Last week Pay Pal collected money in my name from an eBay buyer for an auction he had won. Only one problem, I did not have an account with them at the time.
I told the buyer that he should cancel the payment and send a check. Pay Pal informed him that the transaction was not reversible and the only way for me to retrieve the money was to fill out the application and join. I went ahead and signed up so the buyer would not be out his money and to consummate the transaction.

Today I am selling an item to another buyer. He cannot pay me unless he has an account. He set one up but is having difficulties because the amount seems to be above his limit with them.

Is it legal for Pay Pay to hold your money hostage and force us to sign up if we want to get to it? If anyone knows the answer to this please advise. I would also like to know if there are any watch dog organizations I can contact, as I wish to file a complaint concerning these practices.