Consumer complaint received 2021-04-14
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account — 
Company: Paypal Holdings, Inc (CA)

Dear Consumer Financial Protection Bureau, I need to report an issue I am having with Paypal please. They recently banned my account and will not give me a reason. I have tried calling and speaking to an agent, emailing them, and reaching out through the XXXX XXXX XXXX. As of today, Paypal is still not giving me a specific reason as to why they banned my account. 

This all began with the one and only Dispute I ever filed with Paypal since I created my account in XXXX. On XX/XX/XXXX my Paypal account was banned ( " Permanently Limited '' ) for " violating buyer protection policies. '' However, there was nothing I did that violated any policies. In short, I was sent an item that was advertised as something else, requested to return the package back to the seller for a full refund, Paypal decided in my favor, then banned me the same day they processed my refund. 

The Dispute Information : I purchased an item from a seller that was falsely advertised. I purchased a lot of 4 items, advertised as : a XXXX, a XXXX, and XXXX XXXX. These are collectable items from a XXXX shop called XXXX the XXXX XXXX XXXX, and all in the theme of their bear mascot. What the seller labeled as the purse was actually a coin pouch, a much cheaper and less useable item. Their photo was angled so you could not see the major difference between the two, which is only visible from the top and of the straps, which the seller did not take a picture of. ) The seller admitted fault in our messages XXXX which I sent screen shots of to Paypal XXXX, but said they " already spent the money '' and would not do anything to fix their mistake. After a lot of back and forth with the seller without reaching an agreement, I tried opening my first Paypal Dispute ever. I also reached out to the mods of the buying platform I used, XXXX  ( which is a platform to buy/sell clothing ) who also told me the seller 's behavior was suspicious and told me I should open a Paypal Dispute as well. The seller was sending me many messages that made me feel uncomfortable as they were hostile, so that coupled with the fact that I would not have purchased the lot had they properly labeled the item being a coin pouch, it seemed easiest to just send everything back for a refund since the price difference with the falsely advertised item made the lot 's value lower than. 

In the end, Paypal decided in my favor, however while I had been requesting to send the box back for a refund since the beginning of my Dispute, I was instead just granted a refund. I called Paypal immediately after they approved my Dispute, confused, and asking when I was supposed to send the box back. The agent looked into the specifics and said the refund was already starting to be processed as an e-check, and after it cleared I could ship it back and then submit the receipt to Return on Us for reimbursement. 

A few hours after I spoke to this agent, I suddenly got an email from Paypal saying my account was " Permanently Limited '' aka Banned. I called immediately, but Paypal 's office hours were already closed. I tried using their messaging system, but I just got a bot auto-reply directing me to articles about why I was banned. 

I called first thing the next morning and spoke to an agent named XXXX. I asked why I was banned and XXXX just read the email I received back to me and said they could not see any other information. I explained what happened and while they seemed confused about my ban, they said it was out of their hands and there was nothing I could do to appeal it. 

Some sources online suggested I contact the XXXX XXXX XXXX which I did, and I just heard back a few days ago from Paypal with just a vague answer and telling me they approved me for the refund of my Dispute and that " There may be excessive risk involved in doing business with you. '' I wrote them back last night asking what exactly these possible excessive risks are, since I have had an account with them since XXXX and never had a single negative experience or Dispute before. I appreciate the XXXX XXXX XXXX for helping me get some sort of reply from them when calling/emailing them on my own did nothing, however after doing some more research online I came across many people who suggested I reach out to the Consumer Financial Protection Bureau about this, which is why I am submitting this to you now. 

After I was approved for a refund by Paypal for being sent a product that was falsely advertised, I was supposed to be able to get reimbursed for the shipping I would be paying to send it back to the seller with Paypal 's Return on Us, as said by the Paypal agent I spoke to. Since I was blocked a few hours after our call, on XX/XX/XXXX after the refund went through to my bank account, I paid out of my own pocket to return it as I did not want to keep the seller 's items since I already received my refund. ( USPS Tracking : XXXX for you to see, the cost was {$17.00}. ) All of this is so confusing since Paypal told me they decided for my Dispute the day they banned me. Paypal is not communicating with me and giving me any real, tangible reason as to what I did wrong. The reason I got banned seems to vary as well agent to agent : In the email, it said I violated buyer protection policies, but in the one reply I received through XXXX, someone named XXXX from Paypal said " There may be excessive risk involved in doing business with you. '' Considering I never filed a dispute since XXXX, never had a negative balance in my Paypal, was approved in my Dispute by Paypal themselves, and even shipped the box back to the seller out of my own pocket so the seller could at least have their items back, I am at a loss as to what could possibly warrant me being banned. 

I use my Paypal as my main means of buying things online and sometimes selling things online as well. No longer being able to use Paypal is a huge inconvenience since it is the most widely used payment program available and being banned directly negatively impacts me being able to buy and sell in the same spaces as most other people and my business with ecommerce. This entire issue with not only the dispute with the seller but also Paypal banning me has taken many hours of trying to reach out to Paypal for a response/help and writing up lengthy messages detailing what happened to try to get this fixed. Since I still have not been given an actual reason to my ban, I feel it may be a mistake and hope that by filing this with the Consumer Financial Protection Bureau, it may be fixed. 

Since there were so many messages and documents involved with this, I have everything uploaded in this XXXX XXXX folder for you to see as well : https : XXXX? usp=sharing Thank you for your time, XXXX