Use Caution When Giving Social Security Number To PayPal

I once knew a person worked for PayPal (I knew him from back in high school, he was the kind of kid you like to keep a safe distance from).
Anyway, he pulled into a gas station brand on a  new motorcycle. I asked him how he was able to afford it.
He bragged to me about how he was able to secure a bank loan with someone's info he obtained at his job with PayPal. Apparently he was filling out bank applications and using the poor unsuspecting PayPal user's as the co-signer!
When I expressed my shock and disapproval, he chuckled and told me all of his co-worker friends were doing it too! (Now I know this could happen while filling out an application for a credit card at "Best Buy" but at least they don't try and put a hold on your funds).
I didn't see him too many times after that. The last I knew he shipped out with the Marines and then I never saw him again.

So, recently my girlfriend needed to sell some items on eBay. She decided to sell her doll collection she had since she was a little girl.
She signed up for PayPal. She verified the account, PayPal charged $1.95 to the CC card. She sold the dolls and a few other things on eBay and then PAYPAL LIMITED HER ACCOUNT!
The poor girl already took a loss on the things she sold on "greedBay" thanks in part of the outrageous seller fees.
Now PayPal wants her SS number, bank account statement, proof of residence, a utility bill, plus a copy of her driver's license!
Luckily I was able to stop her, before she provided her info to such a loosely knit organization, who hire conspiring idiots who steal your identity.

So after a lengthy discussion on the phone, she was told she can't receive her  money for 180 days unless she gives them the info. She needs the money for medical expenses and expensive meds.  I'm not rich, so I wasn't able to help there.
She ended up giving them the info. They told her it would take 24-48 hours and then she would get an email. She got it alright. It was an email informing her, they were closing her account and she could not get the money for 180 days! Now what? Can they do that?
She's out the doll collection, old jewelry from her grandmother and the rest of the stuff she sold on eBay. Worst of all, she can't buy the meds she needs.
Had PayPal told her on the phone they were going to hold her funds, she could have bought her medication. She instead paid her mortgage believing the PayPal funds would soon be available!
I cannot express how ticked off I am at paypal right now!
 

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