Earlier quoted context omitted.
FYI, last I remember, Pidgin stored your passwords in plaintext in an ASCII file on disk, unless you jumped through some hoops to integrate it with your desktop environment's keyring. They even have a article up on their site explaining why it's necessary to do this.
You can disable storing passwords. If you don’t want to have to enter a ‘master password’ when Pidgin starts up, there is no way they can store the passwords more securely than plaintext. Get full disk encryption and be happy.
Full disk encryption and per-user encryption are good steps. But an accidental backup of Pidgin will still reveal passwords that would be safe if they bothered to use platform specific APIs for such storage.