[gdee]

  >  PayPal doesn't need to freeze your account, they can
  > just as easily prevent you from withdrawing money to 
  > your bank account, which sucks but it probably won't 
  > kill your business. At least your customers can still 
  > pay you.

I can't believe I'm writing in PayPal's defense but facts are facts.

They did this to me last week. They sent a message Friday night that they would need some extra documentation. I acted upon that on the spot. They then proceeded to restrict my account next Monday because they didn't bother to process my response to their request from Friday. That sucked, but they only locked withdrawals. My customers didn't see a thing, and they finally suspended restrictions Thursday. Took a few phone calls to make sure they hurry (to a number that is not free and not on the front page, but definitely not "10 pages deep": from your account > contact (footer) > call us).

Like anticipated, I feel dirty for speaking to their defense.