[jknutson]

I can’t be sure of whether this specific line in their user agreement applies to this specific situation (balance of an account that has been locked isn’t specifically mentioned), but a cursory glance at their (Canadian) user agreement [1] states the following:

“PayPal combines your balance with the balances of other users and invests those funds in liquid investments. PayPal owns the interest or other earnings on these investments.”

(I can’t seem to find a way to hyperlink to selected text on iOS, so I’ve also included a screenshot of this quoted statement instead, below [2])

I assume that (unless stated otherwise in their agreements / legal documents) PayPal continues to apply the same policy to funds that are held by them in accounts pending closure for high chargeback rates. I could be wrong though, I just ctrl+f’d for “balance” on the first legal document linked on their site. Also, only applies for Canada, since I didn’t check any other country’s agreements (but my guess is that wherever it’s not expressly illegal for them to do so, they’ll use whatever money they’re “holding” for you as a revenue generating investment vehicle).

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1: https://www.paypal.com/ca/legalhub/useragreement-full?locale...

2: https://ibb.co/KXc33RP