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PayPal Freezes "Immoral" and "Suspicious" Funds
twitch sigil
There is a class action lawsuit against PayPal alleging fraud and abuse of users' funds. Apparently, the company has been freezing accounts that they deem "suspicious" or "immoral," and in such a manner that a transaction for a fraction of the money in the account freezes all the funds, not just those under scrutiny.

One theory that irate users have posited is that PayPal is using the frozen funds illegally to inflate their stock value following their recent IPO. Users attempting to contact PayPal regarding their transactions have reported delays and "technical" difficulties that make it hard to get a hold of the company. Even those that have succeeded have been challenged to provide proof of ownership of the account, only to have more proof demanded.

A lot of online transactions are done exclusively through PayPal, such as ebay auctions and private art sales. I was considering signing up, since many Magic card auctions at ebay are PayPal-only, but I will be avoiding them from now on.

The site PayPalWarning.com has more information for concerned users or prospective users of PayPal.

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hmm. I am a member, and have in the past used Paypal extensively. I have never had a problem - in fact i loved it. But maybe it's a "that was then and this is now" sort of thing.

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