Consumer complaint received 2025-04-24 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account — 
Company: Paypal Holdings, Inc
State: TX

Complaint narrative:
Reference ID ( XXXX ) Dear PayPal Representatives , My name is XXXX XXXX XXXX and the email associated with the account in question is XXXX. The phone number linked to the account is ( XXXX ) XXXX. I am writing to formally request the re-opening of my PayPal Business Account, which has been inoperative since XX/XX/XXXX due to actions taken by a PayPal employee. 

I have been a loyal PayPal customer since XXXX as an individual, and I chose to use your services for my business, XXXX XXXX XXXX, given how efficient and reliable it was for personal transactions. PayPal became integral to my business operations, enabling secure and efficient management of payments. At the time of the account closure, I had recently opened my PayPal Business Account, and as a sole proprietor, my personal and business accounts were often linked. This is a common practice for individuals operating small businesses. Any chargebacks or disputes might have been mistakenly processed as personal matters, which was not intentional but rather a reflection of my business structure at that time. 

In XX/XX/XXXX, my account was accessed by a PayPal employee, XXXX XXXX XXXX, who placed a flag on my account without providing clear reasons. This action led to the permanent closure of my account, causing severe disruption to my business. As a result, XXXX XXXX XXXX has been unable to operate effectively, leading to significant financial losses over the past six years. The inability to access my PayPal account has completely halted my business operations and caused tremendous harm to my financial stability. At the time of the accounts closure, my PayPal business account was my sole method of receiving income. Due to both visa restrictions in the XXXX and the nature of my remote, client-based work, I relied entirely on PayPal to invoice clients, receive payments, and maintain financial stability. The closure of this account, without explanation or a chance to resolve the issue, not only rendered my business inoperative, but also cut off my only source of income for a prolonged periodcreating a cascade of emotional, professional, and financial harm. 

I have attached a screenshot from XX/XX/XXXX, which shows the time and date from my computer, indicating when XXXX XXXX XXXX accessed my personal XXXX profile. At that time, her role was listed as a " PayPal Billing Analyst. '' The timing of this activity coincided with the period when my PayPal account was flagged and subsequently shut down. This raises concerns about a potential conflict of interest and the motivations behind her actions. Additionally, I would like to highlight a tweet from XX/XX/XXXX, in which she expressed dissatisfaction about XXXX transparency features : " I hate how you can't stalk in peace on XXXX? Why do you have to tell them I viewed their profile? '' This may indicate a pattern of behavior regarding the non-consensual monitoring of others ' professional profiles. 

On XX/XX/XXXX, I discovered that XXXX XXXX had accessed my XXXX profile. The timing of this action, immediately before my business account was flagged and permanently shut down, raises serious concerns. This was done without prior notice or giving me a chance to respond, and she held administrative access to sensitive account data. This conduct raises ethical and legal concerns, particularly under privacy laws such as the California Consumer Privacy Act ( CCPA ) and other data protection regulations. Company representatives who access private data or engage with clients outside of professional boundaries without a legitimate business reason may be violating privacy standards. 

While I can not conclusively determine the intent behind her actions, the documented history of her behavior on social media and the timing of her access to my XXXX pagewhile serving in a professional role with administrative access to my PayPal accountare troubling. These circumstances warrant internal review to ensure compliance with privacy laws and ethical standards. Additionally, XXXX XXXX XXXX demonstrated a concerning pattern of behavior regarding XXXX activity. On XX/XX/XXXX, XXXXnearly one year after the permanent closure of my PayPal accountshe publicly tweeted : Im on XXXX all day everyday lol. This follows an earlier tweet where she stated, I hate how you can't stalk in peace on XXXX? Why do you have to tell them I viewed their profile? The timing of these social media comments, along with the documented evidence that she accessed my XXXX profile on XX/XX/XXXX, during the same timeframe my PayPal account was flagged and closed, raises legitimate concerns about the purpose and appropriateness of her actions. 

On XX/XX/XXXX, I discovered that XXXX XXXX XXXX had accessed my personal XXXX profile, which raises serious concerns about her motivations and subsequent actions against my PayPal account. This was a clear violation of my privacy rights and a breach of the trust I placed in PayPal as a service provider. Unauthorized access to my account, followed by its flagging and eventual closure, was done without proper justification or communication. This compromised my personal privacy and exposed sensitive information about my clients, damaging the trust they had in my business. Additionally, XXXX XXXX and I were once classmates, and while I am not accusing her of misconduct, this personal connection raises concerns about bias in the handling of my account. Furthermore, she has since changed her social media handle on XXXX ( formerly XXXX ) and locked her tweets, which further complicates the timeline and context of the situation. 

Despite numerous attempts to resolve this issue through PayPals customer service, I have been unable to obtain a satisfactory explanation or regain access to my account. Representatives have provided conflicting information, and some even acknowledged that the account should not have been closed for the reasons stated.

In reviewing PayPal 's User Agreement, I firmly believe that my actions throughout the duration of my account use have been in full compliance with the terms set forth. As a sole proprietor, Ive always acted in good faith, aiming to maintain transparent and legitimate business transactions. Any issues that arosesuch as chargebacks or payment disputeswere due to genuine discrepancies or unrecognized charges, not fraudulent or malicious activity. However, I do believe that my account may have been unfairly targeted by certain actions, particularly due to the involvement of a PayPal employee, XXXX XXXX XXXX, who accessed my personal XXXX profile and later flagged my account for closure without clear explanation. This behavior raises concerns of bias and a potential conflict of interest. I have consistently prioritized adhering to PayPal 's policies, and I am fully committed to maintaining a positive and compliant account history. Therefore, I respectfully request that you reconsider the permanent closure of my account and allow for a thorough review of the situation, as I believe any violation was either unintentional, based on misunderstandings, or the result of an improper personal influence rather than willful non-compliance. 

I would also like to inform you that I have since settled the amount due on my account of {$8.00}. With this payment now completed, there should be no outstanding financial issues preventing the re-opening of my account. 

Given the significant impact the closure of my PayPal account has had on my business and personal life, I respectfully request that PayPal reconsider its decision and re-open my account. With the outstanding balance resolved, I am eager to restore my business operations and continue utilizing PayPals services. I acknowledge that there were disputes filed on my account in the past, which may have contributed to the systems decision to restrict my access. These disputes were filed in good faith due to unrecognized charges or discrepancies in the goods I received. PayPal representatives I spoke to over the phone agreed with me on recorded calls that the closure was unfair and unjustified. Moving forward, I am committed to complying fully with PayPals terms and conditions to avoid any future issues. 

The financial summary report from my PayPal Business Account for the period XX/XX/XXXX, to XX/XX/XXXX, demonstrates that XXXX XXXX XXXX was an active and legitimate business relying on PayPals services for a substantial volume of transactions. The report shows total sales activity of {$15000.00}, with payments received amounting to {$15000.00}, demonstrating that my business was fully operational and generating revenue during this period. The chargeback activity, totaling {$100.00}, is typical of online business operations and should not have been the sole basis for account closure. The report also reveals a significant decline in my available balance, from {$7.00} to {$1.00}, illustrating the financial disruption caused by the account closure. 

As a direct result of PayPals wrongful account closure and the inability to securely process payments through your platform, I was left without access to vital financial tools. This exposed me to significant financial vulnerability, resulting in identity theft and fraudulent cashing of my government-issued stimulus checks. Attached to this submission is a copy of my official FTC Identity Theft Report ( Report Number : XXXX ), dated XX/XX/XXXX, which confirms that I was a victim of check fraud and identity theft in late XXXX. This occurred after the wrongful closure of my PayPal account, further exposing me to financial harm due to the loss of secure payment infrastructure. I have also included an IRS Affidavit that further shows damage after my account was closed. These documents show that, in addition to the direct loss of income caused by PayPals actions, I have also suffered financial and emotional distress that has further harmed my reputation and business. This explicit link between PayPals action and the consequences of identity theft and fraud will help to strengthen your case, showing how PayPal 's failure to maintain your business account led directly to your further financial and emotional damage. In addition to the wrongful closure of my PayPal account, I was also a victim of the XXXX data breach, which I was notified of shortly after the closure of my PayPal account. This breach, combined with the complications caused by the PayPal account closure, further worsened my financial situation. The data breach added another layer of uncertainty, as it potentially compromised my financial data and credit history, contributing to further difficulties in securing credit and stabilizing my finances. 

I am seeking compensation for the losses incurred, as well as the restoration of my account to allow my business to resume operations. The closure of my account has not only affected my ability to process payments but has also damaged my reputation and client relationships. I am requesting a settlement of {$500000.00} to compensate for the following : business losses due to the inability to access my PayPal account, including lost clients and failed payments ; the cost of restoring my reputation with clients and partners ; and emotional distress caused by the financial instability stemming from the closure of my account. Since the wrongful closure of my PayPal Business Account in XXXX, I have been denied credit from several major credit card issuers. My PayPal account was integral to my business, providing payment processing and acting as a source of financial stability. With the sudden closure of my account, I lost this critical income source, which caused a drastic disruption in my financial stability. As a result, I was no longer able to meet credit application criteria, leading to multiple denials of credit. This disruption and the financial instability caused by PayPals actions severely impacted my credit score and financial reputation, making it more difficult for me to rebuild both my personal and professional financial standing.

To resolve this matter amicably, I propose the following : the re-opening of my PayPal Business Account on a provisional basis, with any necessary conditions for compliance ; an internal investigation into the actions of the employee involved to prevent similar issues in the future ; and periodic reviews of my account to ensure responsible usage. 

I trust that PayPal values its longstanding customers and will take these issues seriously. I look forward to your response and to a positive resolution of this matter.

Company response to consumer: Closed with explanation