http://www.freedweiss.com/PayPal-Holding-Money.shtmlF&W has been appointed interim lead class counsel in a putative class action against PayPal for PayPal holding seller's money up to 180 days (sometimes even longer). PayPal often does not provide a basis for why it is holding the funds and will also tell the seller to get a subpoena to find out why their money is frozen. If you have had money held by PayPal, please contact us for information about the case.
http://www.cowbellyblog.com/2010/06/18/the-truth-about-paypal-paypal-class-action-lawsuit-may-2010/Detail some personal experience with Paypal, Paypal's reasoning behind their actions, and the specific laws and cases which define paypal's actions as illegal
http://www.reddit.com/r/reddit.com/comments/l4q2y/please_help_me_expose_this_newest_paypal_fraud/ The reddit that lead me to all this juicy information.
Was hopping around reddit and found this and thought some of you might be interested with the on-going drama and trust issues involved in using Paypal.