Consumer complaint received 2025-10-13 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:
Dear Consumer Financial Protection Bureau, I am filing this complaint against PayPal , Inc. for engaging in unfair and monopolistic trade practices, resulting in the arbitrary limitation and deactivation of my personal PayPal account without any valid reason or transparent explanation.

Despite multiple attempts to resolve this matter directly with PayPal, I have received only generic responses citing security reasons with no specific details or substantiated cause. My account was permanently limited without prior notice, effectively blocking my ability to use the service or access my personal data. 

Summary of the Issue PayPal permanently limited my account without disclosing any valid reason or evidence of policy violation. 

The decision was communicated in a form letter stating it was done for security reasons in accordance with the User Agreement, with no additional details provided. 

I have never engaged in any prohibited activities, disputes, chargebacks, or fraudulent transactions. 

My account was used solely for legitimate, personal purposes. 

Following the limitation, PayPal has refused to delete my personal and financial data, despite my explicit request to do so under data privacy rights.

PayPals actions have caused significant inconvenience, reputational harm, and disruption of financial access without due process or explanation.

Concerns and Grounds for Complaint PayPals conduct demonstrates : Unfair and deceptive business practices Arbitrarily limiting user access and withholding funds without transparent justification. 

Violation of privacy and data rights Refusal to comply with account deletion or data removal requests after service termination. 

Anti-competitive and monopolistic behavior Abusing its dominant market position to unilaterally restrict consumer access and retain user funds for XXXX  days. 

Lack of due process and accountability Failing to provide a valid explanation or meaningful appeal process for users affected by automated security reviews. 

Requested Action I respectfully request that the CFPB : Conduct a full investigation into PayPals handling of account limitations and data retention practices.

Require PayPal to provide a transparent and detailed justification for any account limitation or closure.

Compel PayPal to honor user rights to delete personal and financial information upon request.

Direct PayPal to cease any unfair withholding of user funds beyond what is reasonably necessary for legitimate dispute resolution.

Attached is the official notice from PayPal informing me of the permanent account limitation and related policies.

I have also communicated directly with PayPals customer service and account review teams but received no specific resolution or opportunity for appeal.

Thank you for your attention to this matter. I request acknowledgment of this complaint and confirmation that it has been logged for investigation. I am available to provide additional documentation, communication logs, or screenshots as evidence. 

Sincerely, XXXX XXXX.

Company response to consumer: Closed with explanation