Consumer complaint received 2026-03-07 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc

Complaint narrative:
# CFPB Complaint Letter PayPal Funds Withheld * * Company Name : * * XXXX XXXX XXXX XXXX XXXX XXXX. * * Legal Representative : * * XXXX XXXX * * PayPal Account Email : * * [ XXXX ] ( XXXX : XXXX ) * * Account Type : * * PayPal Business Account * * Current Balance : * * USD XXXX -- - # # Complaint Details I am submitting this complaint against PayPal regarding the improper withholding and potential confiscation of funds from my company 's PayPal business account. Our PayPal business account ( [ XXXX ] ( XXXX : XXXX ) ), registered under * * XXXX XXXX XXXX XXXX XXXX XXXX * *, received a * * permanent account limitation on XX/XX/XXXX * *. According to PayPal 's standard policy, the account balance would be * * held for 180 days * * before becoming eligible for withdrawal. After the required holding period ended, our funds became eligible for withdrawal on * * XX/XX/XXXX * *. However, despite meeting the required waiting period, PayPal has * * restricted our withdrawal function and prevented us from accessing our funds * *. Furthermore, on * * XX/XX/XXXX * *, PayPal sent us an email indicating that the account balance * * may be removed or cleared * *, which would result in the loss of the remaining funds in the account. This situation is extremely concerning because : * The 180-day holding period has already been completed. * PayPal has * * not provided any clear explanation or legal basis * * for continuing to restrict withdrawals. * PayPal customer support has repeatedly responded with the same message stating that they * * have no additional information to share and that the account can not withdraw funds at this time * *. The response we received from PayPal support was : * '' We are sorry, but regarding your account limitation, we currently do not have more information to share. Your account is temporarily unable to withdraw funds. Please wait for further notification from PayPal. " * This response does not provide any justification or resolution. If no action is taken, PayPal may * * remove or clear the funds from our account without explanation * *, resulting in a total loss of * * USD XXXX * * belonging to our company. We believe that withholding and potentially confiscating funds * * after the 180-day holding period has passed * * without explanation is unreasonable and unfair. -- - # # Timeline of Events * * * XX/XX/XXXX * * PayPal permanently limited our account. * * * XX/XX/XXXX * * PayPal sent an email indicating potential removal/clearing of the account balance. * * * XX/XX/XXXX * * The 180-day holding period ended and funds became eligible for withdrawal. * * * After XX/XX/XXXX * * Withdrawal function remained restricted with no explanation provided. -- - # # Supporting Evidence I can provide the following documentation : 1. Screenshot of the PayPal * * permanent account limitation notice * * 2. Screenshot showing * * funds eligible for withdrawal after the 180-day period * * 3. Screenshot of the * * PayPal email indicating potential balance removal * * 4. Communication records with PayPal customer support -- - # # Requested Resolution I respectfully request that PayPal : 1. Provide a * * clear explanation * * for continuing to restrict withdrawals after the 180-day holding period. 2. * * Remove the withdrawal restriction * * on our PayPal business account. 3. * * Allow immediate withdrawal of the remaining balance ( USD XXXX ) * *. 4. Confirm that PayPal * * will not remove or confiscate the funds * * from our account. Our company simply requests access to funds that legally belong to us after the required holding period has passed. We hope the Consumer Financial Protection Bureau can assist in facilitating a fair resolution with PayPal. Thank you for your attention to this matter.

Company response to consumer: Closed with explanation