Consumer complaint received 2021-03-22
Company: Paypal Holdings, Inc
State: MD
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account

Complaint:
In mid XXXX I tried to perform a few activities via PayPal and found my account was locked. When I looked into it I had an alert that stated the following : " We noticed that you've been using your PayPal account in a questionable manner. To understand this better, we will require some information from you. 

In an effort to keep your account secure, we've also limited certain features in your account. You'll be able to regain access to these features once you provide the information we've requested. '' The information PayPal was requesting is as follows : Upload a photo ID Provide proof of your address Provide information on account activity Submit your bank statement In an era of heightened security awareness and sensitivity to Private Personal Information ( PPI ) being tossed about online, I am very opposed to providing PayPal, a simple financial transfer agent/middleman and not a bank, the requested information. It is completely unwarranted, unjustified and overreach. This company already has my social security number, personal address and my bank account on file. To ask for additional personal information about my identity and the ability to have insight into my financial business ( how I spend my money ) is completely unreasonable and in my opinion overreach. 

This is a key activity we as online consumers should be protected against. 

So, finding contact information on PayPal to speak to someone live is difficult, so I started with their chat service on or around XX/XX/XXXX looking for an explanation into my " questionable '' activities. But as that chat is not manned or answered promptly a few days of correspondence went back and forth with little explanation or resolution. 

Finally I found a customer support phone number and was able to speak to a live person on or around the first week of XXXX. I explained my reservation for sending information and asked for the specifics around my " questionable '' activities so we could clear it up. Their first explanation was a transaction that occurred mid XXXX. This was a monthly transaction I receive from my roommate and I had them look back and verify the standard monthly contribution, which they did. Following, as a second excuse, they said I had too many devices logging into my account. I do have multiple devices that I access PayPal through, as does everyone. 

They continued to refuse to unlock my account unless I provided them with the requested PPI, which I refused. I then escalated two levels up the management chain while on the phone for almost three hours explaining my reservations on providing PPI, reverifying the information they are concerned about, and requesting my account be unlocked, which they refused. 

I've been a customer of theirs since the early XXXX, without incident. PayPal is not mandating this request to all their customers, and have singled me out, unfairly, without clear explanation or resolution options. They are holding my money in the account hostage unless I provide the requested PPI documentation, not allowing me to withdrawal or utilize my funds for traditional purposes. Their only workaround is my waiting 180 days until I was told the account will unlock itself ...? 

I looked through some of the Community comments posted on the PayPal site and you'll see this is a larger issue with many similar concerns/complaints.

Company response to consumer: Closed with non-monetary relief