Consumer complaint received 2016-08-01
Company: Paypal Holdings, Inc
State: MI
Product: Money transfers
Sub-product: Domestic (US) money transfer
Issue: Other transaction issues

Complaint:
Paypal is holding my funds ( over {$2300.00} ) without any legitimate reasons. Seriously jeopardizing a business relationship and event scheduled for XXXX XXXX, 2016. My eBay and Paypal account has always been in great standing, as a matter of fact, my eBay account has a perfect track record. Moreover, my account has been running for approx. 2 yrs, Paypal has previously verified my account, my address and all my previous business transactions. However, after my latest transaction for a total of {$5500.00} ( invoiced in XXXX payments ), Paypal mysteriously placed a XXXX hold requesting information IMPOSSIBLE to provide. I am attempting to rent a large lot for the XXXX XXXX XXXX, which my family owns. Paypal, demands proof of delivery of item, yet their is NO " item '' I followed the PAYPAL policy to a tee, by clearly describing the transaction in the invoice. ( attached ) I am including all the invoices Paypal has demanded proof of delivery, and the address of location displaying the family name of " XXXX '' XXXX XXXX XXXX owns the business, I have also provided Paypal with my daughters FB page confirming her last name and the obvious relationship. Further, there is no " High Level '' of risk '' as the purchaser has not placed any concerns nor has the bank which authorized the transaction. Additionally, Paypal initially approved the transfer of funds, then later cancelled that transfer. 
According to Paypal 's own actions, paypal is confirming the security procedures they impliment are severely flawed, which they themselves claim is NOT flawed, therefore, violating the terms of our contract by placing more risk to consumers. Think of it : Paypal has verified me, my address, my identity, my bank accounts and my Paypal account allowing me to continue with similar transaction for years. 
Additionally, Paypal 's actions violate the terms of the class action ( which I did opt-out of ) That they recently settled. I find it incredible, Paypal continues the identical practices. 
Here is an example of legal complaint i will have my attorney file as another class action : FACTUAL BACKGROUND 1. PAYPAL has placed a 180 day hold on my funds as they continue to place a " holds '' on Consumer 's ' own funds in their own PayPal accounts. PayPal fails to inform consumers and myself of the reason ( s ) for the actions PayPal has taken, even telling Consumers " have to get a subpoena '' to learn the simple information as to why PayPal is holding, and denying my/their access to, our own money. 

2. Paypal 's apparent justification for these 180 day expropriations is an expansive interpretation of a provision of the Paypal User Agreement ( the " Agreement '' ) which allows them " in its sole discretion '' to place a " Reserve '' on funds held in certain types of accounts where Paypal believes that there " may be a high level of risk associated with our/your account. '' 3. However, Paypal violates its own agreement by imposing the holds on mine/users ' accounts where it has no reason to believe there is a " high level of risk '' associated with mine and/or users account or transactions. 
Paypal further violates its own Agreement by failing to provide adequate notice to me or users ' whose accounts have had holds placed on them. When Paypal informed me and other individuals ' whose funds are being held of the holds, it does not inform us why such funds are being held, how they can reasonably 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 holds 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, I nor other consumer 's have no idea why our money is " held '' by Paypal.

Company response to consumer: Closed with explanation