I have been a Paypal customer (buying and selling) since at least XX/XX/XXXX. Recent events, see below, caused me to lose confidence in PaypaI and seriously question their ethics. Paypal, who by their own admission, put the money I received from a "buyer" on temporary hold, bringing my account to negative, while they are "investigating the claim. 

In the meantime, Paypal transferred around $5.20 unauthorized from my bank, calling it a "charge back". Paypal collections department has also harassed me 3 + so far to transfer the "funds", they have put on "temporary hold", while they are investigating this clearly fraudulent claim. I put a debit card lock on Paypal via my bank, who acknowledged that Paypal "is very bad". 

The buyer has not returned the item I sold her and which was delivered in good faith with USPS tracking information and insurance. And included in this "temporary hold" by Paypal, Is the USPS shipping and insurance . I put in a mail fraud claim against "buyer" and Paypal with the USPS OIG

I sold a  knitting machine to  "buyer" via one of my XXXX XXXX XXXX  groups. Said "buyer"  paid via Paypal and her business name "XXXX XXXX XXXX XXXX " on 
XX/XX/XXXX at XXXX XXXX PDT
See paypal confirmation: 
Transaction ID: XXXX
Payment Status: Completed
Payment Type: Personal Payment
Gross amount
$XXXX USD 

On XX/XX/XXXX Paypal informed me  that "buyer" canceled payment and put in a what I consider fraudulent claim against , see details and my response to Paypal resolution dept below:

Claim: Canceled preapproved payment
Paypal Case ID: XXXX
The buyer reported a charge for a canceled preapproved payment. Until this case is closed, we've also placed a hold on the transaction amount.
After reviewing the info we received, we were unable to cover the payment in this case. However, we might be able to recover this from the buyer's financial institution.

Once we file a case on your behalf with the buyer's financial institution, it could take up to 75 days to get a resolution. If we're able to recover the payment of $XXXX, we'll refund the money to your PayPal balance.

Case detailsView case history
Buyer information
XXXX XXXX XXXX XXXX Transaction amount
$XXXX
Transaction ID
XXXX
Disputed amount
$XXXX
Dispute reason
Canceled preapproved payment

Your (me, the seller's)  immediate response
Date of submission on XX/XX/XXXX

There is NO prearranged payment that would require cancellation. The buyer statement of submitting a cancellation is fraudulent. She bought and paid for a XXXX XXXX XXXX XXXX XXXX plus shipping and insurance on XX/XX/XXXX. This machine was delivered to her via USPS priority with tracking and she still owns it. She is therefore in possession of and owning this machine. There was not other charge and what she is stating is fraudulent. I did not invoice her again because she already had the machine and paid for it up front. She was also told that there will be not returns and in case of shipping damage, she is covered with USPS via the insurance she paid. I do not appreciate PayPal hijacking my money and there should be seller protection against such a fraudulent claim. In other words, now I am left without the machine I sold her and the money she paid for it, because PayPal took it from me. 

Open Cases and Requests - All Cases: XX/XX/XXXX to XX/XX/XXXX
Type	Counterparty	Transaction ID	Date	Amount	Reason	Filed On	Status	Details	Email
Dispute	XXXX XXXX XXXX XXXX	XXXX	XX/XX/XXXX	$XXXX USD	Recurring payment cancelled	XX/XX/XXXX	Open	XXXX

The following are My notes on Paypal's "actions" while "temporarily holding my account negative , are to receive calls and emails from Paypal collections department which I consider harassing and threatening to my sanity. It is extremely stressful.

XX/XX/XXXX 
XXXX XXXX
Paypal Collections Dept PC from XXXX or XXXX
Wanting me to pay the $ XXXX. Etc that I owe
AS PER PAYPAL NOTICE: you have a negative balance. Please transfer money to your account.
Available (estimated USD value)
-$XXXX USD
Manage currencies
			
I told the collections rep the history and that I will NOT pay any money that I dont owe. That its Paypals decision to hijack and make my account negative, while they are allegedly investigating this fraudulent claim. That I consider Paypals actions fraudulent and unfair as well, and I will spread it over Social Media if this issue is not fairly resolved

How is this my problem?
	XX/XX/XXXX Buyer ordered and paid for a XXXX XXXX XXXX XXXX. The machine was shipped and insured against postal damage  (proof exists in the from of pics, tracking and delivery confirmation) its exactly what she asked for
	XX/XX/XXXX or so Buyer wants to get her money back via a PayPal claim thats difficult to understand because it doesnt make any sense; 
	I have not received any notice from her of any kind and she never returned the knitting machine.
	USPS tracking confirms that it was delivered to her via Priority at address she provided
	My  response to Paypal is that this is a fraudulent claim under the circumstances, but they make my balance negative by $ XXXX while they investigate
	XX/XX/XXXX see my phone conv with Paypal collections dept
	To date I have not received the machine back from buyer, so I have double damage
	XX/XX/XXXX, doing my own investigation. No alleged XXXX XXXX XXXX XXXX has an internet presence. I alert all reachable XXXX knitting machine group moderators of buyer posturing as member , infiltrating our groups in order to defraud them
	XX/XX/XXXX I am in contact with buyer local DA to put in a fraud claim
Conclusion so far:
PayPal took it upon themselves to side with a fraudulent buyer by dinging my account with a charge back that I can ill afford. Thereby halting any moneys I can earn from sales, while they investigate

In their recent update, they basically admitted this was a fraudulent claim (buyer bought a perfect XXXX XX/XX/XXXX and on XX/XX/XXXX claims she didnt get what she ordered; Told Paypal this is a fraudulent claim. In the update They promised to investigate and it could take up to 75 days and theyll approach buyers bank for funds) 
XX/XX/XXXX

XX/XX/XXXX
I sent email to explain :
Paypal response: Email Us
Thanks for reaching out to us. Please select the topic and sub-topic that best match your reason for contacting us. If the topics and sub-topics do not match your question, go back to Step 1 and select another option.
Choose a topic

Another one of My emails to Paypal:
Your chargeback ie "temp hold" while you are "investigating" XXXX XXXX XXXX fraudulent claim. Be advised that I contest your attempt of extorting moneys from me on behalf of bringing my account up from negative, by having your collection department intimidate me into transferring moneys that I DO NOT owe. I also put in a complaint with USPS OIG for potential mailfraud formemost against XXXX XXXX since she never returned what she claims I owe her, and against Paypal for "holding" the shipping and insurance charges and trying to extort that amount from me. This isuue will now be investigated indepent and neutrally against Paypal and it's unfair practices. I also alerted my bank against Paypal illegally transferring moneys ($ XXXX to date), and they put a lock on my accounts. It is a shame that I must proceed against Paypal, I have totally lost confidence as a seller and buyer in Paypal, of which I have been a long time member. I will gladly provide additional info to speed up your investigation. 
BTW, XXXX XXXX received the knitting machine she ordered and paid for XX/XX/XXXX, delivered to her porch XX/XX/XXXX, XXXX, tracking # is Tracking Number: XXXX

In the meantime I received another threatening phone call from Paypal collections and the most recent email from Paypal collections, see their email and my notes on this one below:

From Paypal :
About your PayPal Account
1 message
PayPal  Thu, XX/XX/XXXX at XXXX XXXX
Reply-To: XXXX
To: XXXX
This message contains graphics. If you do not see the graphics, click here to view.
Dear XXXX XXXX,
This email contains important information about your PayPal account. Our records indicate
that your PayPal account has been negative for 22 days or more. The amount owed today
to resolve your negative balance is $XXXX.
You still have time to resolve this issue by contacting us directly or logging into your
PayPal Account today. However, further delays in resolving your account balance may
affect the availability of your PayPal account and could cause your account to be referred
to an outside Collection Agency.
Please log into your account at your earliest convenience and follow the steps outlined
below to resolve your negative balance.
1. Access your account at PayPal.com
2. Click the "Resolve your negative balance" link located next to your PayPal balance
3. Select the "Add funds to your account" option and click "Continue"
4. Select the "Add funds" option that best suits your needs and click "Continue"
5. Select your preferred payment method (Credit/Debit Card or Bank Account)
6. Enter the payment amount and click "Continue"
7. Click "Add Funds"
Were here to help. If you have any questions regarding this message or you are unable to
make a payment on your account, please contact us at XXXXto discuss your
options. We are available Monday through Friday from XXXX XXXX. to XXXX XXXX. Eastern. If you
have already resolved your balance, thank you and please disregard this message.
Sincerely,
PayPal
Do not reply to this email. Please send all messages through the email form on our website.
Copyright  XX/XX/XXXX-XX/XX/XXXX PayPal. All rights reserved.
XXXX - About your PayPal Account XXXX
1 of 1 XX/XX/XXXX, XXXX XXXX

XX/XX/XXXX XXXX XXXX
I called PayPal  collections dept XXXX in response to another one of their requests, their 3rd attempt (by email this time) to collect the money they say I owe. In it, they instruct as to how to transfer the owed funds to them.  

I was on hold, no one answered so I hung up by XXXX XXXX
 
All the above has been stated as true and correct to the best of my knowledge

I welcome any advise 
Sincerely

XXXX XXXX