Consumer complaint received 2017-06-14
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Confusing or misleading advertising or marketing — 
Company: Paypal Holdings, Inc (VT)

On    XXXX   XXXX   XXXX   I  was forward funds from a citizen of  XXXX   XXXX  via PayPal for  XXXX  classes I had given a month previously. The money was placed on a 21 day hold by   PayPal, despite not being a sale of goods.
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I followed the companies advice to speed the release ; confirming my identity and sending a services rendered receipt via the website. I called PayPal and the  y assured m e on 4 occ assions that my funds would be released on the   XX/XX/XXXX    <P/> On the  XXXX , the funds were still on hold despite assurances made in the afternoon on the  XXXX  that they would be released on the  XXXX . I called customer service and they stated that they would be made available within the hour. They were n't available well over an hour later.  <P/> A follow up call  one h our after the promised hour of release had an agent who stated that the transaction was on hold until  XX/XX/XXXX  I asked for a supervisor who again stated that the funds were on hold until well after the  XXXX .  <P/>  PayPal advertises themselves as a money transfer service implying a certain level of service consistent with market prac tices. Nowhere on their site if you look at money transfers does it state that there will be holds placed on money transfers. This is deceptive by itself. Let alone, perhaps a breach of their own agreement.  <P/> Furthermore, when opening your account, I got an email that said I would be exempt from holds up to {$1000.00}. Then they held the transaction for just over {$300.00}  USD.    <P/>
PayPals money transfers are deceptive, intentionally deceptive, breach an implied warranty, and are fraudulent and unconscionable. Their follow up promises to remedy were not only kept ; they clearly mistaked the facts about the hold ( agents assuring me of release on the  XX/XX/XXXX , within an hour, then stating release was set for the  XX/XX/XXXX  or other dates well past the promised date ).    <P/> My reliance upon their promised release dates left and their failure to deliver left me with no funds in a foreign country with no funds and no money for food for over 3 days while I go to school online with a small living stipend of  XXXX  per month on my  XXXX  Benefits.  <P/> No money transfer company in the industry holds funds for transfer like this.  <P/> The last word I got on the latest follow up call was that after the promise of release within the hour, that a supervisor had over ruled that decision.  <P/> When the promised releases were made and subsequently disapproved, I was never informed of the change in status until I called and went up during the escalation process.  <P/> DOCUMENTATION  PayPal  Transaction # for this issue is :  XXXX  Amount held : {$310.00} Website Ad for Transfers : ( NOTE : No warning of holds ).  <P/> https :  XXXX   XXXX   XXXX  : Dear  XXXX   XXXX   XXXX   Congratulations  on your first sale with  PayPal!  Since youre a new seller with us, we 'd like to give you important information about how your payments are processed.  <P/> Right now, all payments you receive are placed in your pending balance for 21 days before they can be spent or withdrawn. However, if you help confirm your id entity you can get immediate access to the first {$1000.00} USD you make every month. As long as there are no other issue s, the rest of the money is then released after 21 days.  <P/> 
PREVIOUS CFPB Settlement with PayPal for Deceptive Advertising, Illegal Billing, Failure to Resolve Disp  utes etc : https : //www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-against-paypal-for-illegally-signing-up-consumers-for-unwanted-online-credit/ Please s ee relevant quote from CFPB Director   XXXX   XXXX   on PayPal  settlement and match against the adversting and implied warranties of money transfers in todays economy :  PayPal illegally signed up consumers for its online credit product without their permission and failed to address disputes when they complained, said CFPB Director   XXXX   XXXX   XXXX  Online shopping has become a way of life for many Americans and its important that they are treated fairly. The CFPBs action should send a signal that consumers are protected whether they are opening their wallets or clicking online to make a purchase.  <P/> Thank you for your time and attention. I sincerely am grateful for your agency.  <P/>  XXXX   XXXX