PayPal holding funds for account with a pseudonym / nickname

[jaks_thingz]

I opened a new PayPal account mid 2016 with a pseudonym to use with an ebay account I use specifically for buying. I also have a well established PayPal account I use for selling. I have been transferring funds between the two accounts with no problem for the last few months... That is until Sunday.

I transferred funds to my new PayPal account which took the funds in it to over $1200... I went to make a purchase & the next thing I knew PayPal have limited my account. I got this message  "Until we can confirm the information you've given us, we need to limit most of the functionality on your account. For now, you can continue to receive payments but you won't be able to withdraw funds or make payments"

So, I uploaded scans of the info PP wanted - Medicare card / rates notice & passport. The passport was rejected... so I called PP customer service..

I was told PP need a passport or citizenship document showing my pseudonym to be my legal name.. Which obviously I cannot do!!

Cutting a long story short PP basically told me I'd have to get a legal name change to withdraw my money.. I then asked them what would happen to my funds if I was unable to do this... answer was unclaimed funds go to the government... I'm astounded that PayPal can get away with this s**t.....

Does anyone have any advice on what I should do next... I'm spitting nails that PayPal will still let me receive money into my pseudonym account but not let me withdraw it & knowing full well I may lose my money...

[miss-decorum · Accepted solution]

Give the Financial Ombudsman a call, their number is at the top of their webpage at https://www.fos.org.au/ I have spoken to them and the FOS rep I spoke to was extremely helpful. 

They will advise you how to go about filing a complaint with PP & in what order to do it. You will need to file the complaint with PP before the FOS can step in. FOS will want to see proof that you tried to settle your dispute with PP first so make sure you keep all correspondence between yourself & PP. The email address for PP complaints is  auexecutiveescalations@paypal.com

Aways stay polite with PP even if their CS rep makes you want to reach down the phone to stab them in the eye with a fork  !

Opening an account with a pseudonym was silly, but you're not the first & I bet you won't be the last.

Good luck & keep this thread updated with your progress with the dreaded PreyPal.