Consumer complaint received 2024-10-19
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: SYNCHRONY FINANCIAL (MN)

Dear CFPB, I am submitting this new complaint regarding an unresolved issue with PayPals handling of a {$7100.00} payment I made on XX/XX/year>, toward my PayPal XXXX Mastercard balance. This issue was previously addressed in my original complaint, CFPB Case Number XXXX, but has yet to be fully resolved Subject : Rebuttal to PayPals Response and Request for Clarification on Payment Discrepancy and Bank Response XXXX CFPB Case Number : XXXX Dear CFPB, I am submitting this rebuttal in response to PayPals explanation regarding the {$7100.00} payment I made on XX/XX/year>, and its subsequent return. I believe PayPals response does not fully address the discrepancies in the payment process, nor does it explain the issues I encountered with both PayPal and my bank. Below are several key points that need further clarification and documentation. 

Discrepancy in Payment Records : On XX/XX/year>, I made a payment of {$7100.00}, which my PayPal credit card statement shows as accepted. However, PayPal later claimed that the payment was returned, but there is no such return reflected anywhere on my credit card statement. Instead, the statement includes an Adjustment-Payments entry, which is not clearly labeled as an ACH return or payment reversal. I am requesting clarification from PayPal on what this adjustment specifically refers to and why there is no clear record of the payment return. 

Payment Should Have Been Processed on XX/XX/XXXX : It is important to note that I had sufficient funds ( {$10000.00} ) in my bank account at the time of the payment on XX/XX/year>. Under normal circumstances, the payment of {$7100.00} should have been processed successfully on that date. The fact that this payment was not processed, despite having enough funds, suggests that an error occurred either on PayPals end or with my bank.

Given that my PayPal statement initially showed the payment as completed, and there was no clear reversal or adjustment labeled as an XXXX return, I am requesting further clarification on why the payment was not processed correctly. 

Available Funds and Banks Role : At the time of the payment, I had {$10000.00} in my bank account, more than sufficient to cover the payment. Despite this, my bank has indicated that they did not send the funds to PayPal, citing insufficient funds as the reason. However, my transaction history with the bank shows the payment as completed, creating a significant discrepancy between what my records show and what the bank claims. 

In a conversation with my banks representative, they could not provide the specific time when the payment was processed, claiming it was never sent. Yet, the payment is marked as completed on my account, which further adds to the confusion. 

The bank also mentioned that several smaller payments were made to PayPal around the same time, but this does not explain why the {$7100.00} payment wasnt processed, especially since sufficient funds were available.

Notification of Returned Payment : PayPal claims that I was notified of the returned payment on XX/XX/year>, and that my financial institution also notified me. However, I did not receive clear notification from PayPal, and the explanation from my bank has been inconsistent. I ask that PayPal provide evidence of this notification and any communication sent to me regarding the returned payment. Additionally, I would like further clarification on how they claim my bank notified me. 

Inaccurate Venmo Credit Card Banner : PayPal admits that I received a notice regarding the returned payment with a Venmo Credit Card banner, even though I do not have a Venmo credit card. While they state this was an error, it contributed to the overall confusion regarding my account and the returned payment. I ask that PayPal ensure no future errors like this occur and clarify why this mistake happened.

Fees and Payment History : PayPal mentioned a payment of {$100.00} made on XX/XX/year>, which was below the minimum required payment, resulting in fees. Given the larger payment I made later that month ( which was allegedly returned ), I request that PayPal review these fees and whether they were applied fairly given the subsequent payment.

Lack of Address Update : PayPal claims that I did not update my mailing address during calls on XX/XX/XXXX and XX/XX/year>. However, I made efforts to update my contact information during these conversations and in past several calls over the years since moving to my new location in XXXX. This may have contributed to delays in communication, and I request that PayPal confirm that all account information is fully updated.

Banks Role and Lack of ACH Documentation : My bank has indicated that the payment was never sent, despite PayPals claim that it was returned. This discrepancy remains unresolved, and I ask that PayPal provide detailed evidence of the XXXX return process, including communications with my bank, to clarify why the payment did not go through. 

I have repeatedly requested a detailed explanation from my bank regarding why the funds were not sent, yet they have not provided this information. I will be filing a separate complaint with the CFPB regarding my banks failure to provide the requested information. 

Request for Documentation : I am requesting that PayPal provide documentation and proof of the following : 1. The exact date and time they claim to have received the {$7100.00} payment.

2. The date and reason for the return of the funds, along with any records from my bank indicating why the payment was returned.

Request for Further Review : I respectfully request that PayPal be required to provide more detailed documentation on : The exact reason for the returned payment.

Clear documentation showing why the funds were not processed.

Proper communication between PayPal and my bank.

How can PayPal claim I paid in full and report this to two credit agencies if the funds were never sent?

How can PayPal return funds that were never sent?

Attachments : I have attached the following documents for further evidence : 1. Conversation with my bank : Documenting my efforts to clarify why the funds were not sent.

2. Tracking information : Proof of my formal letter to the bank requesting a detailed explanation of the returned funds.

3. Monthly statement : Showing the unclear Adjustment-Payments entry instead of a clear ACH return or reversal.

The failure to process this payment and the subsequent return is either an error on PayPals part or my banks. I request further investigation into why this payment failed, despite having more than sufficient funds in my account at the time.

Request for Resolution : I am seeking assistance in obtaining a clear and accurate resolution to this issue. PayPals inconsistent handling of the payment, along with my banks lack of response, has caused significant confusion and financial stress. I would like this matter to be resolved with transparency from both parties.

Attached are my credit card statements showing the payment as accepted, a transcript of my conversation with my bank, and letter tracking number screenshots of my request for information from my bank. 

Thank you for your attention to this matter. I look forward to further clarification and resolution.