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Paypal, as part of their banking license, perform random checks on accounts where they ask for Photo ID, Proof of Address and Proof of Age. However, if one is unable to provide this information, for whatever reason, they prevent you withdrawing your funds for 180 days.

Is this legal?

(Specifically in the UK if that's relevant)

2

Probably

Terms and Conditions extract:

7.2 Limitations on Closing Your Account. You may not close your Account to evade an investigation. If you attempt to close your Account while we are conducting an investigation, we may hold your funds for up to 180 Days to protect PayPal or a third party against the risk of Reversals, Chargebacks, Claims, fees, fines, penalties and other liabilities of whatever nature. You will remain liable for all obligations related to your Account even after the Account is closed.

10.6 Information about you

a. PayPal reserves the right to request additional information from you, other than what is referred to in this Agreement, to allow it to comply with its anti-money laundering obligations. You agree to comply with any request for further information as we reasonably require to enable us to comply with our anti-money laundering obligations. This may include, without limitation, requiring you to fax, email or otherwise provide to us certain identification documents. You also agree to provide us, upon our reasonable request and at your own expense, information about your finance and operations, including, without limitation, your most recent financial statements (certified or otherwise) and merchant processing statements (if applicable).

This is the contract that you agreed to be bound by.

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  • And say that the person can't legally be bound by a contract for a certain reason that breaches their T&Cs? - Hypothetically speaking say that the person was under 18 so couldn't provide the proof of age, would they have to instantly release the funds and then close the account? – user175 Aug 9 '15 at 23:45
  • If you are asking another question, please ask another question. – Dale M Aug 9 '15 at 23:57
  • @JamesHughes If you never prove who you are, then PayPal will likely consider the funds forfeit. If proving who you are proves you are underage, PayPal would likely require a parent to contact them and retrieve any funds. But that's not really something to ask here - that's really getting into just PayPal customer service issues. – animuson Aug 10 '15 at 0:05

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