PayPal Turns Bradley Manning Defense Account Back On; Claims It Was A Paperwork Problem

from the that's-not-what-they-said-originally dept

PayPal's decision to cut off the account of an organization that was collecting funds to help with Bradley Manning's defense got a lot of attention -- so much that PayPal came out with a blog post explaining that it was just a paperwork problem on the part of the organization, Courage to Resist. Because of this, they've reinstated the account:
We recently placed a temporary limitation of the Courage to Resist organizationís PayPal account as they had not complied to our stated policy requiring non profits to associate a bank account with their PayPal account (for the vast majority of non-profits, this is not an issue).

In a press release issued today, the Courage to Resist organization claimed that their resistance to follow our policy is because PayPal sought to withdraw funds from their checking account.  To be clear: PayPal cannot take such action without the authorization of an account holder, nor does it ever take such unauthorized actions.

Upon review, and as part of our normal business procedures, we have decided to lift the temporary restriction placed on their account because we have sufficient information to meet our statutory 'Know Your Customer' obligations. The Courage to Resist PayPal account is now fully operational.
While it's good that they've done this, not all of this makes sense. Courage to Resist claims that they repeatedly asked for an explanation and for the specific policy that they had violated. If it was just a matter of associating an account with a bank account, why didn't PayPal just tell them that in the first place?

Filed Under: bradley manning, paypal
Companies: paypal


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  1. identicon
    Anonymous Coward, 25 Feb 2011 @ 11:39pm

    "To be clear: PayPal cannot take such action without the authorization of an account holder, nor does it ever take such unauthorized actions. "

    Yes, well paypal makes authorization to remove funds from the account a part of the agreement so technically they are not lying.

    However they DO take funds out of people's accounts and generally a good deal more than any amount that may or may not have been in question.

    A quick google on paypal sucks will get you all the stories you can stand.

    The market REALLY needs a replacement for paypal, preferably one that offers an escrow service too.

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