Consumer complaint received 2023-01-02
Company: Paypal Holdings, Inc
State: FL
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem

Complaint:
On XX/XX/2022, an invoice was submitted to my consumer PayPal account in the amount of {$610.00} from someone named XXXX XXXX in reference to " XXXX XXXX ''. I do not know anyone named XXXX XXXX and I certainly did not engage in any transaction related to " XXXX XXXX ''. Upon receiving an email from PayPal today that if I did not take action, the transaction would be approved for withdrawal, I logged into my PayPal account, clicked on the invoice for details, and received an error message. I can not inspect the invoice. 

So, I attempted to report the transaction as unauthorized using the PayPal Resolution Center, but when I walk through the steps, I receive this error message : " Were sorry, you cant file a case on this type of transaction. Please refer to our User Agreement for more details. '' When I referred to the User Agreement, it told me to contact customer support by calling ( XXXX ) XXXX - which I did- but their message system does not enable human contact. I can not report the transaction as unauthorized. So, I tried to report it using their online chat system, but this proved to be a robo-chat system that likewise refuses communication with a human customer service representative. 

I tried to remove all three methods of payment on file with PayPal, but PayPal refuses to permit me to remove the one with the pending unauthorized transaction. I sent two emails to PayPal, one to XXXX and another to XXXX. I've receive auto-replies, but not customer support. The auto-reply notifies me to contact my bank if I think there is an unauthorized transaction. Consequently, I did contact BOA and altogether cancelled the card for which the fraudulent transaction is pending. However, it's likely the charge will be passed along to the new card that will be issued. 

I am a XXXX XXXX and I actually specialize in representing fintech companies. The lack of meaningful customer service completely plagues money transmitter companies resulting in rampant fraud that money transmitters pass on to banks, and this results in higher banking costs to the banks and to consumers. If PayPal is doing this to me, then they are doing it to tens of thousands of consumers. This behavior is prohibited by the GLBA and, per regulation P, is the responsibility of the CFPB to address - and it can do so via the enforcement of the GLBA safeguards rule that requires an adequate written information security program that addresses this deficiency. I want to see PayPal held personally financially liable for ripping off consumers by refusing adequate customer service and means to address fraud on consumer accounts, and I want to see them be forced to implement changes recently enforced on XXXX and other money transmitters in the crypto-industry. Those changes helped, and there's no reason why PayPal shouldn't be held to the same standards. 

Sincerely, XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation