The law says the bank must give them their money. But banks are above the law. I know when PaPal codes and account, PayPal usually steals the money. Most traditional banks eventually give you your money if you hire a lawyer, that is, they give the money to the lawyer who keeps it.
How do you know Paypal usually keeps the money, is there a public accounting of this situation? Would be interesting to analyze - please share any info you have on the data.
PayPal's EULA has a "liquidated damages clause", which means that if they think you lost them money and damaged them, instead of having to go to a court, they just charge you what they think the damages are.
