The frozen $5,000 on today's horror story, is a reminder that I too had this experience. I acquired a spinal cord injury on Sept 17, 2007, and shortly thereafter my husband opened a fund for me and other spinal cord injureds to receive the assistance that they needed for mobility. Paypal was utilized from my blog to receive and then transfer to our bank account any donations. My husband filled out all the info as required from Paypal. When we received our first donation and then sent a thank you, we immediately were told that we could not have the funds, until we could prove that we were a 501C3. Well this was proved through our state, but the federal would take longer. This was not considered valid, and we could not get the funds.
Three plus years later, today as a matter of fact, we received an email that our funds would be put into an account at a bank of which we did not have an account. Someone else was able to have the funds transferred into their account, but we never could receive the funds. I called and got the transaction stopped and reversed, but I was told that after 180 days I could have gotten the funds and I should have been informed. Well I wasn't informed and it's been over 3 years. He looked at my email history and admitted that no one had informed me of this fact. I wanted a check issued to clear out my account once and for all, and he has this in the works. Thanks to Mark for doing a great job. It only took me 3 years to have this money available.
I thought that Paypal should receive 1099's from all the people that never received their money, and was being held by Paypal. If Paypal had more responsible employees like Mark they would not have all these problems!