Sounds bogus to me......I would at least talk to them first.
Log on to PayPal and find their resolution center. At the bottom of that page click on "contact". Have a pad and pen ready because it will show you a toll free number and more importantly a one time use code to let the call go through. If you wait too long, the code will expire and you will have to start over again.
I have called them before, got a real person every time and they were very pleasant and helpful.