Frozen Account due to paypal error

Glad to be able to post the story, and hopefully help some others avoid this aggravation (if not loss of funds).

About a month ago paypal 'compliance' wrote and said in their review of my account, they needed more information. AT first they didn't say why, they just asked about my 'business relationship' from some payees, and one of my own payments.

I asked them why they needed to know this, and said I wasn't a business. (I am a private individual; I've had a paypal account for ... maybe 8 years or so with no problems.)

They wrote back and said they need to ensure against fraud for those falling in the charity or non-profit category.

I said I wasn't a charity, or non-profit, or a business.

Well -- to make the last month less dramatic than it is -- every day, we have had this same conversation, which is basically:

A. paypal (complaince and international now; I live in New Zealand) -- they write:
your account is limited, please fax us your business model.

B. I write back and say (daily at least): I am NOT a charity, you have my cl***ification wrong, please fix that error.

repeat last two in endless loop, with minor variations on the theme (and increasing inquiry on my part about their reading comprehension skills).

Well, update is -- they said they have suspended my account, because they "do not feel comfortable with the amount of risk I pose". So paypal is uncomfortable. (bummer)

Note: I am a VERY low volume user, I mainly use my account as a 'tip jar' for my website, and for a few purchase item transactions, to family(!), and for some occasional webwork. (Paypal allows the 'tipjar' category, for the 'donate' button, which does not imply you are a charity!)

So, they now have a few hundred dollars of mine, which they say they'll need to hold for 180 days, in case they have costs incurred with this investigation.

huh?

Paypal, you SIMPLY(!) have an ERROR in your account: How about we avoid the investigative procedures?

Duh.

This week I've begun calling the account executives. (Thanks to having the phone numbers available). Being in New Zealand, I'm missing the time zones to reach them direct so far, but I've called Meg (twice) and Tara and Thomas and have left messages. I'm not hopeful of a response, but I must try something?

This is a very helpless feeling, because you are up against PAYPAL/EBAY/(BBB?) -- none of whom are on the customer's side. This is full abuse, incompetence, and bordering on (if not full-fleged) criminal.

What's the status of the latest cl*** action suit? I'm in.

I'll update you as this progresses.
(As skype hasn't yet pawned my $4 credit so I can make virtually endless toll calls!)

Sincerely,
VS - in New Zealand