This is poor service from a company of the size and reputation of Paypal. I too have just received an email of the same nature, limiting my account until I reconfirm my identity. I have an account with them for ten years. I have kept my details up to date. Out of the blue my account is now blocked from paying or sending. Paypal have done this without notice or reasonable explanation.
Whatever the problem Paypal has encountered, they are one more customer service mistake away from losing me as a customer.
