This posting is a little off topic, but since I have used Paypal to buy and sell gear on line for years I thought I would bring Paypal's new policies to light ahead of their implementation April 1, 2012. I normally ignore these things and my guess is that you might also. Here are the new terms that I find intrusive and unnecessary, as Paypal does not indicate what would justify cause for this invasion of your financial privacy.
"ordering a credit report, or verifying your Information against third party databases or through other sources." Credit reports are notoriously inaccurate and whose 3rd party databases are they going to access? Multiple inquiries can actually lower your credit score. This is not quite as invasive as a trans-vaginal ultrasound, but bad nonetheless. There is no reason for Paypal to do anything more than any bank or credit card company to verify your identity. Mother's maiden name, prior address, the name of your dog, the last four digits of your social security number are normally and a few other questions are enough for Chase Bank, why not Paypal?
There are a few other things that might bother you, you should visit their policy updates page.