This is 15.4 (c) of the Paypal Credit agreement - "We may close the Credit Account and demand repayment of the full amount you owe us if you die or become of unsound mind"

I tried to look at it for you, but because I don't have an existing PayPal Credit agreement with them, they won't let me view it. :-(

Won't let me see it without logging in:

https://www.paypal.com/uk/webapps/mpp/ua/legalhub-full?local...

My PayPal account is American, so I didn't try to login and read it.

EDIT: Yep, redirects me the the US credit card agreement when I login.

It's not unreasonable for a company to ask for repayment of outstanding debt upon death. Your outstanding mortgage balance, auto loan, credit card balances, etc., don't magically become discharged upon your death. Those matters are normally handled by one's estate.

To say that it's a breach of agreement is inaccurate. You agree to repay those on death, so it would only be a breach of agreement if your estate attempts to avoid payment. For that reason, the letter definitely was insensitive as there's no reason to call her out for not fulfilling her agreement, unless maybe her estate is valueless and they are unable to collect?