I'm obviously no lawyer, but this seems like a legal violation to me. Still, eBay must have checked with legal counsel and it must have been cleared. Still, it seems like an opportunity for a legal action on someone's part. The thing is that PayPal isn't a bank, so it doesn't have to adhere to banking's very stringent rules. I can imagine that all this might accomplish is to cause people to leave less money in PayPal. Here is eBay's exact language below ...

- - -

Late Fee Withdrawal From PayPal After 180 Days Past Due

This is a material change that we’re making to our User Agreement. For seller accounts that have balances more than 180 days overdue, eBay may collect the overdue balance owed from that seller’s PayPal account. The vast majority of our sellers settle their balances on time or before 180 days. eBay will resort to a PayPal withdrawal only after the balance has been overdue 180 days and our other collection efforts have been unsuccessful. We believe this helps level the playing field for the rest of the sellers who pay their bills. (Please note: Should eBay withdraw late fees, this will not alter the status of a seller’s PayPal account or funds remaining after the withdrawal.)