Consumer complaint received 2026-05-22 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Paypal Holdings, Inc
State: NY

Complaint narrative:
PayPal closed Case ID XXXX XXXX XXXX favor on XX/XX/XXXX, and confirmed a {$320.00} refund for XXXX transaction XXXX. XXXX also confirmed the {$320.00} refund. Despite this, PayPal is claiming or showing that I still owe money. I dispute any negative balance, collection activity, account limitation, or adverse reporting. I request correction of my PayPal balance to {$0.00} for this transaction, written confirmation, removal of any collection or negative-balance flag, and preservation of all records. I also request reasonable accommodation as a XXXX customer because PayPals chatbot-only process is preventing meaningful human review of a financial error. I am submitting this formal dispute and demand for correction regarding PayPals continued assertion that I owe money after a transaction involving XXXX XXXX XXXX was refunded, XXXX and PayPal closed the dispute in my favor. The relevant records show the following : On XX/XX/XXXX, PayPal opened or reviewed my dispute under Case ID XXXX, involving Transaction ID XXXX, a transaction amount of {$320.00} USD, and a dispute amount of {$300.00} USD. PayPal stated that it contacted XXXX for more information and that the seller was expected to respond before XX/XX/XXXX. On XX/XX/XXXX, XXXX issued a refund of {$320.00} for Order/Transaction ID XXXX, confirming : XXXX just sent you a refund of {$320.00} for your recent purchase. XXXX also separately confirmed that a refund of XXXX has been applied for order # XXXX. On XX/XX/XXXX, PayPal confirmed that the case was closed in my favor, stating : We reviewed the case you filed on XX/XX/XXXX, and have decided in your favor and Weve issued a refund of {$320.00} USD to you on XX/XX/XXXX. PayPals own notice identifies the same case ID, seller, transaction date, transaction amount, and Transaction ID XXXX. Despite this, PayPal is now claiming or implying that I still owe PayPal money connected to this resolved transaction. That position is inaccurate, unsupported by the transaction record, and inconsistent with PayPals own written case outcome. I dispute any negative balance, collection attempt, account limitation, repayment demand, offset, late notation, adverse account action, or credit reporting connected to this transaction. PayPal can not lawfully maintain an alleged debt after the seller refunded the transaction and PayPal closed the case in my favor. This matter also implicates XXXX duties under consumer financial protection law. Under the Electronic Fund Transfer Act, XXXX XXXX. XXXX, and Regulation XXXX, XXXX C.F.R. XXXX, a financial institution must investigate alleged electronic fund transfer errors and correct confirmed errors. Regulation XXXX defines an error to include an unauthorized electronic fund transfer, an incorrect electronic fund transfer, and computational or bookkeeping errors relating to electronic fund transfers. If PayPal has furnished, threatened to furnish, or intends to furnish any negative information based on this incorrect alleged balance, I also dispute that information under the Fair Credit Reporting Act. Furnishers XXXX not report information to consumer reporting agencies when they know or consciously avoid knowing that the information is inaccurate, and furnishers must correct and update information that is incomplete or inaccurate. PayPals continued assertion of a balance after written confirmation of a favorable dispute outcome XXXX also constitute an unfair, deceptive, or abusive act or practice under New York XXXX XXXX XXXX XXXX, which prohibits unfair, deceptive, or abusive acts or practices in the furnishing of services in New York. I am also requesting reasonable accommodation as a XXXX customer. XXXX own accessibility materials state that PayPal considers customer feedback regarding accommodations and accessibility policies, and PayPal states that customers XXXX contact PayPal regarding disability-related service concerns. I request that PayPal communicate with me in writing, provide a clear, plain-language accounting of the disputed balance, suspend collection activity while this dispute is reviewed, and provide a supervisor-level review rather than automated or circular customer-service responses. Failure to provide an accessible process for XXXX customers may implicate disability-access laws, including Title III of the Americans with XXXX XXXX, the New York State Human Rights Law , and the New York XXXX XXXX XXXX XXXX, where applicable. Courts have recognized that digital tools and app-based services connected to public accommodations may be subject to accessibility obligations, including in Robles v. Dominos Pizza , LLC , 913 F.3d 898 ( 9th Cir. 2019 ), and National Federation of the Blind v. Target Corp., 452 F. Supp. 2d 946 ( N.D. Cal. 2006 ). The Second Circuit has also recognized that Title III applies to the goods and services offered by covered public accommodations, not merely physical access to a doorway, in XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ). I request the following corrective action within XXXX business days : Written confirmation that I owe {$0.00} for the XXXX transaction connected to Case ID XXXX and Transaction ID XXXX. XXXX removal of any negative balance, repayment demand, limitation, offset, hold, or collection flag connected to this transaction. Confirmation that PayPal has not reported and will not report any negative information to any consumer reporting agency or collection agency related to this resolved transaction. A complete written explanation of why PayPal claims I owe money despite PayPals own written notice that the case was closed in my favor and that a {$320.00} refund was issued. Preservation of all records, including dispute notes, internal account notes, transaction ledgers, seller communications, refund records, automated decision logs, collection notes, and any credit-reporting or third-party collection communications. Reasonable accommodation consisting of written communications, supervisor-level review, no automated closure without human review, and additional time to respond if PayPal requests further documentation. If PayPal does not correct this matter promptly, I reserve all rights to file complaints with the Consumer Financial Protection Bureau, the New York State Department of Financial Services, the New York Attorney General, and any other applicable consumer-protection or disability-rights agency. The CFPB complaint process sends complaints to companies for review and response, and New York customers may direct unresolved money-transmitter complaints to XXXX. PayPal is listed as licensed for money transmission activity, and PayPals own licensing page identifies New York regulatory complaint options. Please confirm the e correction in writing. Sincerely, XXXX XXXX

Company response to consumer: Closed with non-monetary relief