Consumer complaint received 2026-03-09 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:
Complaint Submission : Consumer Financial Protection Bureau ( CFPB ) 1. Personal / Company Information ( ) Complainant : XXXX XXXX ( ) Company Name : ( XXXX XXXX XXXX XXXX XXXX XXXX ) Email Address : XXXX Relationship to the complaint : I am the business owner / authorized representative. 2. Company You Are Complaining About ( ) Company Name : PayPal Holdings , Inc. Product/Service : Money transfer, virtual currency, or money service 3. Complaint Details ( ) Brief Description of Issue : PayPal has frozen my business account funds unjustly beyond the standard 180-day hold period and refuses to restore my withdrawal rights, threatening to escheat ( / ) my funds without cause. Detailed Description ( Please include timeline, amounts, and your interactions with the company ) : Background : My company, XXXX XXXX XXXX XXXX XXXX XXXX, has been a PayPal user. On XX/XX/XXXX, PayPal permanently limited my business account, citing a violation of their policies without providing a specific reason. At that time, my account balance was {$2100.00} USD. Consistent with PayPals User Agreement, I was notified that my funds would be held for 180 days. Current Situation ( The Issue ) : The 180-day hold period expired on XX/XX/XXXX. According to PayPal 's own policy, funds should become eligible for withdrawal after this period. However, upon attempting to withdraw my funds, PayPal restricted my withdrawal functionality. On XX/XX/XXXX, I received an email from PayPal threatening to " escheat '' ( clear/XXXX out ) my account balance, claiming the funds are subject to abandonment laws. Despite multiple attempts to contact PayPal support, they have failed to provide a valid reason for blocking my withdrawal rights and have not resolved the issue. Key Dates & Facts : Account Permanently Limited : XX/XX/XXXX Funds Eligible for Withdrawal ( per 180-day policy ) : XX/XX/XXXXXXXX Account Balance : {$2100.00} USD Threatening " Escheatment '' Email Received : XX/XX/XXXX My Attempts to Resolve : I have attempted to communicate with PayPal to request restoration of my withdrawal ( access ) and clarification on why I can not access my own funds after the legally required hold period. Their customer service has been unresponsive and has not provided any specific explanation for the continued restriction. Desired Resolution ( ) : I am requesting that PayPal immediately lift the withdrawal restriction on my account and allow me to transfer my full balance of {$2100.00} USD to my verified bank account. I believe holding funds beyond the 180-day period without explanation is an unfair and deceptive practice. 4. Attachments/ Documentation ( ) Please prepare the following screenshots/documents to upload in the CFPB portal ( File size limit applies ) : Screenshot 1 : The " Permanent Limit '' notification email from PayPal dated XX/XX/XXXX. ( ) Screenshot 2 : Screenshot of your PayPal account dashboard showing the current balance ( {$2100.00} ) and the " Withdraw '' option being greyed out or disabled, taken after XX/XX/XXXX. ( ) Screenshot 3 : The threatening email from PayPal dated XX/XX/XXXX, regarding clearing/escheating your funds. ( ) Document 4 : Any correspondence ( emails/messages ) with PayPal support where they failed to provide a reason for the continued restriction.

Company response to consumer: Closed with explanation