Consumer complaint received 2017-08-04
Company: Paypal Holdings, Inc
State: GA
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
Greetings, I am XXXX XXXX XXXX Secured Party and Authorized Representative of XXXX XXXX XXXX On XXXX XXXX, 2017, after having my identity verified by PayPal ( as well as informing PayPal that this is a Trust account ) I linked my PayPal account to a XXXX XXXX XXXX XXXX XXXX in the name and identifying the PayPal account. My first transaction was a withdrawal in the amount of {$1000.00} to my PayPal account. I was informed it would take 3-5 business days.number ( SSN ) I use in XXXX XXXX XXXX/XXXX.
Once the account was established I began to transact with PayPal by using the XXXX XXXX XXXX XXXX as a Primary funding source.
I decided to shop online for a much needed replacement for my laptop. I placed an order with HSN after adding PayPal as a payment method. Upon completion of the order the transaction was reversed and access to the account was limited for no apparent reason. A decision made by PayPal ( I would soon find ), along with a note that I would need to contact them ( PayPal ). Once I contact PayPal I asked for the Reasons Code. I was told by one representative that the system wouldnt give specific reasons as to why the transaction is being denied and was then told to try another online merchant. So I make the transaction with XXXX and the transaction was completed. At that time PayPal notifies me that I can no longer use PayPal as my account was permanently limited until I contact them.
Afterward PayPal contacts me and ask if I could show them a bank statement from the account. And I remind PayPal that this is a Trust account and I am only a Beneficiary ( same as I told PayPal when verifying the linking of the account. ) My identity was verified by Telephone # and address associated with the PayPal account. Both accounts have the same name and identifying number.
On one call I was assisted by XXXX XXXX only to be told the same the system wont give specific reasons as to why my transactions are being denied. I then ask PayPal if I could send them Proof of Title ( Authenticated Birth Certificate, Social Security Card, Affidavit of Counter Deed of Birth Certificate ). They kept referring to their systems lack of a reason for my declines.
On XXXX XXXX, 2017, the order from XXXX arrives and there are no complaints from the buyer not getting his/her payment. The buyer from XXXX sends me an offer for a coupon on XXXX XXXX, 2017, and says nothing about a lack of funds or anything else.
On XXXX XXXX, 2017 I receive an email from PayPal saying that I owe them for a transaction in the amount of {$250.00} for a transaction with XXXX that took place after the account was restricted/limited. Saying that the transaction was declined by the XXXX XXXX XXXX and that PayPal covered the cost to the seller. But, I dont see how that is possible when the XXXX was the primary funding source of the account.
On XXXX XXXX, 2017 I received another email from XXXX with ( PayPals Office Executive Escalations ) saying that the XXXX XXXX  contacted them and told them they have a memo out for fraud alert and not to link any XXXX XXXX XXXX to PayPal accounts. PayPal says the XXXX told them the accounts do not exist. If that were true and the accounts didnt exist how could they link to PayPal? With all of the security making up PayPals system no safeguards preventing the linking of banks to their accounts that dont exist? Then the email says I could have access to the account after paying the alleged debt. But mention nothing of the three ( 3 ) {$1000.00} XXXX XXXX  Dollar withdrawals I made from the XXXX. The Primary funding source of the account.
QUESTION : How can the XXXX XXXX decline a payment order made to an account that doesnt exist????
It is painfully obvious that PayPal has not been totally forthcoming with me about the events that have taken place. All one has to do is review the XXXX XXXX  XXXX Operating Circular # XXXX XXXX XXXX ( XXXX ) and its references to Article XXXX ( UCC ) to see the true nature of ACH debit/credit transactions explained in the Uniform Commercial Code, ( XXXX XXXX XXXX XXXX XXXX ) and the Federal Reserves Operating Circular # XXXX to see that PayPal is partaking in Financial Fraud which equal to Economic Genocide.

Company response to consumer: Closed with explanation