Consumer complaint received 2025-06-04 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: Paypal Holdings, Inc
State: KY

Complaint narrative:
On XX/XX/year>, I was notified that my XXXX XXXX XXXX Paypal account was permanently deactivated. What I assumed was spam was confirmed over the phone but with no explanation or answers regarding my related accounts. Follow up from a supervisor only confirmed the plan to hold the around {$12.00} in the account to cover any chargebacks, which is bizarre as that is not an actual risk. I was told that a manager would call within 24 hours, which never happened. I sent an email to Paypal customer service on XX/XX/year>. I summarized the situation, offered full transparency on account activity, I requested a fair review of my account, and I asked for a competent response to the unanswered questions. I received the generic message the next day. It was clear that the Paypal customer service infrastructure is ill-equipped to handle very relevant questions as they haphazardly harm consumers. It was only after my Paypal credit card was declined during an online shopping transaction did I receive confirmation that the credit card was closed. 
My PayPal credit card is my oldest consistently held credit account and establishes the length of my credit history. Paypals decision to close my account that is good standing and without cause harm to my credit. My annual income averages over {$400000.00} and my credit score hovers around XXXX, which was earned through hard work, discipline, and decades of responsible financial practices. I plan to bring this matter to credit reporting bureaus and pursue damages due to violations of the Fair Credit Reporting Act ( FRCA ) they blatantly smeared my record and my character. 
Paypal is holding my savings account balance of over {$700.00} without cause and it's unclear if the interest will be paid during this time. This is a violation of my account terms, equates to theft, and is harmful. 
Paypal responded to a complaint by the BBB on XX/XX/year> by stating they could not prove a negative, which is a simple logical fallacy, that includes the following identified risk factors : " You are sending and receiving funds that are associated to potentially high-risk and fraudulent activity. This activity implies you share information with another account with limited access. 
We are unable to ascertain the nature of the payments you have been receiving and are unable to verify the legitimacy of your business website. '' I explained that it's not possible to demonstrate the nonexistence of something with absolute certainty, and I most certainly can not demonstrate with reasonable certainty that I am not engaged in fraud or receiving illegitimate payments if Paypal cares so little about the truth they never bother to ask. 
The statement above does not acknowledge that it is possible for two things can be true at the same time. Its true that my uncle pays me monthly for his cell phone through Paypal but I can not guarantee my uncle is not doing something inappropriate as I also can not prove a negative. Paypal 's response suggests that it's now my job to police his account? I don't work for Paypal and it's not my responsibility to police the activity of accounts that exist within the Paypal network that may exchange transactions for legitimate reasons, and its also not my job to conduct background checks on all accounts before engaging in activity that is within the service agreement. 
In Paypal 's response, they did not acknowledge the additional harms associated with this claim. As a reminder, my Paypal credit card is my longest consistently held account that establishes the length of my credit history. Paypal 's decision to close this account will harm my credit score that averages XXXX, which is an accurate reflection of my financial record, self discipline, and character. I do plan to escalate this matter with the credit reporting bureau, my secretary of state, the FCC, and any other relevant parties to address the harm and smear this action represents. 
Paypal also neglected to address the status of my savings account and potential theft of funds if interest is withheld. This represents a different harm that I intend to pursue through the same channels.

Company response to consumer: Closed with explanation