Same thing happened to me. I came here to look for advice which I never found. I then went into the FNB branch to get answers and the lovely man assisted me every step of the way. We called FNB PayPal branch which even though took 10 -15 min to get through to someone they told us we need to fill in a form (not sure what form, something about tax), so I went to the teller where the lady filled in the form and scanned it back to them. Spent another 10 - 15 min to get back to the lady we spoke to on the phone who had received the documents and lifted the hold for me. The whole procedure took 58 min. I am now able to withdraw. Also I found out this hold was only on the use of PayPal services, therefore I would have been able to make transactions like normal, I just was not able to use any PayPal services, it is all fixed now and back to normal.
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