How Paypal ruined my business

Personal Background: I own a retail store in New York and sell merchandise both in store and online through several outlets including Ebay. I was a frequent buyer and seller on Ebay for many years.  I had over 2,000 positive feedback and 0 negative feedback. I never had a single case opened against me and never received any complaints.

In May of 2011 I decided to start selling on Ebay again. I immediately received an email from Paypal stating they would hold any funds from auctions for 21 day or release them early if the customer left feedback or 3 days after the items were delivered. I had no problem with this policy because I ship quickly and it wasn't a big deal. I was only selling 35-40 items per month and all items were sent with verified tracking numbers and all items were delivered. On Sept. 20th Paypal decided to place a limitation on my account. The limitation was a permanent limitation with NO option to resolve. I was never contacted by Ebay or Paypal regarding any issues with my accounts. Upon calling Paypal I was told my account was permanently limited because my account is related to someone else's account.  This accusation in physically impossible for several reasons. 1.) I have NEVER had another Paypal or Ebay account, 2.) There is nobody else in my home who is capable of using a computer (my kids are not old enough) 3.) My computer is brand new, only purchased days before I started selling on Ebay again, 4.) My internet is secured and there is no way someone else can be using my connection. I even surfed into my router to make sure I was the ONLY PC connected to my network.
Paypal refused to provide me with any information for the supposed "linked account" or provide me with any proof. Paypal simply stated that I agreed to their policy and they can withhold my money as long as they want!

2 days later I filed a complaint with the BBB, Paypal sent a letter to the BBB stating that my account was closed because it was linked to some account that owed Paypal money. Paypal claimed they will be holding my funds for 180 days to prevent any possible charge backs. I filed a rebuttal with the BBB because their claims are baseless and untrue.

What doesn't make sense: ALL of my items have been tracked, delivered and buyers left me positive feedback on Ebay. I do not have 1 single item that is not accounted for in my Paypal account. In the resolution center, Paypal states the reason they permanently limited my account was because of "suspicious recent activity on my account."  However when I call Paypal customer service and corporate escalations dept. I receive many different  reasons why my account was limited.

To sum it up, Paypal is withholding funds for transactions that have been delivered and positive feedback has been left. I have never used my Paypal account for anything but Ebay transactions. I have been a buyer / seller for over 5 years with NO complaints or issues. I really had a belief that Paypal was safe until this happened to me.

Now after all of this Paypal is sending me emails threatening to take action if I do not send out the Ebay auctions that have ended since my account was limited. Why would I send out items that I know I will NEVER get paid for? Not only did Paypal steal over $2,500 from me but they have also permanently damaged my Ebay account and my stores reputation. I sold 15 items since my Paypal account was limited and I had to try and explain to the buyers that I can not send them items they won. A lot of my buyers were repeat customers because they were very happy with how quickly I ship and my prices.

My experience with Paypal customer service has been terrible. I have been cursed at, hung up on, lied to, and abused. I will NEVER use Paypal again and I hope others will follow suit. BEWARE of Paypal and their crooked policies.