Consumer complaint received 2019-11-24
Company: Paypal Holdings, Inc
State: MI
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Other transaction problem

Complaint:
Hi, I was given your contact information from a case manager,  XXXX XXXX, from XXXX XXXX XXXX XXXX - Michigan 's Congresswoman. This email would be regarding a complaint that I have for PayPal who are currently holding my funds which are essential in running my small business due to a permanent block that they have placed on my account ( Case # XXXX XXXX. 

This all started when I was conducting my business transactions with them until I received an email stating that there is a temporary block on my account as they have listed a few transactions in which they wanted to verify that the products that I sold to the customers are being delivered to them. After providing all the necessary documentation which includes their order numbers, tracking information and estimates of their delivery, their customer service representative mentioned that they would expect my account to be re-opened sometime the following week. However, that following week, I received a different email stating that my account is permanently blocked due to what PayPal believes is a risky business model. 

To determine exactly what this risky business model is, I contacted their customer service and received very limited information and also some lies were also stated by their team. They did not provide any evidence as to why my business is considered risky and they will not release my funds until 180 days and would not even continue doing business with me. 

Most of my customers ' orders have been delivered in a timely fashion and all the customers are also happy with their products. As per the current statistics, 947 orders were made, and 500 of them were made in PayPal, and I delivered more than 50 % of my orders up to now, and the others are on the way. I can provide any documentation with evidence stating this, and also know that my business model is not risky, as I sell XXXX XXXX XXXX, which are not part of any restricted items which PayPals services have in their User Service Acceptance fine print policy. 

I need an answer to know why my business is risky and they can not keep my money without providing an answer. I have been using my personal savings to ensure that each customer would get their products on-time, but I can not keep doing this going forward. Ive gathered all my savings from working at XXXX, XXXX XXXX  XXXX XXXX and XXXX XXXX XXXX, and also from my current job. I have had the honor of serving the XXXX of Michigan with all the relevant background checks being performed by the FBI and they still are accusing me of having a risky business. If my customers are satisfied with their orders and I am delivering what I promised, how can my business model be risky? I need an answer which I havent received yet. 
I need your help in getting to the bottom of this and assist in getting my account re-opened. I wanted to use the funds to eventually one day grow my business in Michigan, and with the current situation, I might be forced to close it. Based on the research Ive had, PayPal has done this to many small businesses, and they are not responsive to small businesses with limited funds. I believe if I was a big corporation they would listen. So, the only way, I can get my voice heard is with your assistance. Please help me. 

Best Regards, XXXX XXXX XXXX XXXX  XXXX XXXX ( XXXX XXXX XXXX

Company response to consumer: Closed with explanation