Consumer complaint received 2026-01-20 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: Paypal Holdings, Inc
State: TX

Complaint narrative:
CFPB Complaint Unlawful Account Restriction, Denial of Access to Funds, Demand for Full Account Reconciliation, and Time-Bound Resolution To Whom It May Concern, I am submitting this complaint regarding PayPals improper restriction of my account and debit card, which resulted in my being unlawfully denied access to my own funds for nearly five ( 5 ) days and caused financial hardship.

Summary of the Issue PayPal blocked my PayPal card from receiving a third-party transfer from the XXXX app. I contacted XXXX and was advised to contact my card issuer, aka PayPal. The transfer from XXXX was lawfully initiated and authorized. Upon discovering the block, I immediately contacted PayPal and explicitly offered to verify my identity and any information required to resolve the issue. Despite my willingness to comply, PayPal representatives refused to complete verification and maintained the restriction. 

I was expressly informed that the restriction would be resolved within seventy-eight ( 78 ) hours. However, during this period I remained unable to access or use my funds. As a direct result, I was unable to purchase basic necessities or pay a bill that was due, causing measurable financial hardship.

Customer Service Failures I spoke with two separate PayPal representatives. 

The first failed to provide a resolution or path to verification. 

During the second call, when I requested escalation to a supervisor, the representative disconnected the call without explanation. 

This conduct obstructed resolution of a matter involving access to my own funds and denied me a reasonable opportunity to address the issue. 

Ongoing Account Concerns In addition to the recent restriction, I have observed long-standing discrepancies in my PayPal account XXXX including : Transactions appearing to disappear Charges that appear to have been deducted more than once Delayed posting of transactions that result in balance inconsistencies These issues raise serious concerns regarding the accuracy and integrity of PayPals account handling.

Formal Requests for Resolution I am requesting the following corrective actions : A full reconciliation of my PayPal account for the life of the account, including identification of all errors, duplicate deductions, missing transactions, or improper holds.

Immediate credit of all funds improperly withheld, duplicated, or deducted in error.

Monetary compensation for the hardship and financial losses caused by PayPals denial of access to my funds. 

Written confirmation explaining : The specific reason for the block Why identity verification was refused despite my request Why escalation to a supervisor was denied Completion of all corrective actions within a timeframe equivalent to the seventy-eight ( 78 ) hours PayPal represented would be required to release my funds, beginning upon receipt of this complaint.

Conclusion PayPals actions resulted in improper restriction of funds, failure to provide due process, and measurable harm. I am requesting CFPB assistance to ensure full investigation, timely correction, and restitution consistent with PayPals own stated resolution timeframe. 

Sincerely, XXXX XXXX Attachments Include : a. ) Confirmation from XXXX that PayPal blocked my card, complete with a timestamp b. ) screenshot showing that my account is still frozen beyond the XXXX hour block imposed by PayPal.

Company response to consumer: Closed with explanation