Consumer complaint received 2025-05-01 00:00:00
Product: Prepaid card — General-purpose prepaid card
Issue: Trouble using the card — Problem with direct deposit
Company: Paypal Holdings, Inc
State: KY

Complaint narrative:
I am filing this complaint against PayPal regarding an ongoing and unresolved limitation placed on my account on XXXX XXXX XXXX which has resulted in the withholding of funds I rightfully own. Despite providing extensive documentation verifying my identity, PayPal continues to deny access to my account solely because my government-issued photo ID is expired.

As of XXXX XXXXXXXX XXXX, I have submitted the following : - My expired KY drivers license - My Social Security card - A live photo of myself holding a handwritten note with my name and the current date - Multiple recent pieces of mail confirming my address and driver 's license number - Credit card information on file - Four additional documents from credible institutions ( XXXX XXXXXXXX XXXX, XXXX, XXXX ) referencing my driver 's license number All documents consistently match my identity, and the information tied to my PayPal account. PayPal refuses to lift the limitation because the photo ID is expired, even though all evidence confirms I am the account owner. 

I understand and respect the need for identity verification, but this situation is being handled with no reasonable flexibility. I have explained multiple times that I am actively trying to obtain a new valid ID, but the process is unreasonably difficult. Kentucky moved all ID services out of local clerk offices and into regional DMV offices, which are outside of my county. These offices are located 30 minutes to over an hour away. I do not have a valid license, vehicle, or access to public transportation, making it nearly impossible to reach one. Even if I manage to get there, the DMV no longer issues physical IDs on-site. They are mailed 1015 days later. There is NO immediate solution. During a phone call I received on XXXX XXXXXXXX XXXX from XXXX with PayPal 's XXXX XXXX XXXX XXXX XXXX, he made clear that PayPal does not accept temporary copies of IDs ( which is all the DMV provides until the physical copy is mailed ), leaving me in an impossible situation. They are effectively denying me access to my own funds over a bureaucratic technicality. 

The timing of this limitation followed a dispute I opened on XXXXXXXX XXXX XXXX, regarding a {$49.00} charge from XXXX XXXX. That dispute was initially mishandled by PayPal, and after correcting their error and changing the claim type, my account was suddenly limited, a coincidence PayPal denies, despite the timeline. Initially, I was told that the limitation was placed on my account after they discovered that a new PayPal account had been opened in my name. Now, PayPal claims that my account was flagged due to a tax refund deposit received in both mine and my estranged husbands name. However, I received a joint IRS deposit through this same PayPal account in XX/XX/XXXX, for a larger amount with zero issues. In fact, I even proactively and successfully contacted PayPal to increase my spending limit after the XX/XX/XXXX direct deposit. When I asked why I wasn't met with the account limitations in XX/XX/XXXX, I was told by XXXX that the system just didnt catch it before. That inconsistency is unacceptable. My husband and I separated more than 5 years ago but have remained amicable. His name is not on my PayPal account, but he is willing to provide his valid ID and other supporting documents as requested. PayPal refuses to accept his valid ID without mine being valid, even though we are both named on the deposit. He is also directly affected by PayPal 's decision. 

As of Monday, XX/XX/XXXX, PayPal has made it clear that there is no alternative path forward unless I provide a valid ID, which I am physically and logistically unable to obtain in a timely manner due to factors entirely outside of my control. Meanwhile, they continue to withhold funds that are needed for survival. We have urgent needs, including life-sustaining medication, groceries and bills. Our situation is dire. 

This is not just poor customer service, this is a systemic failure. Refusing reasonable accommodations for customers who are in difficult situations, despite clear evidence of account ownership. 

I am NOT a fraud or attempting fraudulent acts. I am NOT irresponsible. I AM simply a single mother trying my best to survive. Ive been a PayPal user for 6 years and have tried to resolve this respectfully and thoroughly. I feel punished for not having a current ID, even though Ive proven my identity beyond a reasonable doubt. I am now in a financial crisis due to PayPals policies and inconsistent enforcement. 

I respectfully request the CFPBs assistance in requiring PayPal to review my case with human judgment and reason. The hardship this is causing is dehumanizing and devastating.

Company response to consumer: Closed with non-monetary relief