Although it's insensitive, it makes sense from a legal perspective. IANAL, but I imagine it's something like:<p>1. paypal receives notice she's deceased, so they have to collect the remaining balance<p>2. the creditor must notify the client (hence the letter being addressed to her) of their account being closed, and that the full amount is due<p>3. the creditor must specify a reason for terminating the account, hence the "see section X of the agreement that says you have to be alive to hold an account", "...you are deceased"