Consumer complaint received 2017-06-19
Company: Paypal Holdings, Inc
State: FL
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Confusing or missing disclosures

Complaint:
I am responding to a previous response to my previous complaint as it contains inaccurate information, here is what paypal sent via CFPB in response to my previous complaint : -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - Company 's Response Response : On  XX/XX/XXXX , you created a PayPal account ( Account ) at which time you agreed to PayPals user agreemen t (  User Agreement ). On the same day, you provided your  XXXX   XXXX   XXXX  checking account ( Bank Account ) information to PayPal to use as a funding source and for withdrawals from your Account. On  XX/XX/XXXX , you applied for a  PayPal Business Debit Card  ( " Debit Card '' ) for your Account. Your application was approved on  XX/XX/XXXX . Subsequently, the  Debit Card  was sent to you vi a US M ail ; and you activated the card on  XX/XX/XXXX . In order to prevent fraud and help ensure the safety of the  PayPal system, PayPal  routinely reviews account activity. On  XX/XX/XXXX , a review of your Account identified the potentially suspicious activity of adding funds to your Account via a PayPal Cash prepaid card (  " PayPal Cash '' ) an d then exiting those funds via withdrawals to your Bank Account. As a result, we limited your Account as permitted under the  Restricted A ctivities & Holds section of the User Agreement. At that time, we notified you of this action through email and requested that you explain your activity via affidavit. On  XX/XX/XXXX , you completed the affidavit ; and, as a result, we restored access to your Account. Between  XX/XX/XXXX , and  XX/XX/XXXX , you added a total of {$1000.00} to your Account via  PayPal Cash. Duri ng that same timeframe, you continued to exit those funds via withdrawals to your Bank Account, and for purchases using your  Debit Card.  Because you continued to use PayPal Cash cards, your Bank Account, and your Debit Card in a suspicious manner, after having received a prior warning, we permanently limited your Account on  XX/XX/XXXX . As provided in the Restricted Activities & Holds section of the User Agreement,  PayPal may  suspend, or limit access to your Account or  PayPal  services if we believe that you  may  have engaged in any Restricted Activities. Because the activity on your Account was consistent with potentially illegal activiti es, Pa  yPal considers this a Restricted Activity ;  and we reasonably believed a limitation was necessary to prevent further violations. Therefore, we will not be restoring access to your Account. Further, pursuant to the Restricted Activities & Holds section of the User Agreement,  PayPal may  hold your Account balance for up to 180 days if reasonably needed to protect against the risk of liability. Nonetheless,  PayPal r eleased your remaining Account balance of {$5.00} on  XX/XX/XXXX . On the same day, you withdrew your Account balance to your Bank Account. Please note that  PayPal  must be in a position to protect its interests in relation to limited accounts. The regulatory and legitimate interests of  PayPal, a s they relate to the retention of user records, compel us not to close an account if it is not in good standing. Therefore, we are declining your request to close your Account. Explanation o f Closure :   We believe th at PayPal acted in good faith and in accordance with the User Agreement  when denying you access to our services as a reasonable measure to maintain the security of  PayPal 's  system. As your Account is not in good standing, we are not closing the Account or restoring access to the Account.  PayPal  considers this matter resolved, as we made your funds available for you to withdraw on  XX/XX/XXXX . Please feel free to contact me should you have any questions or concerns, or if I can be of further assistance to you.   DESCRIPTION OF NON-MONETARY RELIEF Description of Relief :  PayPal rel eased your remaining Account balance of {$5.00} on  XX/XX/XXXX . On the same day, you withdrew your Account balance to your Bank Account.  <P/> -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- SPECIFICALLY, THE FOLLOWING IS INACCURATE : " At that time, we notified you of this action through email and requested that you explain your activity via affidavit. On XX/XX/XXXX , you completed the affidavit ; and, as a result, we restored access to your Account. Between  XX/XX/XXXX , and  XX/XX/XXXX , you added a total of {$1000.00} to your Account via  PayPal Cash.  During that same timeframe, you continued to exit those funds via withdrawals to your Bank Account, and for purchases using yo ur Debit Card. B ecause you continued to use PayPal Cash cards, your Bank Account, and your Debit Card in a suspicious manner, after having received a prior warning, we permanently limited your Account on  XX/XX/XXXX . '' -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - At no point was I told that this behavior was putting my account at risk of permanent limitation, the only notification I got was that they needed to know what the funds would be used for, which I explained entirely, my account was restored with no problem. A large portion of the funds I place into my account are withdrawn because I am unable to make payments on my credit cards without withdrawing the money to my bank account because Paypal does not furnish me with a routing or account number necessary to do so. I was merely asked to explain what I was using the money for and explained by responding to them. In addition, at no point was the request for an explanation referred to as an affidavit until now. I have been extremely forward with  Paypal  and revealed extensive personal details about my entire life going back several years and explained the use of all the money in question when asked. In addition to this, the person who gave me the cash to deposit into my account on both occasions, my partner, has sent messages to paypal attempting to confirm that they are the source of these deposits and the reasoning behind them.  <P/> In any regards, the communication with me regarding the cash deposits/withdrawal to my bank was misleading and incomplete and  PayPal i s entirely miscategorizing it in their response to my previous complaint. At no point in the entire situation was I made aware of any issue with withdrawing to my bank account ( the only thing that was sent to me was specifically referring to the cash deposits into my  PayPal,  my withdraws to my bank were never mentioned in any form ) and at no point was I informed that making use of the cash deposit and then withdrawing it to my bank account to pay bills in this manner again in the future would put my account at risk. Nothing  in Paypal 's  terms of service makes any specific mention of this behavior either. There is no mention of using  PayPal  in this manner in the  Restricted A ctivities & Holds sections whatsoever. The only reason I ever used this service is because its repeatedly advertised all over  Paypal 's  app as a convenient way to deposit cash -- my   XXXX   XXXX    does not have a branch any closer than  40 mi nutes away and following the advertising o f PayPal Cash  which bills is at a convenient way to deposit cash without having to go to the bank, I utilized it for exactly that purpose.

Company response to consumer: Closed with explanation