I've seen some things on both PayPal and eBay that I thought were pretty raunchy, so I always try to stay on the lookout for other twists in their "policies". PayPal was hit with a much-deserved class action suit a year or two back, but it ended in a very watered down settlement. I think the plaintiffs all were awarded free credit reports or something equally useless. It was a real sellout by the attornies for the plaintiffs, in my opinion.

It's too bad, because PayPal is a really cool service. It's just that it has grown large enough that they probably should act more like a brick and mortar bank. Ever try to walk in and do business with them if you have a problem? No way. They can hide behind the faceless mask of the internet, and that's no way for a financial institution to act, particularly one with as much money running through it as PayPal does. Same thing with eBay.