Consumer complaint received 2019-01-26
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc (MS)

On XX/XX/2019 I initiated a transfer from my XXXX bank account to my XXXX XXXX XXXX XXXX account through the XXXX app - Paypal. I was given a 1 day transfer time. On XX/XX/2019, XXXX ( Paypal ) took {$1000.00} from my XXXX account in the form of two direct debit transactions - {$500.00} and {$560.00}. I ran into some errors when trying to do this so I contacted their customer support line at XXXX on XX/XX/2019 and an agent there helped me complete the transfer. He mentioned having to go into the system and delete something. 

I waited and waited on my transfer and I called both banks and XXXX  several times. An agent named XXXX from XXXX   assured me that my transfer would happen - said to allow them at least 3 business days. This sounded ridiculous but all I could do was wait. On XX/XX/XXXX at XXXX XXXX I received an email from XXXX stating that my account has been frozen and my funds are on hold until I can verify my identity. They asked me to send a picture of my license. I challenged this for security and lack of security reasons but the customer service reps on the phone informed me this was the only way. I spoke to a gentleman named XXXX and a supervisor named XXXX and several others. I sent the copy of my license on XX/XX/19 at XXXX XXXX. I sent a series of emails after that due to no response - 11 total - which included copies of both bank statements and proof that I was on the line with the customer service during the transfer. They also asked for the last 4 of my social, my date of birth, and my email. 

I finally received a response back from XXXX XXXX via email on XX/XX/2019 at XXXX stating that he needed yet more information from me regarding my XXXX XXXX XXXX XXXX account and my debit card with them - which my debit card had nothing to do with the transaction and I did note that in the email. On XX/XX/2019, at XXXX, I emailed XXXX from XXXX back an attachment with my direct deposit form from that bank. I sent 8 total emails with no response ever back from XXXX. 

On XX/XX/2019 at XXXX I received an email from XXXX XXXX , supervisor  whom I was on the phone with regarding my frozen account. She understood that I sent all info needed and believed that they would unfreeze the account. Her and I both cried on the phone over the situation as I am now XXXX XXXX XXXX XXXX Her email basically said she could not help me and I would need to speak with the account specialist who only communicate via email. I did not respond back to her email. 

On XX/XX/2019 at XXXX I received an email from XXXX XXXX stating they permanently deactivated my account and will no longer offer me service. The email further stated in the exact words " The funds have been reversed to your duplicate account and will remain held by XXXX for up to 180 days. If we deem the funds suitable for release we will contact you via email with the next steps ''. I informed them that I would go forward with a law suit and filed a dispute with my bank. 

On XX/XX/2019 - I emailed both XXXX and Paypal a demand letter to return the funds back to the original account that they drafted them from. They replied back with an email stating they haven't received a copy of my license that I sent over a day ago. I'm concerned about my identity being stolen as the same email address that I sent the license to had no idea of what was going on. 

XXXX now has my money in their bank and will not return it to my account even though I have proven what they asked with several personal documents - that I am the legal account holder. I was scammed out of {$1000.00} and now I have no money. That was my full pay check and my daughter and I are starving. My small business is suffering as I had bills due for it and I just don't know how I'll make it. I'm a single mom, child 's father is deceased, and XXXX ( operated by Paypal Inc. ) has stolen all of my money. I became very ill upon finding out this and had to miss work and etc. 

I have all correspondence documented and will support any and all necessary documents.