Consumer complaint received 2025-04-25 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: Paypal Holdings, Inc
State: TX

Complaint narrative:
To whom it may concern, My name is XXXX XXXX and Im a long-time PayPal user who has never violated the Acceptable Use Policy. I filed a few disputes with XXXX due to some issues with delivery and was told that after 10 days of no response I would be receiving my funds back due to once again no response from the seller. I filed a CFPB complaint for good measure just to make sure this was well documented and when the calls are going to be listened to back it will support everything I am saying. Despite this, I received the horrible shock of a You can no longer do business with PayPal email today. At the advice of counsel, Im sending you a polite message with details and information so that this policy mistake can be corrected and that my account can be restored to full functionality.

The email I received claimed Because you have continually filed cases that do not align with the intent of the PayPal Purchase Protection Program and are contrary to the terms outlined in our User Agreement, weve determined you can no longer use PayPals services.Weve limited
your account so you can no longer send or receive funds. Your ability to file PayPal Purchase Protection cases has also been removed. Any existing PayPal Purchase Protection cases you've filed will be denied.

For information on account limitations, please refer to the PayPal User Agreement. To find out what to do next, log in to your PayPal account and visit the Resolution Center.

After throughly researching there is no determination of what my claims could fall under going against the intent of the Purchase Protection Program, as my items were not as described and I reported such, along with evidence. Here is PayPals own policy and my research showing I have not violated the Purchase Protection.

PayPals Purchase Protection program may apply when you encounter these specific problems with a transaction : You didnt receive your item from a seller ( referred to as an Item Not Received claim ), or You received an item, but the item isnt what you ordered ( referred to as a Significantly Not as Described claim ). -This is what I claimed.

Item Not Received Claims Your claimwill notqualify for a refund under PayPals Purchase Protection program for an Item Not Received claim, if : You collect the item in person, or arrange for it to be collected on your behalf, including if you use PayPal in a sellers physical store, except for in-personPayPal QR codegoods and services transactions, or The seller has providedproof of shipmentorproof of delivery. 

Neither of these are the cases as on XX/XX/XXXX, the case was filed under Item not as described. 


If the seller presents evidence that they delivered the goods to you, PayPal may find in favor of the seller for an Item Not Received claim even if you claim you did not receive the goods.

Significantly Not as Described Claims An item may be considered Significantly Not as Described if : The item is materially different from the sellers description of it. 
You received a completely different item. 
The condition of the item was misrepresented. For example, the item was described as new but the item was used. 
The item was advertised as authentic but is not authentic ( i.e. counterfeit ). 
The item is missing major parts or features and those facts were not disclosed in the description of the item when you bought it. - This here is exact description of my claim. I received an empty box upon my purchases. Which means the order I made was missing major parts and those facts were not disclosed in the description of the item when I bought it. 
You purchased a certain number of items but didnt receive them all. - This would also be a description of my claim as I bought a number of items but due to the box being empty, I of course never received the amount of items I ordered. 
The item was damaged during shipment. - This could be a possibility in my case due to once again the box being empty, potentially it was damaged on its way to delivery to me, and as to why I did not receive the item I ordered as described.

The item is unusable in its received state and was not disclosed as such. - Also another possibility in my case.

An item may not be considered Significantly Not as Described if : The defect in the item was correctly described by the seller in its description of the item. -This is not the case as the item was not described as such.

The item was properly described but you didnt want it after you received it. -This is also not the case for my dispute The item was properly described but did not meet your expectations. -Not the case for my dispute The item has minor scratches and was described as used. - Not the case for my dispute.

Ineligible Items and Transactions The following items or transactionsare noteligible for PayPals Purchase Protection program : Real estate, including residential property.

Vehicles, including, but not limited to, motor vehicles, motorcycles, recreational vehicles, aircraft, and boats, except for personally portable light vehicles used for recreational purposes like bicycles and wheeled hoverboards.

Businesses ( when you buy or invest in a business ).

Industrial machinery used in manufacturing.

Payments that are equivalent to cash, including stored value items such as gift cards and pre-paid cards.

Payments made in respect of gold ( whether in physical form or exchange-traded form ).

Financial products or investments of any kind.

Non-fungible tokens ( NFTs ).

Gambling, gaming, and/or any other activities with an entry fee and a prize.

Donations, including payments on crowdfunding platforms as well as payments made on crowdlending platforms.

Payments to a state-run body ( except for state-owned enterprises ), government agencies, or third parties acting on behalf of state-run bodies or government agencies.

Payments to any bill payment service, including PayPal Bill Pay for Business Accountstransactions.

Payments that you initiate via a third-party platform using your PayPal Balance account and assigned account and routing number ( PayPal'sDirect Debitfunctionality ).

Significantly Not as Describedclaims for wholly or partly custom-made items.

Item Not Receivedclaims for physical, tangible items you collect in person or arrange to be collected on your behalf. This includes items bought in a sellers point of sale location, except if you paid for the transaction in person using PayPals goods and services QR code.

Anything prohibited by PayPalsAcceptable Use Policy.

Payments made using PayPal Payouts ( formerly Mass Pay ).

Personal Payments including payments sent using PayPals friends and family functionality.

Payments that you have not sent using your PayPal account.

Items intended for resale, including single item transactions or transactions that include multiple items.

None of these descriptions of purchases describe what I purchased from XXXX. 

Transaction Eligibility for PayPals Purchase Protection Program To be eligible for PayPal Purchase Protection you must meet all of the following requirements : Have a PayPal account in good standing. - As I did before my account was wrongfully limited.

Pay for the eligible item from your PayPal account.

Attempt to contact the seller to resolve your issue directly before filing a claim through the Resolution Center. - As I did and there is documented evidence of such.

Respond to PayPals request for documentation and other information within the time requested. - As I did and there is documented evidence of such.

Open a dispute in theResolution Centerwithin theapplicable timeframeand follow our online dispute resolution process. - As I did and there is documented evidence of such.

Not have received a recovery or agreed to an alternative resolution related to your purchase from another source. - As I have not received any other form of resolution from the seller XXXX. 

Here is also the AUP policy that I will also be going one by one detailing how none of these violations would apply to me as it can be clearly seen I have not committed any of these offenses.

Prohibited Activities You may not use the PayPal service for activities that : violate any law, statute, ordinance or regulation. - All I have purchased is XXXX and using my XXXX XXXX XXXX for store purchases or sending funds to family. 
relate to transactions involving ( a ) narcotics, steroids, certain controlled substances or other products that present a risk to consumer safety, ( b ) drug paraphernalia, ( c ) cigarettes, ( d ) items that encourage, promote, facilitate or instruct others to engage in illegal activity, ( e ) stolen goods including digital and virtual goods, ( f ) the promotion of hate, violence, racial or other forms of intolerance that is discriminatory or the financial exploitation of a crime, ( g ) items that are considered obscene, ( h ) items that infringe or violate any copyright, trademark, right of publicity or privacy or any other proprietary right under the laws of any jurisdiction, ( i ) certain sexually oriented materials or services, ( j ) ammunition, firearms, or certain firearm parts or accessories, or ( k ) certain weapons or knives regulated under applicable law. - Dear God, No. Once again only XXXX and XXXX XXXX used. And I will gladly provide my cashapp transactions if needed to prove that as well. 
relate to transactions that ( a ) show the personal information of third parties in violation of applicable law, ( b ) support pyramid or ponzi schemes, matrix programs, other " get rich quick '' schemes or certain multi-level marketing programs, ( c ) are associated with purchases of annuities or lottery contracts, lay-away systems, off-shore banking or transactions to finance or refinance debts funded by a credit card, ( d ) are for the sale of certain items before the seller has control or possession of the item, ( e ) are by payment processors to collect payments on behalf of merchants, ( f ) are associated with the sale of traveler 's checks or money orders, ( g ) involve currency exchanges or check cashing businesses, ( h ) involve certain credit repair, debt settlement services, credit transactions or insurance activities, or ( i ) involve offering or receiving payments for the purpose of bribery or corruption. - Once again only XXXX and XXXX XXXX used. And I will gladly provide my cashapp transactions if needed to prove that as well. 
involve the sales of products or services identified by government agencies to have a high likelihood of being fraudulent. - Once again only XXXX and XXXX XXXX used. And I will gladly provide my cashapp transactions if needed to prove that as well. 
relate to transactions involving any activity that requires pre-approval without having obtained said approval. - Once again only XXXX and XXXX XXXX used. And I will gladly provide my cashapp transactions if needed to prove that as well. 

I primarily use my PayPal for XXXX XXXX and XXXX transactions. In addition, my PayPal is authenticated and connected to Cash App where I receive occasional income from Cash App Deposits. Everything I do on PayPal is completely legitimate. 

Here are several examples of recent transactions : XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Why This Closure Was Wrongful and Retaliatory : XXXX. All My Disputes Were Legitimate and Within Policy : I filed claims under Significantly Not As Described and Item Not Received, both of which fall squarely under the eligible scenarios laid out in PayPals own Buyer Protection Program ( XXXX XXXX XXXX XXXX  ). My dispute centered around an empty package being deliveredan issue supported by a police report filed with the XXXX XXXX XXXX. This scenario is explicitly outlined in the Buyer Protection policy as a qualifying reason for a refund.

2. I Did Not Abuse Buyer Protection : According to PayPals policies, a buyer may file a dispute if : The item is materially different from what was ordered.

The order arrives missing items.

The order never arrives at all.

The item is damaged, unusable, or counterfeit.

These precisely describe my situation. None of my claims were speculative or excessive. I provided timely documentation and responded to every request. At no point did I file a dispute that fell outside the boundaries of the Buyer Protection terms. I
was told over the phone by PayPals own representatives that if the seller did not respond within XXXX  days, my case would be decided in my favor. The seller ( XXXX ) did not respond. I was wrongfully punished for requesting what I was promised.

3. Account Termination Only Occurred After Filing a CFPB Complaint : My account was not under review, limited, or flagged in any way prior to the filing of my original CFPB complaint. Within XXXX hours of submission, I received notice that my account was terminated. This strongly suggests retaliatory intent. It sends the disturbing message that exercising ones right to file a complaint with the CFPB could result in being banned from a financial platform without warning. 
XXXX. I Have Not Violated the Acceptable Use Policy ( AUP ) : I reviewed the AUP carefully ( XXXX XXXX XXXX? XXXX ) and found no clausenonethat would implicate my PayPal activity. I do not engage in any restricted transactions or activities. I use PayPal almost exclusively for XXXX purchases and occasional transfers to my verified Cash App account. 

These are not abuse, fraud, or illicit use. They are personal, traceable, and legitimate. 



Conclusion : I believe I am being wrongfully accused of violating the AUP and PayPals Buyer Protection system, or whatever may be the reason. Not only have I followed the rules, I have gone above and beyond to cooperate : providing police reports, item descriptions, and full documentation. In return, I have been met with silence, mistreatment, and now account termination following a legally protected CFPB complaint.

I respectfully request : Immediate reinstatement of my PayPal account.

Restoration of access to pending disputes.

A formal investigation into potential retaliatory action by PayPal in response to my initial CFPB filing. 

If this complaint is not resolved, I am prepared to pursue further escalation through all legal and consumer protection avenues.

Company response to consumer: Closed with explanation