Consumer complaint received 2018-08-22
Company: Paypal Holdings, Inc
State: UT
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem

Complaint:
On XX/XX/2018 my friend XXXX was getting ready to move from XXXX to XXXX where Im at. I was sending him money for Gas and food for a hotel for a night. I told him i could send him {$400.00}. XXXX XXXX has outrageously huge fees so did XXXX XXXX and a friend mentioned XXXX. So I signed up. Had a to send in my phone bill to them to verify the number was mine because the number was on an account already. It was released I was able to sign up for account I added my debit card I added my bank accounts. Ive verified my identity I verified the accounts, So I sent XXXX the {$400.00}. He was having a hard time being able to accept the payment. But it was sent to him he was having technical issues With being able to accept a payment. I got on a chat with a XXXX specialist or customer service person And they confirm the payment was sent. Finally hes able to sign up for account and he goes except payment and it says that I canceled itAnd I didnt cancel it so I got back on chat again and was told the payment was canceled and the money will be returned to me. They stated that they wouldnt disclose what reason it was cancelled or why they lied and said i cancelled it. And all of this was within 20 minutes of me making the payment. So I made the payment through other ways. XXXX still pulled the money out of my account even though they they cancelled it. The payment cleared the bank and came out so because I had given money elsewhere to XXXX for the payment I was overdrawn in my account now {$170.00}. I got on chat with them again and was very upset I sent them a screenshot of my bank statement to show them the transactions and they credited my account for the overdraft fee of {$35.00}. After they gave me the credit that they turned around and froze my account so Im not able to withdrawl the money. Even though the money is then reimbursing me for a fee they cost me they said that I am now permanently deactivated that I violated a user agreement rule. I used XXXX for what XXXX is forAnd thats to send money to friends and family. I used my own bank account and everything is verified, sent them a copy of my ID thats valid and current. That payment they werent supposed to take since they cancelled it but did anyways cleared. Now they say the funds are on hold for 180 days because their loss prevention and fraud places were flagged. Ive yet to get the money back i cant think of a single thing i did to violate a term of condition or how fraud at all is even involved. It sounds like a scam and its discrimination and they stole from me and now said they can not offer any further assistance. Ive yet to recieve the {$400.00} they said they were sorry for and supposedly sent back. They admitted to pulling the money by mistake i have the chat logs so there should no reason why my account was frozen or now permanently deactivated or why lose prevention would be holding any funds. XXXX XXXX an account specialist is the one who is behind it.

Company response to consumer: Closed with monetary relief