My account was also limited, out of nowhere, with no explanation. I have been a Paypal user for 6 years, and I use it for small online purchases, and have received/sent a few gifts between friends and family here and there. I have no idea what prompted my ban and calling the customer service line yields no explanation. I'm sure it must be a mistake, but there appears to be absolutely no appeals process or even chance for explanation of the ban. They told me over the phone that I, personally, am disallowed from doing business with Paypal ever again, so even if I sign up for a new account it will be automatically limited. I am frustrated and disappointed. I have been using Paypal for years with no problems. It is disturbing to me that I cannot get an explanation, and that they are holding my balance for 180 days. Furthermore, it is frightening that this has happened to so many people, from what I have read online. I am advising my friends and family to never leave a balance in their Paypal account, and not rely on the service, because apparently your account can be limited and funds frozen at any time.
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