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PayPal Freezes Support Account For Bradley Manning

An anonymous reader writes "The online payment provider PayPal has frozen the account of Courage to Resist, which in collaboration with the Bradley Manning Support Network is currently raising funds in support of US Army Pfc. Bradley Manning. 'We've been in discussions with PayPal for weeks, and by their own admission there's no legal obligation for them to close down our account,' noted Loraine Reitman of the Bradley Manning Support Network (Support Network). 'This was an internal policy decision by PayPal. ... They said they would not unrestrict our account unless we authorized PayPal to withdraw funds from our organization's checking account by default. While there may be no legal obligation to provide services, there is an ethical obligation. By shutting out legitimate nonprofit activity, PayPal shows itself to be morally bankrupt.'"

33 of 580 comments (clear)

  1. Wow by Charliemopps · · Score: 4, Insightful

    There really is no excuse for this at all. We're all entitled to a fair trial and the best legal defense available to us. This signifies that Paypal doesn't support the constitution or the rule of law. Shameful.

    1. Re:Wow by memnock · · Score: 4, Insightful

      Paypal is a private entity. Unfortunately, it's not doing anything illegal or unconstitutional, as far as I can tell, by choosing not to do business with someone. What Paypal should do though is return the funds and those donors decide what to do with their own money, not choose for them.

      As an aside, I've never and never will, use Paypal for anything. I can send a check to a PO BOX. That's not secure, but I don't think of Paypal as secure either. If I want to be anonymous, I can send a money order. Stop giving Paypal business is my opinion.

    2. Re:Wow by causality · · Score: 4, Insightful

      There really is no excuse for this at all. We're all entitled to a fair trial and the best legal defense available to us. This signifies that Paypal doesn't support the constitution or the rule of law. Shameful.

       

      Paypal is a private entity. Unfortunately, it's not doing anything illegal or unconstitutional, as far as I can tell, by choosing not to do business with someone.

      Too many arguments go like this. I believe it misses the real point being made. It was already well-established by the summary that Paypal has no legal obligation here.

      If you truly support the Constitution and principles like rule of law and due process, then you adhere to them even if the government is not going to use force to make you adhere to them. Anywhere that there is a choice in the matter, you get to see what people really believe in. Paypal wouldn't even provide a copy of the relevant portions of their policy.

      The funny thing is the implied hypocrisy. If any of the decision-makers at Paypal did find themselves in violation of the law, they'd never surrender their rights to due process. They'd want to know which law they are being accused of having broken. They'd want the prosecution to have to prove every claim it makes. But in their own little kingdom where they both make and enforce the rules, they want the ability to arbitrarily shut anyone down without ever having to demonstrate that they violeted the rules or even citing which rules would apply.

      In my opinion, they're assholes and if you do business with them, it is because you want assholes to prosper. Like you, I have never onced used Paypal and because of behavior like this, I never will. This is not remotely the first example of pathological behavior from this company.

      --
      It is a miracle that curiosity survives formal education. - Einstein
    3. Re:Wow by Nidi62 · · Score: 5, Insightful

      The summary says why they did it. Paypal asks that the account be set up so that Paypal can withdraw by default. They don't have an account set up for that, so they aren't holding to their part of the agreement. If they don't like those terms, they don't have to to business with Paypal.

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    4. Re:Wow by Enderandrew · · Score: 5, Informative

      I work for PayPal, but don't have any knowledge of why this decision was made first hand.

      I can say that in many past cases where a non-profit's funds were frozen, and everyone makes a stink about how evil PayPal is, it comes down to the fact that after the Patriot Act, PayPal is obligated by law to make sure non-profits file extra paperwork to prove their status. I think Xorg's funds were frozen for a while and everyone interpreted as PayPal hating open source, when in reality they just forgot to file paperwork.

      This certainly could be PayPal refusing to do business with anyone associated with WikiLeaks after Anonymous tried a DDoS attack on api.paypal.com, but it could also be another technicality.

      --
      http://blindscribblings.com - Tasty pop-culture in conceptual fashion.
    5. Re:Wow by Schadrach · · Score: 4, Insightful

      Big distinction -- they took the money from donators, and are refusing to pass it over the those whose account it was supplied to.

      PayPal can certainly refuse to deal further business with this fund, that is their right. But they should be required to either release the funds collected to the legal fund, or refund it to all donators, such that said funds can be donated through alternative means.

    6. Re:Wow by AK+Marc · · Score: 4, Insightful

      The question is not whether PayPal has the right to do this. They most assuredly do.

      I disagree with that. They are a bank. Whether they are currently regulated as such in the US is irrelevant to the question of whether they are one. As such, they do not have the "right" to do this. That the government has chosen to declare the bank to be not-a-bank because of bribes received is irrelevant to whether they are a bank and whether they have the right to do it. Having the power to do it doesn't mean they have the right to.

  2. Re:Who? by WillyWanker · · Score: 5, Insightful

    I think you forgot the part about "innocent until proven guilty"? How about a fair trial first (which is what he needs the money for), THEN you can condemn him.

  3. I am shocked by mewsenews · · Score: 5, Funny

    PayPal shows itself to be morally bankrupt

    But not financially bankrupt!! Cha-ching!!

  4. Re:Again? by nospam007 · · Score: 5, Informative

    They are a bank, incorporated in Luxembourg.
    Complaints are to go to:
    http://www.cssf.lu/en/

  5. Re:Who? by Ant+P. · · Score: 4, Funny

    This is a Milgram Experiment, and you are the test subject. You pretty much failed.

  6. Wow, the sky? Just checked - STILL Blue!!! by pla · · Score: 4, Insightful

    I cannot imagine why any sane person or organization would use PayPal as a bank-like entity after their many, many, MANY abuses of their "not a bank" status.

    Seriously... It surprises more to hear about people successfully getting their money out, than stories like the FP.

    Really simple, folks - Just stop using them. Period. They have the right not to serve us, and we have the right not to use them. Exercise that right, and put these bastards permanently in the red ASAP.

  7. Two sides to the story? by Dachannien · · Score: 4, Insightful

    So far, the only nominally credible journalistic outlet reporting on this story (and indexed so far by teh Google) is Huffington Post, which appears to be reporting solely based upon the press release.

    This would be a great opportunity for some actual journalism - to find out why Paypal actually suspended access, what the reason behind the checking account access requirement is, whether or not there's government pressure at work here, and whether or not there's something that Courage to Resist knows about but isn't saying in their press release.

    Or, we could just blindly accept everything Courage to Resist says as the unvarnished truth.

    1. Re:Two sides to the story? by blair1q · · Score: 5, Informative

      Or maybe a little googling:

      http://techcrunch.com/2011/02/24/paypal-on-cutting-off-courage-to-resist-this-has-nothing-to-do-with-wikileaks/

      Summary: CTR set their account up incorrectly. PayPal asked them to fix it. CTR refused and lied about the situation to the media.

      Since dirt travels faster than explanation, PayPal will always look like dirt to someone who's encountered this botched story.

    2. Re:Two sides to the story? by blair1q · · Score: 4, Informative

      Lied.

      That policy does not apply only to 501(c)(3)'s. They were emphasizing that it also applies to them.

      PayPal needs you to have a bank account for at least two reasons: 1. identification; the presumption being if a bank believes you are who you are, then you are; for what that's worth. 2. to fund your account automatically if you make a payment from your PayPal account in excess of your PayPal balance; there's actually a whole list of things PayPal can try in order to cover your payment, so having an empty bank account isn't automatically going to stop the transaction.

      CTR is full of crap, is ladling it out generously, and a whole slew of slashdotters are eating it with relish and ketchup on top.

    3. Re:Two sides to the story? by Ixokai · · Score: 4, Informative

      Did... you read the article you said you read?

      It says nothing about PayPal demanding "unrestricted access" to a bank account. It further goes on to state that they are _not_ seeking the ability to unilaterally withdraw money from the bank account.

      PayPal simply requires that all non-profit accounts be linked to a bank account-- among other things you have to go through too, to confirm your non-profit status. In return for this sort of thing, PayPal charges less on the transaction fees.

      Its actually a pretty clearly spelled out policy... non-profit accounts have to be linked to a bank account. That _doesn't_ mean you have to grant PayPal the ability to roam around the bank account and do anything they want to.

  8. Nothing to do with Bradley Manning by MickyTheIdiot · · Score: 5, Informative

    I work for a non-profit that does nothing remotely controversial and we have had to deal with the exact same issue. PayPal forces EVERYONE to withdraw from a bank account by default. They make no distinction about who they are dealing with and they care less about non-profit status. Because they are a quazi-monopoly on ebay payment they pretty much force people to do what they want if you want to buy or sell on ebay.

    If you want to be outraged, be outraged that the they use their monopoly status to force their fingers into bank accounts, not that the made some political move they actually didn't make.

  9. Re:You don't understand the Constitution by morgauxo · · Score: 5, Insightful

    We need more traitors like that. People should not be allowed to kill indiscriminately regardless of who they are or what their position is. Have you actually read any of the documents he leaked? Soldiers were gunning down whole families because there may possibly have been some terrorists nearby. If our country is going to be doing that then "We the People" need to put an end to it and we can't do that if we don't know what is going on. Afterall, "We the People" are the source of the government in the US, right? If not then worse traitors than Bradly Manning have already done their damage and the wrong traitor is on trial. How can we "form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity" when the crooks and murderers in charge may hide from us everything important that is going on?

  10. Re:Commentary by MozeeToby · · Score: 5, Insightful

    Not at all. As someone who holds a US security clearance I am absolutely against what he is accused of doing; it was dangerous, irresponsible, and against an oath he took when he agreed to accept his clearance level. At the same time, I have very little faith in a government appointed defense attorney providing the best defense available, which I feel such a high profile, political case deserves. Considering the man has been in solitary confinement for nearly 6 months now without so much as a peep out of anyone representing him, I'd say my lack of faith is well founded. Even if you assume that the man is guilty (which is always a dangerous and stupid thing to do) he deserves the right to defend himself in a court of law and other people have the right to raise money for that defense.

  11. Re:"Land of the free" by Gorimek · · Score: 4, Insightful

    That has been rephrased slightly to keep up with the times. It is now Land of the fee.

    We apologize for no inconvenience!

  12. Re:Yeah yeah by fuzzyfuzzyfungus · · Score: 5, Insightful

    Hilariously, Paypal was actually started by a libertarian as some sort of "resist the man and his fiat currency's dead hand on trade." kind of thing. Now it voluntarily licks the boots of those who would suppress the entirely legal efforts of an advocacy group to secure a man a fair trial(rather than the present detention-without-trial-of-indefinite-length...)

    All hail the private sector, defender of liberty!

  13. Re:Can they be sued? by yurtinus · · Score: 5, Funny

    It's no problem, we'll just set up a legal fund and accept donations via Paypal

    --
    +1 Disagree
  14. easy solution by MooseTick · · Score: 4, Informative

    "They said they would not unrestrict our account unless we authorized PayPal to withdraw funds from our organization's checking account by default"

    Set up an account that only has PayPal deposits in it. Transfer that money daily to another account they do not have access to. At the wost, paypal can only take back the money they have deposited for that day. Problem solved and everyone's happy.

  15. Re:Mirrored at Crpytome by blair1q · · Score: 5, Informative

    "They opted to apply an exceptional hurdle for us to clear in order to continue as a customer,

    Apparently, there's nothing exceptional about it; they require every account holder to link their account to a real bank account and permit paypal to access it:

    http://techcrunch.com/2011/02/24/paypal-on-cutting-off-courage-to-resist-this-has-nothing-to-do-with-wikileaks/

  16. Re:Yeah yeah by blair1q · · Score: 4, Insightful

    Libertarians, unsurprisingly, respond to offers of cash for their companies the same way that regular Republicans do.

  17. Re:Yeah yeah by causality · · Score: 4, Interesting

    Hilariously, Paypal was actually started by a libertarian as some sort of "resist the man and his fiat currency's dead hand on trade." kind of thing. Now it voluntarily licks the boots of those who would suppress the entirely legal efforts of an advocacy group to secure a man a fair trial(rather than the present detention-without-trial-of-indefinite-length...)

    All hail the private sector, defender of liberty!

    Far as I can tell Paypal is just another pro-Establishment tool despite any intentions of its founder. Wikileaks has been accused of no crime in any jurisdiction, but they irritate a lot of powerful people. So Paypal interferes with the effort to support Wikileaks by using Paypal to make donations. Manning is currently facing some serious accusations; he is accused of leaking information that ended up in Wikileaks which again pisses off a lot of powerful people. So Paypal freezes the account that would have been used to fund his legal defense.

    This is opinionated speculation only, but I really wonder what kind of favors or kickbacks Paypal is going to receive in the future. They have faithfully served their masters it would seem, and that's obviously not its users and customers. Fascism is the merging of corporate and government power. Corporations doing what is convenient for the government and acting against people government doesn't like, in the absence of any actual requirement to do so, is a step in that direction for certain.

    Even those who are guilty as sin deserve a fair trial. So long as their fair trials are funded voluntarily there is nothing that needs to be stopped.

    --
    It is a miracle that curiosity survives formal education. - Einstein
  18. Re:Yeah yeah by SimplyGeek · · Score: 4, Interesting

    You have no clue what happend with the original company as it was founded. Criminals were using Paypal to launder money. As a result, the Feds started putting serious pressure on the company "or else". It was either that or close up shop so they had to play ball. I admire what they tried to do. We need competing currencies and ways to exchange money without the Feds knowing about it. There's no way the IRS would ever let that happen.

  19. Re:Yeah yeah by Grishnakh · · Score: 5, Interesting

    Far as I can tell Paypal is just another pro-Establishment tool despite any intentions of its founder.

    Founder's intentions mean squat with any company after it's been bought out by someone else.

    Just look at Ebay: back in the late 90s when it was new, it was a great place for regular people to sell off their old crap, like a big internet garage sale. It had low fees, and few problems aside from scammers (a problem any time you deal with private sellers). Now it's been taken public, has a CEO, and is mired in greed and unethical behavior. Fees are ridiculously high, small-time sellers are screwed over in favor of "power sellers" who sell tons of Chinese-made junk, and scamming is still a giant problem because the company (even though it has far more resources than ever) refuses to do anything about it.

    This is opinionated speculation only, but I really wonder what kind of favors or kickbacks Paypal is going to receive in the future.

    My theory is that their purpose in scratching the government's back is to keep the government off their back when anyone complains about their actions, which would be illegal if they were chartered as an actual bank. So they get to act like a bank, talk like a bank, quack like a bank, but when they prefer to do something that banks aren't allowed to do (like freeze accounts arbitrarily), they can say "we're not a bank!" and get away with it because the government doesn't want to bother them after their help with "annoying" issues like this.

  20. Re:Again? by Ecuador · · Score: 4, Insightful

    That is the biggest problem. They claim they are not a bank so as not to be regulated as a bank in the US, so they are allowed to screw customers by freezing funds at their discretion, not giving enough fraud protection etc.
    What is amazing though is this: I was reading an article on consumerist (http://consumerist.com/2010/05/keep-paypal-from-using-the-default-atm-debit-setting-to-save-on-bank-fees.html) and someone from Paypal got offended because they were called an "unregulated bank" by the author. So they posted this little tidbit:

    we're not regulated as a bank in the U.S. (we don't hold deposits or issue credit)

    Whoa, there, cowboy!
    First of all, what do you call the funds in the Paypal account? IMHO the only reason they are not called a "deposit" is because Paypal can freeze it at will!
    Secondly, if they are not issuing credit, WTF is "Bill Me Later"??? Just because they don't CALL it credit, it doesn't mean it is not!

    --
    Violence is the last refuge of the incompetent. Polar Scope Align for iOS
  21. Re:Again? by AK+Marc · · Score: 4, Insightful

    They are a bank. They are just what happens when you don't regulate banks.

  22. Re:Wow, the sky? Just checked - STILL Blue!!! by tlhIngan · · Score: 4, Interesting

    I cannot imagine why any sane person or organization would use PayPal as a bank-like entity after their many, many, MANY abuses of their "not a bank" status.

    Seriously... It surprises more to hear about people successfully getting their money out, than stories like the FP.

    Really simple, folks - Just stop using them. Period. They have the right not to serve us, and we have the right not to use them. Exercise that right, and put these bastards permanently in the red ASAP.

    So how are you supposed to accept credit cards then?

    No one else lets you accept credit cards from random strangers without having to follow some really weird and arcane rules to satisfy the merchant account rules. Google Checkout doesn't (it requires you be a store), not sure about Amazon Payments, but I think it's similar as well.

    Face it - the only real reason people use Paypal is because it's pretty much the only way Joe Average can transfer some money to John Smith via credit card. Sure you can go to the post office and get a money order, mail it off, hope it arrives a week later, ... rigamarole, but that seems idiotic in this day and age of fast and easy e-commerce.

    And the other options aren't much better - western union? egold?

    Until someone manages to find a way to allow two random people on the internet send random amounts of money via credit card, Paypal's it. You want to put them out of business? Set it up in Paypal's niche.

    It's also why eBay bought Paypal - because they're very synergistic.

    And here's another question - why did they use Paypal? Why couldn't they set up their own merchant account? Or use Google Checkout? Or Amazon Payments? Most likely, either the fees are higher (Paypal may charge a lot, but credit card processors aren't cheap, either), or they didn't qualify. If they didn't qualify, Paypal ends up being the only way to accept credit cards.

    So why are people falling into the same trap again and again? Google Checkout and Amazon Payments should also work, as does a merchant account...

  23. Re:Again? by Entropius · · Score: 4, Insightful

    Patriotic?

    Patriotism is standing up for the ideal that any person accused of a crime deserves a vigorous defense.

  24. Re:Again? by Entropius · · Score: 4, Insightful

    Does it include the waiver of the right to presumption of innocence and the right to be treated humanely when in captivity?