PayPal Charged With Playing Fast and Loose With Charity Money in Lawsuit
A proposed class action lawsuit filed in Chicago has accused PayPal of deception over charitable donations, when it diverted funds without informing the donor or the intended recipient, despite confirming the donation in emails.
Terry Kass, the lead plaintiff in the case, claims she used PayPal’s platform to give $3,250 to thirteen charities, including ten Chicago ones, in December 2016. Despite receiving an email confirming she had made the donations to the designated charity, she discovered the company failed to distribute the money to 10 of them. Only $100 was sent to three charities of her choosing, with the rest withheld by the company.
The lawsuit was filed in Chicago’s federal district court on Monday and accuses the internet payment company of systematic deception and potentially depriving charities of millions of dollars in donations, while donors are not acknowledged for their support.