Consumer complaint received 2025-11-27 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: PR

Complaint narrative:
CFPB Complaint Unauthorized Transactions/ Regulation E Violations PayPal Cases : XXXX & XXXX Complainant : XXXX XXXX I am filing this complaint because PayPal has failed to properly investigate, address, or resolve XXXX unauthorized transactions on my account, in direct violation of Regulation E ( 12 C.F.R. 1005 ). 

I initiated XXXX disputes with PayPal for transactions I did not authorize, involving a merchant on XXXX with whom I have absolutely no relationship. I explicitly informed PayPal that : I did not authorize these transactions, I do not use XXXX for purchases, I do not know the merchant, and I have no payment agreements with any related entity. 

Despite this, PayPal repeatedly insists that I authorized these transactions and claims I have a payment agreement, yet they refuse to provide any evidence supporting this assertion. I have requested documentation multiple times, including formal proof or a PDF copy of any authorization PayPal claims to have. They have provided nothing. Nothing but empty words, and as an attorney, I am not backing down. They picked the wrong person I will take this all the way. 

Instead, PayPal has told me that I must contact the merchant to cancel the payments. This is impossible because : XXXX. I do not know the merchant, XXXX. I have no account with them, and XXXX. I did not authorize any transaction to begin with. 

PayPal has also refused to classify the transactions as unauthorized, despite the facts provided. This contradicts Regulation E requirements, which mandate that financial institutions investigate unauthorized electronic fund transfers and provide evidence of authorization when claiming a transaction is valid. 

PayPal has repeatedly claimed that my IP address matches the location of the disputed transactions. So what? I did not authorize or perform any of these transactions. This claim is irrelevant and can not be used to justify labeling me as responsible for fraudulent activity. I am being falsely accused of actions I never took. There are multiple indicators of fraud involved, including : unauthorized use of an account, receipt of fraudulent emails linked to these transactions, and complete lack of any relationship with the merchant. PayPals explanations regarding IP addresses or alleged payment agreements carry no weight as evidence of authorization. They are attempting to shift blame to me without providing any credible proof, ignoring their obligation under Regulation E to investigate and resolve unauthorized transactions properly. 

Since these unauthorized charges occurred, I have also begun receiving fraudulent emails, indicating potential compromise or misuse of my information a concern PayPal has ignored and failed to address. 

PayPals actions appear to violate several Regulation E obligations, including but not limited to : Failure to conduct a reasonable and timely investigation ; Failure to provide requested documentation of alleged authorization ; Failure to provisionally credit or reimburse funds during the investigation ; Failure to protect the customer from unauthorized transactions. 

As a result, I have suffered financial harm due to debits that do not belong to me, and PayPal has shown no intent to resolve the issue adequately or lawfully. 

I am requesting the CFPBs assistance to compel PayPal to : XXXX. Provide evidence of any alleged authorization ; XXXX. Properly investigate these disputes pursuant to Regulation E ; XXXX. Refund the unauthorized transactions ; XXXX. Address the fraudulent communications received since the incident. 

I am submitting this complaint because PayPal has repeatedly refused to comply with basic consumer protection obligations and has left me without resolution. 

Complainant : XXXX XXXX

Company response to consumer: Closed with explanation