Consumer complaint received 2025-05-02 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: WV

Complaint narrative:
On the night of XX/XX/XXXX into the XXXX, approximately {$2300.00} was transferred from my XXXX bank account to fund a XXXX gambling account. These transfers were processed through linked PayPal and XXXX, appearing on my XXXX statement as " Paypal visa direct '' or " Venmo visa direct '' charges. 

I, the account holder, did not authorize any of these transactions. They were initiated by a younger family member who gained temporary access to my phone without my knowledge or consent and was able to do all of this with just a few button presses. 

I promptly reported these unauthorized transactions to PayPal. Initially, PayPal suggested the charges were authorized under an automatic payment agreement purportedly established from a {$10.00} deposit made back in XX/XX/year>. I contest the validity, clear disclosure, and intended scope of any such agreement stemming from this past transaction. 

Subsequently, PayPal formally denied my dispute, stating they were " unable to confirm that a third party out of your household accessed your account '' and that access by a " younger family member '' can not be considered unauthorized access under their internal policies regarding " family/friendly fraud. '' They stated they can not pursue this type of fraud and that resolution must be sought with the individual. 

PayPal 's refusal to address these unauthorized charges based on their internal " family fraud '' policy ignores the core issue : I, the account holder, did not authorize these specific electronic fund transfers and have received no benefit or value from them. Furthermore, their reliance on a potentially improperly established automatic payment agreement raises concerns. 

I have also filed a dispute with XXXX, the bank holding the account from which the funds were debited via my XXXX debit card. This dispute is currently under investigation. 

Potential Violations of Regulation E ( 12 CFR Part 1005 ) : I believe PayPal 's actions and the nature of the transactions potentially violate several provisions of Regulation E : 1005.6 - Liability of consumer for unauthorized transfers : The core issue is that these were unauthorized electronic fund transfers. They were initiated by someone other than me, without actual authority, and I received no benefit. PayPal 's refusal to recognize this based on the perpetrator being a family member seems contrary to the definition and consumer protections outlined in this section.

1005.10 ( b ) - Written authorization for pre authorized transfers from consumer 's account : The automatic payment agreement PayPal cited was allegedly established from a single transaction months prior. The validity, clarity of disclosure, and consumer 's provision of a copy of this authorization, as required by this section, are questionable. It was certainly not authorized for over {$1100.00} ( transactions through Paypal only ) in subsequent gambling deposits.

1005.10 ( d ) - Notice of transfers varying in amount : The approximately {$2300.00} in deposits within XXXX hours clearly varied significantly in amount from any previous transfer under the alleged automatic payment authorization. Neither the designated payee ( XXXX XXXX ) nor the financial institution ( PayPal, XXXX XXXX provided the required written notice of the amount and date of these varying transfers at least XXXX days before they occurred, as mandated by this section.

Company response to consumer: Closed with explanation