Consumer complaint received 2020-10-07
Company: Paypal Holdings, Inc
State: NY
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Trouble using your card
Sub-issue: Can't use card to make purchases

Complaint:
I got approved for a Paypal Credit limit of {$3800.00}, I verified my identity as requested by Paypal, uploaded my driver 's license to approve use of the Paypal account. It was advertised on XXXX  sites, and many other sites, to " use Paypal Credit for anything, offering 6 months financing no interest for any purchases ''. So I applied, got approved, and tried to make a simple purchase where Paypal is accepted, and I am unable to use Paypal Credit that I got approved for, it was a simple {$20.00} XXXX  purchase. Spoke to Paypal rep, they keep saying that the automated system, may have detected a risk in your purchase and  decided to block paypal credit as a payment method. I ask, " risk '' what risk? im making a simple small purchase, of {$20.00}, what risk is your flawed system detecting. Then im thinking its like a credit card company, that may need verification of identity or social security, and every single Paypal representative tells me, once security systems initiates a block, we can not remove it or override it, and we don't know how long the block will stay ''. I'm like how is that possible, every bank would have an override if we can determine there is an error or flaw. They said no, just wait and try the transaction again later, which I did after few days, still same issue. I kept asking how long do i have to wait to use the credit limit i was rightfully granted, they said we don't know. Im thinking, what XXXX  system of theirs, detects {$20.00} purchase as risk. They have no right to detect risk, becuase the issuer of Paypal credit is XXXX   XXXX, and they are holding the credit line, and they are assuming the  risk, Paypal takes zero risk here, so what the XXXX are they talking about? 

Anyways long story short, no matter hwo long I wait I can never use my paypal credit for any site not even for {$1.00}, just lingering XXXX balance credit card I have. I have XXXX credit score, $ XXXX income, 6 other credit cards, and a house and over 18 years of credit history. Im pretty sure, my history of perfect on time paying credit history would be PROOF that there is no risk with my right to use my credit limit granted to me by XXXX  XXXX. XXXX  XXXX  told me they cant do anything until Paypal system releases the block, which is determined by an automated system, that LITERALLY noone can defy, which is XXXX  thing i've ever heard. Everyone knows, even machines can have flaws. There are  pages and pages of this same issue with thousands of people, who got approved for paypal credit since 2017. You can read the Community forums of others having same UNLAWFUL issue. ( https :  //www.paypal-community.com/t5/PayPal-Credit/PayPal-Credit-Not-working-for-anything/td-p/1179780 ) According to the Credit Cardholders Bill of Rights , no one can deny fairness of use of credit limit, meaning if i have {$3800.00} limit, i'm allowed to use the full  {$3800.00} granted to me, it is the Bank that XXXX the risk, not the XXXX  company Paypal, my credit history acts as proof that I am credit worthy to use the limit granted to me. the Bank and The Credit Bureaus determine the risk, not the subsidiary company such as Paypal, they clearly have a FLAWED automated system proven by me and many others. and this MUST be fixed.

I believe you can take these community forums and research more of these unlawful issues, and I truly believe there can be a class action lawsuit brought against Paypal, for not providing a valid reason for blocking access to granted credit limit, making me have a hard credit inquiry dropping scor eby 4 points, and cant use it at all. EVER!

Company response to consumer: Closed with explanation