I normally lurk but I'm not sure how many people might have experience in this, so it was time to finally sign up and stop lurking. ToT
Earlier this year, my mother passed away and we had to handle things like her bank account, paypal, etc.
In order to close the account, you have to provide a certificate of their death to prove that they have legitimately passed away. After that point, the person closing the account has to state "This activity is fraudulent" or file the chargebacks manually / etc. Paypal specifically does not automatically begin to file these chargebacks. When we filed t