My only experience with paypal was about 8 years ago. I briefly remember signing up for it roughly 2-3 years prior to that. I linked my paypal to my (older) bank account so I could purchase something. This account had about $100 in it - it was my old left over account from before I got married and got a joint account, etc. So I kept a tiny bit of money in it. I had moved about 2-3 times since opening that account - I never used the account for anything, it just sat there with money in it. It was eventually forgotten about.

Anyway, long story short. Someone managed to access my paypal and request a sum of money around roughly $40. That account had about $38 in it at the time. Paypal flagged the transaction as fraudulent, stored the money 'in my paypal account' instead of sending it to the requester, and froze my account. But this overdrew my bank account by roughly $2. Needless to say, 2-3 years of late fees added up to a substantial amount of money - two separate accounts - one for about $280 that I owed the bank and another that was about $350 that i owed to their 'overdraft' company. I didn't find out about either until they were about 2-3 years old and in collections.

I realize what I'm explaining is totally my own fault for not monitoring that account and keeping it up to date, but if paypal would have either redeposited that money into my account or sent some emails, instead of freezing the assets in a holding account, I could have avoided that.

In either event, that left a bitter taste in my mouth, and i severed all ties with paypal and that old account at that point.

I had to explain this multiple times to different government and military agencies throughout my career - it still comes up on background investigations.