I eventually got through to someone who said the mistake was their end - About an hour ago I supplied the information they asked for and I have just received the following email!
Important information:
We regret to inform you that we’re initiating the closure of your PayPal
account because of certain activity that took place relating to your
account. This measure is necessary to protect us from potential financial
losses.
Your right to appeal:
We always perform a thorough investigation before deciding to initiate the
closure of an account. However, we appreciate that from time to time
misunderstandings can happen. If you wish, you can appeal our decision.
Just get in touch with us and let us know. You can do so by logging in to
your PayPal account at
www.paypal.co.uk and clicking 'Contact Us' at the
bottom of any PayPal page.
Your account balance during the account closure period:
This decision means we must oversee the appropriate movement of any money
currently in your account. A gradual approach to account closure allows us
to part ways, while considering any liabilities that may arise. Our aim is
to review any valid buyer claims lodged against you. We must allow enough
time for claims to be filed as these can take several months to be reported
and resolved.
How will the process work?
1. We’ll hold any money currently in your account in accordance with
section 2 below. We do this because it provides sufficient time for most
claims, such as chargebacks, to be filed by other parties. These claims can
result in financial loss. If your account balance is below zero, you’ll
have to settle the amount owing on your account to avoid further action.
2. Our first review at 30 days from the date of this email will
calculate our exposure and we’ll release any excess funds to you at that
time for withdrawal. We’ll communicate this to you at the time. This review
can result in 3 different outcomes as detailed in sub-sections 2(1)-(3)
below. We’ll always communicate the outcome of our reviews to you.
1. We’ll release your entire remaining balance to you for
withdrawal. Please note that if you choose not to withdraw the money at
that point we reserve the right to re-coup any money at the next review; or
2. We’ll release a part of your remaining balance to you. If this is
the case we’ll inform you about how much money can be withdrawn. We’ll then
conduct another review 30 days later that will repeat the process detailed
under section 2; or
3. We won’t release any funds to you if we deem our exposure to be
greater than or equal to your available balance.
Your account may be reviewed up to 5 times; at 30 day intervals until day
180 from the date of this email. If any money remains in your account at
day 180 it will be made available for withdrawal at that point.
Accounts with a balance owing to PayPal:
If your account shows an amount owing to us, you must add funds to ensure
that the balance returns to zero. Please note that we reserve the right to
recover the amount by legal means.
A copy of our User Agreement can be found by clicking ‘Legal Agreements’ at
the bottom of any PayPal page. Our right to close your PayPal account, and
the retention of funds, are covered in our User Agreement under sections
10.2 and 10.3.
Sincerely,
PayPal Account Review Department
Will My Funds Be Released Automcatically After 180 Days? 
