Several PayPal users, mostly eBay buyers from the Philippines, recently complained that PayPal selectively limits certain accounts.
It was reported that this usually happens, after a user has logged in to the account. Worse, the account could be limited after an online purchase is almost complete — that is, the transaction has been debited from the credit card but the payment is frozen and not sent to the seller.
What happens, then, is that the user ends up with a limited PayPal account, charges against the credit card, and an unpaid seller who won’t send the product because payment is not received. What an unfortunate situation to be in, indeed.