Consumer complaint received 2018-06-21
Company: Paypal Holdings, Inc
State: NY
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Other transaction problem

Complaint:
I have a PayPal business account ( XXXX ), which I've had 2 years. I have been sending and collecting funds from clients with PayPal without any issues since that time, except for the fact that they won't release the funds quickly enough. 

Last week, on XX/XX/XXXX, my brother sent me {$6000.00} as a business loan. Immediately PayPal informed us that the funds would not be available for up to 72 hours. I called them, and they promised that the funds would be available by Saturday, XX/XX/XXXX. On Saturday, XX/XX/XXXX I tried to access the funds with my PayPal debit card, and was told my password was invalid. I tried to call PayPal, but they are closed on the weekend. 

On Monday, XX/XX/XXXX, I called PayPal about releasing my funds, and was told that this was an attempt to collect a debt. I didn't know what they were talking about. They told me that I had a " linked '' account ( XXXX ) which had an {$1800.00} collections issue that had never been paid. The issue dated back to XXXX! I told them I had not used that account in many years, and had no idea that there was a collection issue. In fact, I had been using my PayPal business account for 2 years without any issue of a collection on another account being brought to my attention. 

Their collections department told me that the {$6000.00} in my PayPal business account would not be released unless and until I paid back the {$1800.00}. They would not provide me with any documentation of this debt, just read a bunch of information over the phone. I asked them to work with me, that I urgently needed the {$6000.00} released and would they be willing to set up a payment plan for the {$1800.00}. They said no, unless I still had the XXXX XXXX account from XXXX that the {$1800.00} transaction was linked to. Of course I don't still have that account, nor did I have the {$1800.00} available. I told them I was unwilling to pay this amount unless I saw some documentation. They insisted that if I didn't pay the {$1800.00}, they would not release the {$6000.00} in funds in my business account. 

I reluctantly agreed to let them take the {$1800.00} out of my business account. They promised the remaining funds would be released on Wednesday, XX/XX/XXXX, and I could immediately transfer them into my checking account. The funds were released, and I transferred them to my checking account. To date ( 24 hours later ), the funds are not in my checking account. 

These heavy-handed collection practices, without providing proof of any collections issue other than over the phone, for a " linked '' account that I haven't used in several years, and their unwillingness to work with me on this matter, are in my view predatory and a form of blackmail. There was no way to appeal this matter, just give in or not get my money. 

I will no longer use PayPal under any circumstances. I would like CFPB to review their predatory practices, their practice of holding on to funds as long as possible before releasing them to their customers, and their terrible customer service. I would have been willing to review any documentation and, if it was proven that I owed any money to PayPal, made payment arrangements to pay the money back in full. I was never offered that opportunity, just presented with an ultimatum to pay an alleged personal debt out of my business account, thereby disrupting my cash flow and making my life just plain miserable. Any help you can give to let PayPal know how dissatisfied I am with their service, their predatory practices, and their terrible customer service would be much appreciated. I can only hope that they will return the {$1800.00} to my business account.

Company response to consumer: Closed with explanation