Consumer complaint received 2023-05-13 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: Paypal Holdings, Inc
State: AL

Complaint narrative:
Dear XXXX  XXXX XXXX ( XXXX ) and PayPal, IN RE : PayPal Account under Email Address XXXX This is a formal notice to cease and desist and a formal demand and preservation letter. 

I am hereby disputing the amount of {$5300.00} referred to XXXX XXXX XXXX ( XXXX ) for collection by PayPal. 

These items were sold via PayPal, tracking information that matched the buyers address was provided, and PayPal marked such transactions as eligible for Seller Protection. 

XXXX XXXX XXXX ( XXXX ) and PayPal is to cease any attempts to collect on this amount and immediately cease from attempting to report such amount to the credit bureaus. 

The negative balance under said PayPal account is to immediately be removed. 

Any action in violation of the demands herein will result in further legal action being taken. 

In accordance with PayPal Seller Protection terms and conditions the negative account balance of {$5300.00} SHALL be removed from the PayPal Account Balance under Email Address XXXX and this collection account must be closed within 5 days because as acknowledged by PayPal Representatives and as included in the documents attached the transactions are marked as unauthorized by the buyer to the buyer 's financial institution and PayPal marked the transactions as eligible for Seller Protection and the representative acknowledges that tracking information was provided that covered the buyers address. 

Paypal Representatives also emails me an acknowledgment was sent via the message center by a PayPal employee that these two disputes were still open and that while they were open this amount did not have to be paid and no collection efforts could take place concerning these amounts anyway, therefore, this amount should have never been referred to collection. 

All screenshots and downloaded provided herein were provided by a PayPal representative and were emailed to me. 

Paypal dispute # XXXX XXXX XXXX by PayPal Seller Protection as an agent has acknowledged it is marked as eligible for such protection and because it was unauthorized and tracking information was uploaded for such that covered the buyers address. This transaction was for {$2100.00}. PayPal and XXXX XXXX XXXX ( XXXX ) is more than welcome to confirm this with the buyer 's financial institution. 

Paypal dispute # XXXX XXXX XXXX filed as unauthorized but was changed to a credit not processed dispute with the buyers bank. It has again been reported an unauthorized. I confirmed this directly with the buyers financial institution. And they stated to me such is currently a fraud claim and that this transaction has once again been flagged as fraudulent and unauthorized therefore making this transaction also eligible for PayPal Seller Protection given it is covered by PayPal Seller Protection given the original transaction was marked as eligible for PayPal Seller Protection and it is being reported as unauthorized and was uploaded for such that covered the buyers address. PayPal and XXXX XXXX XXXX is more than welcome to confirm such transaction in the amount of {$3200.00} is currently reported as unauthorized with the buyer 's institution. 

Furthermore I have attached PayPal 's Seller Protection and the terms and conditions of Paypal 's Seller Protection which furthermore states that Seller Protection still applies in instances when a buyer reports such as unauthorized directly to their financial institution and not PayPal. At the time of this matter these were the current terms and conditions of PayPal Seller Protection and such terms and conditions are applicable to this legal matter. 

Attempts to resolve this matter have been ongoing for months and nothing has occurred. And PayPal and XXXX XXXX XXXX ( XXXX ) is encouraged to review the attachments provided along with this demand and preservation letter. 

Paypal and XXXX XXXX XXXX ( XXXX ) is in violation of the Fair Credit Reporting Act ( FCRA ) and other federal and state laws given PayPal is attempting to hold an individual responsible for an amount of money they do not owe. Furthermore, Paypal 's own Seller Protection covers any reporting of unauthorized transactions that are marked as eligible for Seller Protection and this matter should have never been referred to a collection agency and should never have been a negative balance on the PayPal account under email address XXXX. 

Paypal and XXXX XXXX XXXX ( XXXX ) is on formal notice to keep the PayPal account open in the event litigation it commenced in the future and preserve any and all documents, messages, letters, pdfs, recordings, information, collection attempts, and all account information in regards to dispute # XXXX XXXX XXXX # XXXX and concerning the PayPal account under email address : XXXX as a whole and collections attempts concerning these two items sold by a PayPal Seller. 

I am unable to attach all communications via message center, however, I encourage PayPal to look at such under the PayPal account. 

In order to amicably resolve this matter and in an attempt to resolve this matter without additional legal action the following is hereby demanded. 

1 ) Confirmation this matter will not be reported to the credit bureaus and all collection attempts will cease immediately.

2 ) Confirmation Paypal will abide by the Seller Protection terms and conditions and its prior assurances concerning this matter.

3 ) Confirmation of the removal of the Negative Balance on PayPal.com for the Account under Email Address : XXXX. 

4 ) Confirmation of the closure of the collection account concerning this amount of {$5300.00} with XXXX XXXX XXXX ( XXXX ) for PayPal Account under Email Address : XXXX. 

5 ) Payment in the amount of {$1000.00} for violations of the FDCPA at an address to be provided at a later date when requested via email.

Company response to consumer: Closed with non-monetary relief