Consumer complaint received 2023-09-20
Company: Paypal Holdings, Inc
State: LA
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Trouble accessing funds in your mobile or digital wallet

Complaint:
I opened a PayPal account and used it to pay for different things like XXXX rides, doordash, XXXX, and a few other things. I never kept a balance but I had my debit card linked to my account so when I paid with PayPal they would debit my card. I used my account like this for months. No problems what so ever. Then I sell my buddies dad a track saw. We each drive about an hour to meet up and make the transaction. He ends up forgetting to bring his wallet, so instead of rescheduling and wasting the trip we both made, he asks if I have PayPal. I told him I did so he sent me the money thru PayPal. They immediately put the 21 day hold on the money. Even tho my buddies XXXX called and told them he already had the saw and told them he agreed that he waived his right to dispute the transaction. They lied and told him I already had the money. He knew they were lying and even told them so. They doubled down telling him that I was in possession of the money so he didn't need to worry about it. I called PayPal and asked them why they would tell him that knowing good and well I couldn't touch the money for 21 days. So the XXXX day comes around and I get an email saying that my account was permanently frozen and that my money would be held for 180 days. So I contacted them and asked what it was about and why they waited months of letting me use my account but the second I get a few XXXX dollars in there they decide I did something wrong. They're so full of it. They claimed I violated their user policy by logging in using a VPN or anonymizer app as they call it. Once again they are full of it. I've never logged in using anything like that. They then tell me that they have another account with the same name and address that owes the money. Now by this time I've done verified my identity with them twice while my account was still working. They had no problem with it I let them know that I had my identity stolen and that that isn't my account that owes them money. They never got the social security number for that account tho. Anyone can use a someone else 's name and address and make a PayPal account but they couldn't prove it was me. Because it wasn't my account. So at this point the XXXX or supervisor or whatever sends me an email trying to explain why I can't get my money out for 180 days. Then proceeds to blackmail me saying " well if you were to take care of the account that owes us money we could get your money release to you. So they're blackmailing me to try and get pay off an account I don't own just to get my money back from them. Very unprofessional PayPal. See what PayPal does is when you keep your money in your PayPal account it's earning interests. So by freezing accounts with a couple XXXX dollars in it they are making millions in interest. Because when you sign up you sign away your right to the interest your money is making them. How they are still allowed to do this is beyond me. I guess they make more money stealing people 's money y than they lose in the court cases they keep losing. I want this to be investigated and PayPal to be held accountable.

Company response to consumer: Closed with explanation