According to the San Francisco Chronicle, there are approx. 100,000 complaints outstanding at PayPal (Are any of these yours?). In many instances disputes can run on for months leaving people frustrated and out of pocket as they are unable to access their accounts. So what happens to the millions of dollars tied up in frozen accounts and disputes? Well, here is a clip from the San Francisco Chronicle that basically sums it up:
U.S. District Judge Jeremy Fogel of San Jose refused to dismiss a lawsuit that seeks class-action status on behalf of thousands of PayPal customers nationwide. A common allegation is that the company brushes off or stalls customer grievances for months and meanwhile freezes the customer's account and pockets the interest (So that's how they make their money!). No wonder they freeze so many accounts!
This is a quote from www.paypalwarning.com
There are an unhealthy preponderance of sites like this, which I wish I'd looked into before sending money to Paypal. Among them are www.paypal.org and www.paypalsucks.com
These sites, in addition to horror stories, offer alternatives to Paypal. Since they cover the bases, this is all I have to say about the matter.