Consumer complaint received 2025-05-22 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: NY

Complaint narrative:
To Whom It May Concern, I am filing a formal complaint against PayPal for repeated violations of its Buyer Protection policy, financial obstruction, and deceptive internal practices that have caused me both measurable financial harm and profound emotional distress.

I returned a counterfeit item to a merchant after discovering the product was entirely synthetic and not as described. I provided valid tracking information showing the item was received by the seller. Prior to doing so, I received a written confirmation from PayPal stating that once I returned the item and provided tracking, I would receive a refund. Despite this, my claim was denied. A live PayPal reviewer informed me that the return and tracking didnt matter disregarding both the evidence and PayPals own written commitment. To add insult to injury, I paid for the return out of pocket, expecting fairness based on the written agreement. That refund never came.

In another dispute totaling {$82.00}, I placed a bundled order, but the seller canceled the largest item in the bundle after checkout, significantly reducing the value and misrepresenting the transaction I had agreed to. This was a material change in the transaction. Buyer Protection explicitly covers such scenarios. I filed a claim, but PayPal mishandled the case classification repeatedlychanging the type of claim multiple times, which they later used as a pretext to deny it altogether. The mishandling was entirely on their end, yet they told me the case changed too much to be reopened. This created a closed-loop of denial where my evidence, concerns, and even eligibility were all erased by internal misrouting.

Over time, I noticed a pattern : the more valid claims I filed, the more aggressively I was denied. A PayPal representative confirmed to me in a recorded call that my account had been flagged internally not for fraud or abuse, but because I had submitted too many claims, even though those claims had previously been approved. That internal risk flag was then used to justify denying future claims, regardless of merit. I was told that because of this flag, they no longer had to offer me rationale or documentation, even when asked. I requested all relevant internal notes and personal data regarding my claims and I was denied access unless I presented a subpoena. This violates both PayPals stated privacy policy and multiple consumer protection laws that require transparency in the handling of personal data and account decisions.

Throughout this process, I was subjected to hours of evasive, circular conversations with PayPal representatives. I was gaslit, stonewalled, and emotionally pushed to the brink of hysteria by the way my concerns were disregarded, my questions re-routed, and my documentation dismissed without acknowledgment. Reps repeatedly answered questions I didnt ask, ignored the ones I did, and often spoke in a way that made it clear their goal was not resolution it was deflection.

Though this letter is written in a professional tone, the emotional toll PayPal inflicted has been deep. Their tactics are not just bureaucratic failures they are financially predatory and psychologically cruel. I followed their policies. I returned what I received. I submitted evidence. And for that, I was penalized, flagged, and stripped of my rights to fairness, access, and resolution.

I am formally requesting : 1. Full refunds for the returned counterfeit item and the materially changed bundle order 2. Removal of any internal flags or limitations placed on my account for filing valid claims 3. Disclosure of all internal notes, account notations, and rationale used to deny my disputes 4. A regulatory investigation into how PayPal uses risk flags and case classification errors to deny rightful protection 5. A full review of PayPals compliance with its own Buyer Protection policy and applicable consumer data laws I am prepared to provide tracking numbers, screenshots, audio recordings of representative statements, and written correspondence from PayPal contradicting their actions. I expect a response that reflects the seriousness of this matter and restores both the funds and dignity that were taken from me. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with monetary relief