Consumer complaint received 2022-07-24
Company: Paypal Holdings, Inc
State: CA
Product: Debt collection
Sub-product: Other debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
I am XXXX XXXX, author, editor, and publisher. 
XX/XX/2022- XXXX XXXX ( no relation to me ) is a referral to my company for an editing project for her chapter in an upcoming compilation, on. She called to request my rate for the project. I quoted {$400.00}, and she agreed, stating that she wanted the edits tracked. 
XX/XX/2022 XXXX XXXX sent the chapter she wanted me to edit. I sent a PayPal invoice for {$400.00} payable upfront, non-refundable, to her at XXXX. She paid the invoice upon receipt of the invoice. I logged into my account to confirm her payment. PayPal payment of {$400.00} minus {$14.00} fees totaled {$380.00}. I began editing immediately and working into the early morning of XX/XX/2022. 
XX/XX/2022 I sent two files to XXXX XXXX, one with the tracked changes and one clean completed file. Both are attached ). 
XX/XX/2022 I received confirmation that the client was happy with my work and transferred the money from PayPal to my bank account. 
XX/XX/2022 I received an email from PayPal XXXX that XXXX XXXX claimed that she never authorized this payment and is filing a dispute [ XXXX ID XXXX XXXX XXXX {$400.00} ; Date : XX/XX/2022 ]. They credited my account for {$400.00} and requested that I repay the money. 
XX/XX/2022 I called XXXX XXXX to ask why she filed a dispute and learned that she did not. She was happy with my work, and the payment had cleared her bank with no issues. I responded to PayPal that I did the job, and the client did not file this dispute. PayPal said any further action was for me to take up with the client. XXXX called PayPal to inform them that she did not file any conflict and that PayPal would not speak to her. 
XX/XX/2022 XXXX texted again that she did not have any luck convincing PayPal that she did not file any dispute and again confirmed that everything had cleared her bank without issue. She sent the attached confirmation from her bank. 
With no further recourse, I called XXXX XXXX for advice on how to handle this issue against my business and reputation, as PayPal was my primary invoicing tool for my work, and this false credit impacts future client payments on my account. 
XX/XX/2022 - Since XXXX XXXX and I are both XXXX XXXX clients ; they explained that they would have to refer the issue to an outside attorney in their network. Accordingly, they referred me to an attorney, with who I left a voicemail with his office. 
XX/XX/2022 The attorney told me to send him the details in an email. He sent a demand letter to PayPal XXXX XXXX and instructed me to upload it online into my account as a response to this dispute. 
XX/XX/2022 PayPal responded by adding a {$15.00} fee to the outstanding credit balance for referring the issue to a lawyer. I called the lawyer for further advice. He told me I was not his client and that I should direct any other legal advice to XXXX XXXX. 
XX/XX/2022 I called XXXX XXXX and was referred to a 2nd lawyer, who neglected to inform me that he was too busy to address my issue. I didnt realize this until I called, left several messages, and got a response from him on XX/XX/2022, XXXX XXXX Apologies for the delay. Regards. 
***According to the CFPB.gov site, the debt collector generally must stop contacting you and must contact the attorney instead. 
PayPal sent emails to me on XX/XX/XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, and XXXX, requesting me to resolve the negative balance, and when they did not send emails, they sent texts to my phone. 
XXXX XXXX I called XXXX XXXX again and was again referred to a 3rd lawyer. I called, left messages, and on XX/XX/2022, this lawyer asked where I lived and what the issue was, didnt wait for the complete answer, and kindly let me know that he is older, not familiar with PayPal or any of their practices, and cant help me. '' XX/XX/2022 PayPal transferred my account to a collection Agency, XXXX XXXX XXXX XXXX. 
XX/XX/2022 I received a collection notice from XXXX XXXX XXXX XXXX. I have checked the box that I dispute that this is not my debt and am sending a certified letter to them to cease contacting me and alert the credit bureaus that this is not my debt. 
Since receiving the collection letter, I have been referred to a 4th lawyer, feel very upset that my business has suffered a loss of clients, and learned from many of my peers that PayPal has routinely targeted XXXX entrepreneurs in this same thing to them as well. Therefore, I've decided that I need your help.

Company response to consumer: Closed with monetary relief