Yes, us too... Seems these days PayPal just get bored and close a bunch of accounts for no reason.

We run a large business through eBay for over a year now. All legit, registered, business bank accounts, all positive feedback, one INAD case which we won. Our account is fully verified in everyway.

2 days ago at 2am we get an email from PP that our account has been limited due to suspicious account activity. WTH? We rang them promptly at 9am to try to find out whats going on, meanwhile we were unable to accept payments on eBay for our 200 listed items.

After hours on the phone they revealed to us that there is an account with similar account details which they are investigating. My partner and his father are Snr and Jnr so they share the same first name, last name, and the address is the same. The difference are NUMERABLE, and all provable that this is two people, father and son, and aside from the name/address similarities every other account detail proves that its two different accounts, held by two different people.

We were NOT given the opportunity to appeal the limit, we were also NOT ASKED FOR DOCUMENTATION! 24 hours after the limit our account was closed! We called them many times yesterday stating that its two seperate people, neither account is ever used by the other person for any reason, ours is strictly for business buying and selling.

And there is all the bullsh@t from PP. They took it upon themselves to close our account and REFUSED to look at the evidence we complied. Additionally they left us with NO SAFE PAYMENT METHOD on ebay, which is our only sales outlet... Which in turn affected our sales that day as we COULDNT accept PayPal and had to be able to accept PayPal!

Needless to say we feel that this was a massive misjustice against us and our business and have already spoken to a solicitor who will firstly be compiling all our identification records and his fathers, drafting a letter to PayPal stating that without them releasing the evidence used by them in the investigation into our case we will subpoena it eventually to get both accounts reinstated. This will happen, dont doubt it, nor us. We are right and will fight to the end to prove it.
If anyone has a similar problem that they are activily taking legal action with please reply here! Its a long road and a long battle and the more the merrier! And dont just post that you 'will' be taking action, acctually be prepared, as we are to do it!