Possession is 9/10ths of the law
If property is the subject of a reasonable dispute-- e.g. whether a contractual term applies-- whomever is holding the property has the upper hand. Especially if the amount of property/money is small compared to the probable cost of litigation and especially so if one is unlikely to recover legal fees.
In any case, I agree with https://news.ycombinator.com/item?id=33063096
> This is nonsense,
ORLY?
When PayPal closes people's accounts and keeps the money, in what percentage of cases do you think the people eventually get their money back?
My guess is far fewer than 10%.