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February 28, 2017 10:00 pm

PayPal's Donation Tools Stiff Some Charities, New Class Action Lawsuit Alleges

Charitable donations made through PayPal's Giving Fund platform may never reach their intended recipients, a federal class-action lawsuit filed Tuesday in Chicago has alleged. From a report on CNBC: When charitable accounts are not set up correctly, PayPal continues to accept donations on their behalf, the suit alleges. Instead of notifying donors and nonprofits of the error, PayPal takes the money after six months and redirects it to another charity "without regard to the intention, beliefs, or desires of the donor," the lawsuit claims. The class action status of the suit still needs to be certified by a judge.

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