Consumer complaint received 2025-12-24 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Overdraft, savings, or rewards features — 
Company: Paypal Holdings, Inc
State: WA

Complaint narrative:
I noticed a few weeks ago that I had an overdraft balance in my PayPal account, which seemed odd to me because I dont use them as a bank so I didnt even think that was something that was possible. I just use them as a service to protect my online transaction so that theyre more secure than if I was just entering my card information otherwise and what I learned through my first interaction with them was that I was being charged based on subscriptions, I had through other services like XXXX XXXX XXXX XXXX, and it was happening when my outside third-party bank that was linked to the subscriptions that I was clearing through PayPal didnt have enough funds in the account to cover the subscription, and that seemed odd to me because I would expect to get that notification from those institution so that I could add funds to those accounts and those institutions would let me know, but they would let me know later so theres never an opportunity for me to go and cancel the service or otherwise, if there wasnt enough money to pay for it and thats what I wouldve chosen for virtually all of these instances instead, PayPal took liberty did overdraft a balance on my behalf which is in that first interaction was maybe like {$170.00} or low XXXX and then I checked a week later and it was actually up to what it is now about XXXX something dollars and so I called them back again because in the amount of time it took for the balance to go up when I was looking at the transactions and PayPal, there were no new transactions to explain why the balance would increase and I had an and I had since removed all of my linked bank account accounts and subscriptions. I had any tie to PayPal so I didnt even know how it would be possible for them to increase the balance, especially by so much and they couldnt explain it so in the first interaction I had with them. I asked them for materials that showed me that I had agreed or consented to them being able to overdraft on my behalf, went to my knowledge they werent even a banking institution. I didnt even know they could do that nor would I ever want them to and instead they sent me over something that basically said because I have a subscription service it gives them permission to do. This is what they told me it was gon na say but instead, it just explained something about setting up subscription through PayPal wasnt at all what they said it was So I since worked with them on how I could refuse all these claims they said they would submit inquiries on each of them and give the each company 10 days to reply, and of course, each company replied, saying that they were denying these these claims because I had gotten delivery of their services which of course I did PayPal overdraft in my balance to pay for those services which I did not want so Im trying to figure out what to do because after they refused all those claims and denied them PayPal did they told me I have to just pay the entire balance to be able to even close my PayPal account so Im trying to figure out what to do before they send me to collections because I think this is an apparent way of doing business and I certainly dont believe that I am obligated to pay them this balance I feel like Ive been completely scammed by what I thought was their business model.

Company response to consumer: Closed with monetary relief