Consumer complaint received 2015-04-15
Company: Paypal Holdings, Inc
State: NY
Product: Money transfers
Sub-product: Domestic (US) money transfer
Issue: Other transaction issues

Complaint:
On XXXX XXXX 2015 I when online into my Paypal account and initiated a transfer of {$230.00} from XXXX of my XXXX linked external accounts, a savings account at XXXX XXXX Bank. Ultimately I wanted to send this money to my sons account with Paypal. Each day I checked the balance on my Paypal account which was {$0.00} until I checked on XXXX XXXX XXXX, when the balance showed as {$230.00}. So I initiated a transfer of these funds from my Paypal account to my sons paypal account. Later that day I happened to be on line looking at my XXXX XXXX Accounts and I noticed that the {$230.00} had been taken from my savings account but had also been taken from my checking account. I was upset because I had instructed the {$230.00} to only come out of my savings and did not know why the {$230.00} was also taken from my checking account. Luckily this {$230.00} coming out of my checking account without my knowledge could have resulted in an overdraw but did n't. When I called Paypal the representative told me that they took the XXXX {$230.00} because the original {$230.00} had n't actually cleared when I initiated the transfer to my son. I asked if the {$230.00} had n't yet cleared from my XXXX XXXX Account savings account, based on my transfer on XXXX XXXX, then why did Paypal show that I had a {$230.00} available balance. I also wanted to know how did Paypal then manage to get the second {$230.00} from my XXXX XXXX Checking on the same day, and why did n't they take the XXXX {$230.00} from my savings account and not my checking, all without my prior approval or even notification. The rep did not have an answer so I asked to be transferred to a supervisor, which he said he would do. I waited on the phone in a queue for quite a while and then was cut off and hung up on. I called again later in the day and spoke to a Paypal Supervisor, XXXX, in their office in the XXXX. He agreed that it was a problem that the system showed the funds as being available and then let me transfer the money, and that it was a problem that the second {$230.00} was taken without my approval. He said that he was submitting a trouble/problem ticket and that I will receive an email acknowledging this. I never received an email so I went on line and submitted an online email complaint. I received the email shown below so I responded saying that I would have to file a complaint with a regulatory agency. 
In my opinion I think that it should be illegal for Paypal to take any funds from XXXX of my linked accounts without first getting my approval or at a minimum notifying me. 
Dear XXXX XXXX, My name is XXXX and I am a Supervisor with PayPal 's Customer Solutions Department. I appreciate this opportunity to respond to your concerns. 
I attempted to contact you directly on XXXX XXXX, 2015 at XXXX Central Time, but was unable to reach you at that time. I wanted to follow up with you regarding your phone call to PayPal on XXXX XXXX, 2015. 
A review of your PayPal account shows that on XXXX XXXX, 2015, you made a payment to XXXX XXXX. I do understand that you intended the transfer to come from your account balance. The balance was not added to your PayPal account until XXXX XXXX, 2015 at XXXX Pacific Time . The withdrawal initiated to your bank account for {$230.00} shows that it has completed to your bank account. 
I offer my sincere apologies for the difficulty that you have experienced and hope this information addresses your concerns and answers any questions you may have had. You can contact PayPal 's Customer Solutions Department at XXXX if you have any questions or concerns or if we can be of further assistance. 
You can find additional information and tips about buying and selling safely on our Business Resource Center at XXXX 
Very sincerely yours, XXXXCustomer Solutions Supervisor

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation