I also confirm. My account is frozen for no good reason since 1 year. No reply to any mails. Germany.

I once used my Bank to get back my money from Paypal. Paypal took an amount from my credit card. So I called the bank and told them, Paypal did it without authorization. I had to fill a form and got my money back within a few days. I gave Paypal only access to my credit card, not to my bank account. Although they claim in their terms and conditions that this is correct (account OR credit card), I assume this is the main reason why my account is frozen. I can't even close it or delete data.

I can confirm that they are sitting on 2000 GBP of mine and not responding to anything.

Stop contacting them, and start contacting the relevant authorities.

It's looking increasingly likely that I will have to sue them.

Just recently a story was published in Germany where they evaded their responsibilities as a bank by clever shifting of responsibilties between eBay, PayPal and the credit-card issuer. So in case of a TV shipped to a identity thief chargebacks were no longer possible (I cannot find the article right now).

Another story where PayPal doesn't provide chargebacks to the customer after paying a non-shipping company:

http://www.heise.de/ct-tv/artikel/Video-Vorsicht-Kunde-80133...

(Update: I had the description and the video mixed up...)

Considering that this story was from Europe, that doesn't appear to be the case.

I can assure you (from my own experience) that these horror stories also apply to EU accounts. In fact, the article was written about a Dutch PayPal account.