money, Kyanka gave United Way the once over, returning some rather horrifying results.

    A former Chief Executive of United Way, Oral Suer, pled guilty to fraud in March last year. The damage caused by Suer was said to be "incalculable" according to the charity's current CEO, Charles Anderson. We are not the slightest bit surprised the Kyanka doesn't want his readers donations to be sent to a charity that is a "corrupt, bloated overhead organisation".

    Indeed, all that Kyanka wanted to do was help New Orleans in a time of need, raising over $30,000 in the process. He's requested that PayPal refund each and every donor the full amount. Hopefully this will happen, as it is pretty sick to think that a company is making a profit out of generous donors trying to help in a time of desperate need.

    http://www.somethingawful.com/
    http://www.bit-tech.net/news/2005/09...gawful_paypal/
    Derty Andrew - Basically Rex Harrison in an infant's body.

  • #2
    paypal is straight up bullshit

    Comment


    • #3
      im a regular at somethingawful.com and im pissed that paypal is keeping the $3000 they are making off this. that is bullshit they freeze the account for suspicious activity, but it kind of makes sense with 30k goin into an account in less than 9 hours from a ton of people. i was proud as an american seeing people from all over the world on a website band together to help each other. somethingawful.com has a wonderful following as they have raised $22k once for armor plating for soldiers in iraq and again raised 12k so a somethingawful.com member could have a new kidney when his failed and was in critical condidtion in the hospital. how paypal couldnt just send the money to the red cross is beyond me. what they are doing in this case is stealing $3000 from hurricane victims basically and for that i will never use paypal and their communist service again. FUCK YOU PAYPAL!
      Last edited by Skinny B; 09-06-2005, 07:53 PM.
      Super Bowl XLI Champions

      Indianapolis Colts

      XBox Live Tag:
      GlazedJasonMask

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      • #4
        ^ I agree. I lost $75 to those money leeching bastard for no reason a while back.
        My other aliases:
        The West is Back
        Masai
        justp1ayin
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        • #5
          im stealing a quote from lowtax on somethingawful.com....i dont understand this either

          Every single cent in every single Paypal account is earning their company ungodly amounts of interest in their central bank account. They offer users credit cards and the chance to put your money into interest-generating accounts. So exactly why are they not under banking and FDIC rules again?
          Super Bowl XLI Champions

          Indianapolis Colts

          XBox Live Tag:
          GlazedJasonMask

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          • #6
            Originally posted by On The Shelf
            ^ I agree. I lost $75 to those money leeching bastard for no reason a while back.
            i lost like 150$ couple days ago due to extortional dispute and i loose money every time i get money.. MoneyBookers.com... make that switch...

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