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Sorry to hear that. If you want to use PayPal, just use a completely new email address for new account. If the old account is laying dormant/unused for so long, they limit/lock it for security reasons.
I have over $100 in available funds but I can't access it unless I load my credit card. Stupid service. I am switching to ANYTHING else.
Even the contact us is made to be deliberately frustrating. I can't even write a message, instead it bumps me into pre-constructed answers. I have no idea how companies offering such a poor level of service can still operate. I guess their method is to be walled as possible so that any money coming in, can't be easily utilized.
Not using service any longer.