Consumer complaint received 2021-02-04
Product: Money transfer, virtual currency, or money service — Debt settlement
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc (FL)

We are a business consulting company, we provide our clients with solutions for their companies, such as web development, XXXX XXXX, accounting services, digital marketing, among others. 

On XX/XX/XXXX we received a payment in our PayPal business account, a payment of {$800.00} from our XXXX client " XXXX XXXX XXXX '' which is a non-profit foundation that is buying from us a license of the XXXX XXXX software in its Cloud Standard version, of which we are authorized Solution Partner. 

On XX/XX/XXXX we received a payment of {$4000.00} from an invoice of XXXX in our paypal business account, from our client in XXXX XXXX XXXX XXXX XXXX. who bought us a XXXX license in its XXXX XXXX XXXX version. It is agreed that only the client will initially pay {$4000.00} and the remainder at the end of the installation and configuration work of their server. 

We tried to transfer the funds from our PayPal business account to our bank account to make the payments of the licenses of our clients and pay our employees, however, PayPal told us that a security check had to be done and they also informed me that I had a debt in my personal PayPal account for an amount of {$970.00}, I contacted the PayPal collections department to charge the debt from the funds that are withheld, but the collections department informed me that paypal had sold that debt in XX/XX/XXXX to the company XXXX XXXX XXXX XXXX. 

We contacted XXXX XXXX XXXX XXXX and they kindly informed us that Paypal had indeed sold the debt to them, so we made a payment agreement, I also informed them that the available money was held in PayPal for which they agreed to give me 30 days to resolve the payment. I contacted PayPal 's collections department and they told me that they would remove the restrictions on my account so that I could use the money that is available there. However, the PayPal account restrictions and support department keeps telling me that I must pay the debt to them and not to XXXX XXXX XXXX XXXX, but they do not allow me to transfer the money to my bank account to make the payment and they do not collect the debt from the available balance in my paypal account. 

It seems to me that everything may be a misunderstanding between the PayPal departments, but there is also the possibility that it is a scam, that is why I have decided to send you the information so that you can start the investigation.

I have seen many similar cases on the internet and PayPal ends up stealing people 's money, please take the necessary actions so that this type of thing does not happen, we are a small company and every penny withheld affects our operations, it is difficult to grow as company if these types of problems occur. 
I enclose the debt resolution letter that XXXX XXXX XXXX XXXX sent me and that I sent to both the collections department of paypal and the account limitations department. 
I am currently having problems with my clients and my suppliers because I have to make payments and the money is being held in PayPal, even though I have already paid off my debt following the instructions they gave me.