Hello, @sov254.
Thanks for taking the time to add your questions here on the PayPal Community Forum. I certainly understand how this type of situation would be concerning. Based on what you mentioned, it sounds as though PayPal decided to discontinue doing business based on violations of the Acceptable Use Policy (AUP). If that's correct, here’s what I can tell you.
If PayPal determines there have been violations of the AUP, that may lead to a permanent limitation being placed on an account, we may hold funds for up to 180 days, debit a customer's PayPal account for up to $2,500.00 USD(CAD) for each violation, and/or take legal action against the account holder to recover additional losses.
When a customer accepts the PayPal Legal Agreements and completes transactions using a PayPal account, that signals acceptance of the provisions in the User Agreement related to applying debits as a result of violations of the AUP. It is also accepted that PayPal may deduct such damages directly from any existing PayPal balance and in any PayPal account a customer creates, owns, and/or controls.
Examples of activities that may subject a customer to damages by PayPal can be found in the Acceptable Use Policy which can be found by logging on and clicking Legal at the bottom of any page.
I hope this helps clarify the situation. I understand this may not be the answer you were looking for, but I don't want to mislead you. PayPal also wishes you the best of luck in your future online endeavors.
Sincerely,
Michael
PayPal_Michael
