Consumer complaint received 2020-04-28
Company: Paypal Holdings, Inc
State: CA
Product: Debt collection
Sub-product: Other debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
I am not sure if I am in the right category .... But here is what happened. 

I. Complaint 1 : Opening an Unauthorized PayPal Cash Plus Account, which Generated an Over {$3000.00} balance in the negative I had a PayPal account since XXXX. I was never aware that a PayPal Cash Plus account was opened for me by PayPal. PayPal can not tell me when the account was opened exactly and gives totally contradictory and conflicting information. One representative writes that the PayPal Cash Plus account was opened sometimes when I accepted a payment an kept it in PayPal Balance. Another PayPal representative writes that it was just a " re-branding '' and no new account was opened ... 

So it's confusing how and when the account was opened. 

I contacted PayPal again. I was told the account was opened for me without any affirmative actions taken by me and it was opened for me ( re-branded by existing account for me ) due to Federal Regulations, which required the change. Allegedly PayPal sent me an email, sometimes between XX/XX/XXXX and XXXX, XXXX informing me about the change, which " officially went into affect on XX/XX/XXXX ''. 

PayPal can not send me a copy of the email, any application, confirmation of acceptance, or contract regarding the terms and condition of my alleged PayPal Cash Plus Account, yet PayPal insist that the PayPal Cash Plus Account terms and conditions are binding on me. 

PayPal stated " you did not have to apply. It was a rebranding based on if we had confirmed your identity already or not. It didn't change anything about your account beyond how we speak to your balance. It is now referred to as a Cash Plus Balance. Beyond that one change, nothing was changed. '' " It isn't a brand new account. Think of it like a store that goes through a remodel. Fresh coat of paint and it's like a new store ''. 

Yet another representative stated " PayPal Cash accounts are for customers who wish to keep money in PayPal [ so it's not rebranding the already existing PayPal account ]. Customers using PayPal Cash accounts will have access to basic balance functionality, including the ability to shop with balance, send money to friends and family using balance, receive money into balance, and set up a Money Pool. PayPal Cash Plus accounts are eligible for additional features like the PayPal Cash Mastercard, receiving paychecks via direct deposit, and setting organization tools like Goals. This was a change that happened to all PayPal accounts as there was a new regulations set by the government that we ill need these type of accounts to maintain a balance. '' Another PayPal rep said " The PayPal Cash account was created when a payment was received and the money was accepted and the option to keep the money in PayPal was chosen instead of transferring it a bank '' ( PayPal can not give me a date when did this allegedly happen ). 

On PayPal 's own website, PayPal states " Personal PayPal account holders also have the ability to get a PayPal Cash Plus account. You can get a PayPal Cash Plus account by applying for or enrolling in any of the features or products below : *Get the PayPal Cash Card Debit Mastercard ( or the PayPal Business Debit Mastercard ) ; *Set up direct deposit to  automatically add pay checks to balance ; *Set up Goals to manage money being held '' So it's neither rebranding, nor something you can accidentally create by keeping a balance on you PayPal account, but something you have to apply for by any of the three listed acts ... 

Yet, PayPal insist : " I have repeatedly informed you that I can not re-send an email from over a year ago. Your Cash Plus account was not " created '', it was changed just given a new name based on the level of identity confirmation that you had completed ''. 

I am confused if I should be guided by PayPal 's statement to the public posted on PayPal 's website, but the facts are the followings none the less. I, admittedly, have never enrolled or applied for PayPal Cash Plus account. I, admittedly, do not have a PayPal Cash Card Debit Mastercard. I, admittedly, do not have a direct deposit to automatically add pay checks to balance. I, admittedly, did not set up Goals to manage money being held. 

Yet, I have a PayPal Cash Plus account. 

I do not have a contract, yet PayPal insist that I am bind by the user agreement of a service I have never applied for and PayPal can not even resend me the alleged email, which triggered ( in one version of PayPal ) the opening of the PayPal Cash Plus account or pinpoint the transaction ( another version of PayPal ) through which I have created the PayPal Cash Plus account. There seemed to be a consensus that I have never applied to open the PayPal Cash Plus account. 

Now, this mysteriously opened PayPal Cash Plus account has an over {$3000.00} negative balance. 

The PayPal Cash Plus account allegedly serves as a " balance '' account. To use PayPal 's rep own words " PayPal Cash accounts are for customers who wish to keep money in PayPal. Customers using PayPal Cash accounts will have access to basic balance functionality, including the ability to shop with balance, send money to friends and family using balance, receive money into balance, and set up a Money Pool ''. 

Yet, there was a bill submitted by XXXX ( I don't have an XXXX  account and PayPal is a spinoff company of XXXX ), which bill was paid by PayPal immediately, without my consent, even though there was {$0.00} balance on by PayPal account and/or PayPal Cash Plus Account and none of the backup payment sources had sufficient funds to cover XXXX 's alleged bill. None the less, PayPal approved the transaction. 

My PayPal Cash Plus account ( for which I have never applied, enrolled, etc. and was allegedly created for me for the sole purpose to keep positive balance on it which then I can use for different purposes ) has now a negative balance of over {$3000.00}. 

II. Complaint 2 : Unauthorized Collection Practices. 

When I wanted to dispute the charge, PayPal told me that " On XX/XX/XXXX XXXX  billed you for the {$3200.00} refund through a billing agreement set up with XXXX on XX/XX/XXXX. '' PayPal is not a collection company for XXXX. 

XXXX has to verify the charge. 

I do not have an XXXX account, hence I can not have a " billing agreement '' with XXXX. If XXXX   can not validate the charge and I dispute the charge, PayPal should refund me the disputed amount and charge it only after validation or after a valid judgment by XXXX  against me regarding the dispute. 

Further, and once again, I allegedly had a " balance '' account with PayPal, which was " automatically '' created for by by " rebranding '' my existing PayPal personal account and could not have had a negative balance. 

PayPal should have refused the XXXX 's charge request as there was no money neither on my PayPal personal account, nor on my PayPal Cash Plus account, nor on any of the funding sources associated with my account. 

How can I have a credit account with a negative balance with PayPal when I never applied for such? 

How can I have a negative balance on a bill I dispute and never authorized? 

I don't thing that was CFPB 's requirement with what PayPal just complied with ... .. 

Moreover, before the account went into negative balance, I discovered that there was an " auto-pay '' authorization for XXXX in my PayPal account ( among with other XXXX XXXX   companies, such as XXXX, XXXX, XXXX, etc. ). I don't recall creating any of these so called " autopay '' intentionally and not sure how they are created but let 's not get into that. Anyway, as soon I discovered XXXX  listed on " autopay '' I removed XXXX. At the time there was no charge by XXXX  on my account. PayPal later claimed that the charge came before the " autopay '' removal ( even though it did not appear on my account ). 

Nonetheless, the " autopay '' assumes automatic payments of valid charges. 

This is not the case here. 

Again, PayPal is not ( or at least not supposed to be ) the collection company for XXXX. When XXXX  can not validate a charge and I dispute the charge, it should be denied until final dispute resolution between the alleged creditor and the alleged debtor. 

PayPal also argue that the charge was as a result of XXXX 's resolution in favor of buyer, but again, ( 1 ) I do not have an XXXX  account ; ( 2 ) I did not agree to XXXX 's dispute resolution procedures ; ( 3 ) I did not agree to accept XXXX 's " fact findings '' and I did not waived my Constitutional right to a jury trial in case of a civil dispute ; ( 4 ) there is no agreement between XXXX and me in any matter in any manner ; ( 5 ) I do not agree that XXXX  can bill me directly in case XXXX finds in buyer 's favor in a transaction I am not a part of ; ( 6 ) there is no billing or any other kind of agreement between XXXX and me so XXXX can not just " bill '' me ; ( 7 ) I am the sole owner of my PayPal account ; ( 8 ) there is no judgment or arbitration award against me in connection with any claimed debt I allegedly owe to XXXX  ; ( 9 ) there no judgment or arbitration award which would state the amount I allegedly owe to XXXX  ; ( 10 ) there is no levy order by a Court with competent jurisdiction, which would authorize PayPal to accept the charge as valid over my objection ; ( 11 ) there is no levy order by a Court with competent jurisdiction which would authorize PayPal to withdraw or withheld money without my authorization from any of my accounts ; ( 12 ) PayPal is my financial company, owes me fiduciary duties, not to XXXX. PayPal can not just deduct, pardon me, create an account for me in order to enable PayPal to approve an unauthorized XXXX  charge. To add insult to injury, initially I was told that I can not even dispute the charge ( later I was allowed to file a dispute which was decided in less than 24 hours in XXXX 's favor ). 

Last but not least, Pay Pal stated to at least another PayPal account holder who opened the account in XXXX ( information can be provided to CFPB upon request ) that opening PayPal Cash or PayPal Cash account is not automatic and that one has to apply for a card and that card has to be linked to the person 's PayPal account in order to open a PayPal Cash Plus account. 

I believe CFPB should investigate this matter as ( 1 ) PayPal attempts to validate its unlawful actions ( opening PayPal Cash Plus accounts to existing users without the existing user 's knowledge or agreement and then bend and twist the facts to serve PayPal purposes, including but not limited to misstate the scope and purposes of a PayPal Cash Plus balance account ) citing CFPB 's regulations as cause ; ( 2 ) PayPal is not a collection company for XXXX, thus should not act like one, especially when a debt verification is requested by PayPal 's own customer. The charge was either an unauthorized charge, thus XXXX should prove it's validity ( assuming that PayPal is my financial institution ) or the PayPal customer should at least have a right for debt verification ( assuming that PayPal is XXXX 's collection agency ). PayPal admittedly ( confirmed it in writing ) did not even contact XXXX  regarding the transaction. Neither to validate the alleged charge nor to validate the alleged debt.

Company response to consumer: Closed with explanation