Consumer complaint received 2024-07-10
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: Paypal Holdings, Inc (CO)

I am writing to file a complaint regarding fraudulent activity associated with an old PayPal account and the subsequent handling of this matter by PayPal and XXXX XXXX XXXX XXXX ( XXXX ). Below is a detailed account of the events : XX/XX/XXXX : I received a collection notice from XXXX for {$640.00}. Initially, I suspected a scam. I contacted PayPal and spoke with a representative, who confirmed the legitimacy of the debt associated with a specific account number. I informed her that I only have one PayPal account and disputed the debt. The representative told me the account in question was associated with an unfamiliar email address. She provided a ticket number and mentioned that the XXXX XXXX XXXX XXXX XXXX would contact me within five days by mail for a solution, which never happened. 

On the same day, I also contacted XXXX and spoke with another representative. He noted that the email associated with the debt was different from mine and advised that it appeared to be a case of fraud. He confirmed the email was the same unfamiliar one mentioned earlier. He suggested obtaining a police report to validate the fraud claim and assured me that PayPal would handle the investigation within 15 days. However, I did not hear back from either PayPal or XXXX. 

XXXX XXXX : I filed a report with the XXXX Police Department , and the Chief of Police provided an offense/incident report. 

XXXX XXXX approximately : I contacted PayPal again and was given inconsistent information. Customer service representatives across various departments, including disputes and collections, informed me that the email suspected of fraud was different from the one initially mentioned. The representative also told me that the ticket had been closed and that the email associated with the fraudulent activity was flagged as identity theft. However, I was also told that no fraud was found, which contradicts their earlier statements. 

During this conversation, I discovered that the email associated with the fraud was one I haven't used in 14 years, suggesting it was accessed through the dark web for unauthorized charges. Despite this, PayPal closed the ticket without resolving the issue. I was passed to customer support again, explained the situation, and was given a second ticket number and told it would be passed to the appropriate department. 

I contacted XXXX again and spoke with an Operations Manager, who reiterated that PayPal was handling the investigation and that it would take 6-8 weeks. He told me to email him the police report and to check back at the end of XXXX. He also confirmed that the PayPal account in question of fraud was the old email address. I informed him that this unresolved fraud could affect my newly secured XXXX  with the XXXX XXXX XXXX XXXX due to public trust clearance requirements. I emailed the police report but received no confirmation of receipt or further assistance. 

XX/XX/XXXX : I sent XXXXertified express mail to both PayPal 's Fraud Department and XXXX, including a formal dispute letter, FTC identity theft letter, police report, and a copy of my driver 's license. Despite these efforts, I have received no resolution or meaningful assistance. 

XX/XX/XXXX : I contacted PayPal again, and they confirmed that the old email address was flagged for identity theft and could no longer be used. However, when I asked their collections department for a status or resolution on all my ticket numbers regarding the fraud, they could not provide any information. The representative passed me to customer service, and I talked to another representative. I explained the entire situation again, and he gave me a new ticket number. He, like others, said he could not access much information on the old email account. He told me he would pass it to the security team to see if they could find out any information. 

This ongoing situation is causing significant stress and could potentially impact my employment and credit. I have been given the runaround and no help resolving the matter. I am seeking your assistance to resolve this matter swiftly and to hold PayPal and XXXX accountable for their handling of this fraudulent activity. I have gotten no answers, and this should be treated as a case of identity theft/fraud and resolved promptly. 

Thank you for your attention to this urgent matter.