I've actually dealt with this with many clients. There are ways to hold paypal accountable for your account, but it won't change their unlawful policies. The t

I've actually dealt with this with many clients. There are ways to hold paypal accountable for your account, but it won't change their unlawful policies. The terms of use for paypal have a mandatory arbitration clause that all disputes should be submitted to binding arbitration. This isn't necessarily bad. I've gotten clients money back every time so far. You just need to know what strategy you are pursuing. There are two ways you can go about it - File for arbitration or file in small claims court. One good thing about arbitration is that under the terms of use, and to a certain extent procedural rules, that paypal has to pay the costs of arbitration up front if you ask them. This means you do not have to pay anything for your claim to be heard. Here is the main problem at first - due to the procedural rules for arbitration, any party can have the action dismissed at their request if the claim is cognizable in small claims court where the plaintiff resides. Small claims court usually handles claims up to 5000 and there are certain types of claims excluded. To get around this, you need just to state your claim is worth more than 5000 to prevent your case from being dismissed . The small claims route works as well. Paypal is unlikely to send an attorney to represent them. You'll get a judgment but then will have to collect on it. Also you'll have to pay some costs up front. The reason this is typically so easy is because the reasons paypal gives for acceptal use policy violations are typically not grounded in any facts. The theft is so transparent that they are unable to defend the action in any serious way.