The paypal account issue is one I have seen many times, ordinary folks are dealt with in a high handed manner and left hanging in the wind as regards their funds, Paypal most certainly make sure they are the most prominent service but the truth is they are one of the poorest in terms of what they deliver and customer service, in the UK they have a special deal with the authorities that ties them to abiding by a UK based regulator but make a complaint to them directly and you can expect not to be given that information but a Luxembourg address, a pretty transparent and underhand business practice and one that's very common when things go wrong with an account, the second most common paypal complaint is that the account has been frozen for suspected fraud, this seems to occur in many of the complaints I have seen and most would expect paypal to contact the police if a crime was going on perhaps ? Not a chance, you wont get a penny back from them and theres little you can do to untangle your funds, In many of the cases I have seen folks simply abandon using Paypal or use a relatives name or account to make online purchases due to being unable to force this sprawling offshore company to act in a legitimate manner.
You'll all be pleased to hear that I don't have a paypal account and all the stories I have related to you are ones where I have been asked to try to find out what went wrong, in all cases bar one I was unable to get information (we cant reveal or security methods ...) or the users tied up funds and I advised them to use a more reputable company although prior to this article I didn't see much for folks in the way of a choice.
Use this company if you wish but the golden rule is never to leave much in the account as a float and you can thus avoid losing a few hundred or more into a limbo land.