Consumer complaint received 2021-04-21
Product: Credit card or prepaid card — General-purpose prepaid card
Issue: Problem with a purchase or transfer — Card company isn't resolving a dispute about a purchase or transfer
Company: Paypal Holdings, Inc (AZ)

On XX/XX/XXXX my Paypal XXXX XXXX account ending in XXXX was permanently closed. I was notified by an automatic email from Paypal that they suspected me of participating in fraudulent activity using my Paypal account after I requested password assistance with a login attempt. I explained to Paypal customer service that my VPN service interfered with another prepaid card service, who locked the account automatically, but resolved the issue 7 days later and determined the problem, reopening my account. It was explained to me again that Paypal acts within the service agreement signed by me providing Paypal 180 days to investigate fraudulent activity before being required to give access to funds in the account. After several unsuccessful attempts to work with customer service at Paypal, I filed a complaint with the XXXX XXXX XXXX XXXX XXXX and in the time period allotted by them, I received a response from Paypal that was an apology but also defended the security practices, and a request to verify my identity with customer service, for my account to be reopened. I was an independent XXXX for XXXX, which is a XXXX XXXX employer, who works with XXXX to provide immediate payment on my mastercard after a shift was worked. Three of those deposits did not register into my Paypal cashplus account that were made at the time the account closed. I contacted Paypal several times, and they showed no record of the deposit. I contacted XXXX, and they showed no record of a returned deposit, and referred me to XXXX. When I contacted XXXX, they also showed no record of a returned deposit, and further assisted in providing tracing information for the attempted deposits. They advised that the bank deposited to be contacted and request a trace on the deposits to determine where they were returned to. I contacted XXXX which is the bank for the cashplus card, and they directed me back to Paypal. I filed a dispute with Paypal customer service on XX/XX/XXXX for each deposit and later received a message in my Paypal account for each dispute, saying Paypal has no record of a deposit attempt and was directed to request XXXX to reclaim the deposits and reapply them to the account. I filed a claim on the issue of the deposits with the XXXX, which has a deadline of XXXX for Paypal to respond. First, if Paypal, as advertised on the career section of their website, is a progressive corporation that serves consumers to empower them, then they are not delivering on that statement. Accusing a customer of suspicion of fraud, to the extent of permanently closing their account and freezing their funds there, is the furthest thing from empowering your customers with service. I would have expected resolution within 2 days and a sincere immediate apology for the closing the account and the email which felt degrading to me in being accused of engaging in fraudulent activity. Because of the account being closed, I had no access to money for transportation and lost 3 of work, in addition to cancelling a scheduled shift at the last minute. 180 days is unacceptable, and to not receive action until an outside agency XXXX steps in, is also non-delivery of advertised corporate ideals. 
I received the same lack of service regarding three deposits. I am suspicious of Paypal 's practices in the newer direct deposit line, and find it disconcerting that they do not search deeper with tracing information offered, to the bank level to determine where the deposits are. In the first XXXX complaint, the apology given contained the statement that the 'frontline customer service ' employees do not have the training, but I also question the procedures of the limitations department, which isn't frontline, who never followed up with any information on investigations. Further, I challenge Paypal to present the documentation of investigations that were done on my account whose " findings '' were used to justify keeping my account closed with a freeze on money in the account. This was until XXXX helped resolve the situation. I am now pursuing the deposits, and also a XXXX  complaint regarding them. This is the highest degree of mistreatment I have ever received by any company providing financial services.