Consumer complaint received 2023-02-14
Company: Paypal Holdings, Inc
State: MI
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Fraud or scam

Complaint:
I am submitting a complaint on PayPal Holdings , Inc. XXXX XXXX XXXX California XXXX XXXX XXXX 

I recently had family and friends sending me through Paypal on XX/XX/XXXX. After receiving multiple payments totaling {$24000.00} in PayPal, I attempted to transfer it to my bank and PayPal would not let me. They requested I submit proof of ID, bank statements, and utility bill for proof of address verification and after everything was submitted they " Permanently Limited '' my account. The people that sent me money also verified with their ID as well through PayPal and it still did not make any impact. I requested more information through email multiple times and I did not receive a response back. I also called them various times throughout the last few weeks and they said they did not have any further information on the Permanent Limitation and I will have to wait 180 days for them to release funds and that there is a chance I do not receive the money back at all. 

I have used PayPal since XXXX of XXXX and have never once violated their User Policy. PayPal has a widespread business practices of unilaterally seizing funds from client 's finical accounts, without cause and without any fair or due process. PayPal has failed to inform me for the actions PayPal has taken, and even told me I " will have to get a subpoena '' to learn the simple information as to why PayPal is holding, and denying access to their own money. 

PayPal excuses its unlawful XXXX based on the alleged violation of its Acceptable Use Policy, without stating in what way my PayPal account has violated the AUP.

PayPal 's application of an unlawful and unenforceable liquidated damages clause, which is a contract of adhesion, without any casual connection to any damages PayPal actually suffered, as a justification for its holding and seizing funds from my account is inequitable and unconscionable, amounting to nothing less than holding funds which do not belong to PayPal.

Paypal violates its own Agreement by failing to provide adequate notice to users whose accounts have had holds placed on them. When PayPal informs individuals whose funds are being held of the holds, it does not inform such users why such funds are being held, how they can obtain a release of the hold, and/or how they can avoid future holds being placed on their accounts. 

The Agreement requires PayPal to, at a minimum, provide notice to such users of any hold placed on their accounts that includes both the reason for the hold and an opportunity to request restoration of access to the held funds. PayPal 's " notice '' falls far short of what is required. As a result, Plaintiffs have no idea why their money is " held '' by PayPal. It is common that PayPal seizes the money permanently after the 180-day hold period ends, without notice and without explanation. PayPals user agreement and acceptable use policy can not be used as a license to steal. There is no equitable or legal argument which condones theft. 

I hope you can help me recover my funds. Thank you CFPB!

Company response to consumer: Closed with explanation