Consumer complaint received 2021-08-24
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unexpected or other fees — 
Company: Paypal Holdings, Inc (UT)

After 20 years of using PayPal with zero issues, I received an email from PayPal on XX/XX/XXXX informing me that my account was permanently disabled due to a review of my recent activity. I called PayPal customer service the same day, and it was explained to me that PayPal believed I used my account to sell a gun, due to transaction notes on a recent payment mentioning XXXX. I explained I sold a hunting rifle scope, not a gun, and a rifle scope does not violate their user agreement. I was told regardless of what was sold, my account lock was permanent and could not be contested, regardless of their being zero evidence of me actually violating the terms of service or user agreement. The gentleman on the phone explained that my account was now locked, and my {$820.00} cash balance, and {$200.00} crypto currency investment I had purchased through PayPal would both be frozen for 180 days. I was told that after 180 days I would receive an email with instructions on how to temporarily lift the account lock so I could withdraw my cash, and sell my crypto currency to withdraw the cash from the sale of those as well. At no time was it explained that PayPal may chose to keep my money. I was told several times, Sir, after 180 days youll get your frozen money back.

However on day 175, 5 days before the expected email, PayPal withdrew my entire cash balance of {$820.00} for damages and for violation of user agreement. I was given no warning, they sent no transaction or confirmation email. Not a single notice that typically comes with any money movement in my PayPal account. After 180 days, I called customer service to request an explanation of the charge, as well as requesting they release my crypto currency so I could sell it, and remove that cash. I was informed I should review the user agreement, which has buried deep in the fine print that it allows them to charge up to {$2500.00} per user agreement violation. I again explained no transaction ever violated their user agreement, and was again informed that it appears you used Paypal to sell a gun. Which I did not. In regards to the Crypto, I called three times in XX/XX/XXXX and spoke with PayPal customer service. Each time I was told a case would be set up, and I would receive an email to unlock the freeze on my crypto, which has now grown in value to over {$400.00}. I have yet to receive an email, and as of today, the crypto is still frozen in my account. The balance changing daily based on current crypto values. I dont believe PayPal has any intention of releasing it, I also believe they train their customer service to highlight the wait 180 days and youll get your money back line, while never mentioning the potential of losing it all to their secret fee buried in the user agreement because they want to avoid any complaints up front, and hope the delay reduces that risk. They have provided zero evidence of any user agreement violation, except for the completely false and baseless accusation of me selling a gun through PayPal, which never happened. They provide no recourse or ability for me to prove that I did not violate the policy, have told me simply the decision is final, I can not contest it, etc. PayPal has set up their system to allow them to ban anyone at any time, for any reason, and they can then lock your account, and withdraw your funds without any proof of damages, any proof of violating their user agreement, and give you no ability to contest their decision or defend yourself against their baseless accusations.