Consumer complaint received 2026-03-08 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: Paypal Holdings, Inc
State: CA

Complaint narrative:
On XX/XX/year>, I disputed XXXX transactions with PayPal for sweepstakes related transactions that occured after XXXX Assembly Bill 831 took effect on XX/XX/year>. XXXX Assembly Bill 831 prohibits this type of sweepstakes gambling activity for which these payments were made. I first contacted the merchant, XXXX XXXX XXXX requesting a refund because they can not legally operate in my jurisdiction. The merchant was going to issue a refund but required that I sign a refund agreement letter that stated I was acknowledging that they were operating in full compliance of the law. I informed them that I can not sign a document that contains that language because it is not true, they are not operating in compliance of the law and they are in fact prohibited by law from operating anywhere within the State of XXXX. The merchant then rescinded the offer to refund the transactions so I filed disputes with PayPal informing them of the above information. PayPal told me to file with the FBI Internet Crimes Division ( IC3 ) which I did, and I provided PayPal with a copy of XXXX Assembly Bill 831 proving that the transactions were in fact illegal at the time they occurred. Because the underlying activity was unlawful in California at the time of the transactions, the agreements associated with these purchases are void as against public policy. PayPal closed XXXX of my disputes in favor of the seller and XXXX in my favor. I requested the disputes closed in favor of the seller be appealed on the grounds the transactions are illegal at the time they occurred. PayPal denied the appeal and PayPal representative XXXX, employee number XXXX stated during a phone conversation on XX/XX/year> that XXXX were closed in my favor and that {$1100.00} was returned to my account. On XX/XX/year>, XXXX reversed the disputes closed in my favor and has taken the funds back from my account. That action goes against PayPal 's own policy of the finality for dispute decisions. As such, I have also filed with the Department of Financial Protection and Innovation against PayPal for processing illegal transactions and ruling the transactions to be legal and valid, complaint number XXXX. I was then contact by phone by a PayPal representative on XX/XX/year> claiming that after he researched the merchant he determined them to not be a sweepstakes casino. I informed him that he is wrong and the XXXX XXXX XXXX XXXX literally defines the platform the merchant operates and I gave him a website for the merchant, which is clearly a sweepstakes casino using a dual coin system. He responded with a letter stating that he could not confirm the merchant was associated with the website I gave him during the phone conversation and also cited that because the disputes were initially filed as not having received the product for the merchant he was going to deny the appeal. I informed that I clearly stated to PayPal when filing my disputes over the phone the unlawful nature of the transactions and that the purchased digital asset was still in my account unused. PayPal directed me to file the complaint with IC3 and provide them a copy which I did. It was PayPal that submitted the disputes as having not received the product when I specifically told them that it is the unlawful nature of the transactions that renders them void by XXXX Business and Professions code. I have also requested all phone conversations recorded and all documentation and information PayPal used to determine the outcome of my disputes because they claim that the merchant provided sufficient evidence that the product was delivered but then claim to not be able to determine if they are a sweepstakes casino and seem to be unaware of the types of transactions they claim they verified. I have not been provided any of the documentation I have requested and since provided PayPal even more documents showing the connection to the website given and the my account with the merchant. Both the merchant and PayPal need to be fined for the unethical and unlawful actions perpetrated against me and most likely other consumers.

Company response to consumer: Closed with explanation