Consumer complaint received 2025-03-18 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: SC

Complaint narrative:
On XX/XX/XXXX, I paid {$470.00} via PayPal, funded by XXXX XXXX, to hire a freelancer through XXXX to develop a web application using XXXX. The freelancer never delivered any work. 

Due to XXXX XXXX, I was without internet for over XXXX weeks. While I was unable to respond, XXXX automatically released my funds after XXXX  days without my approval. When I regained access, I found that no work had been provided, no files were transferred, and the freelancer was unresponsive. 

Evidence from XXXX : I contacted XXXX, and they confirmed in writing that no work was delivered : " I totally understand the need to get a refund as you did not receive the work you paid for. '' XXXX XXXX, XXXX  Support Supervisor ( XX/XX/XXXX ) " I checked if this is something I can escalate with our mediation team, but I'm afraid this is no longer within that period since the funds were released months ago, XX/XX/XXXX, to be exact. '' XXXX Support This proves that XXXX acknowledges that no work was received and that the funds were released automatically without my approval. 

Disputing with PayPal ( XX/XX/XXXX ) I filed a dispute under PayPals Buyer Protection Policy as an " Item Not Received '' claim. 
PayPal denied my claim, citing " no evidence of misrepresentation, '' even though my claim was for non-receipt. 
I provided XXXX confirmation that no service was delivered, yet PayPal refused to reconsider the dispute. 
Disputing with XXXX XXXX ( XX/XX/XXXX ) I filed a chargeback with XXXX XXXX, citing non-delivery of services under the Fair Credit Billing Act ( FCBA ). 
XXXX XXXX wrongfully denied my claim, stating : " We are not able to reimburse you because the rules for these types of payments do not allow us to reverse authorization after the payment has been made. '' This is a clear violation of XXXX, which protects consumers from being charged for services never received. 
PayPal 's Response During a Phone Call : During my call with PayPal, they initially refused to escalate my case, stating they only accept formal letters from XXXX, not transcripts or email confirmations. I informed them that XXXX had confirmed in writing that no work was delivered, but PayPal stated : " The company [ XXXX ] is saying that the freelancer provided the service ; otherwise, you wouldnt have released the funds. That seems most logical. '' However, this directly contradicts XXXX 's own written statements that I never received any work. 

When I asked if I could provide XXXX email confirmation as evidence, PayPal stated : " We dont accept transcripts because they can be manipulated. '' When I asked how else I could prove non-receipt, they said : " You need to get a formal letter from XXXX stating that the work was not completed. '' I have recordings of this call, which show that PayPal ignored written evidence from XXXX and unfairly denied my dispute. 

XXXX XXXX Response During a Call : When I escalated my claim to XXXX XXXX, they wrongfully denied my chargeback, saying : " We can not reverse authorization after the payment has been made. '' This is false under the Fair Credit Billing Act, which allows disputes for services never received. 

The representative also advised me to take legal action against PayPal, which indicates that even XXXX XXXX recognized issues with how the dispute was handled but refused to assist. 

Violations of Consumer Protection Laws Both PayPal and XXXX XXXX failed to uphold consumer protection policies : PayPal Violations : Violated its Buyer Protection Policy, which covers " Item Not Received '' claims for XXXX days. 
Misclassified my case as " misrepresentation '' instead of non-receipt of service. 
Refused to consider XXXX written confirmation proving that no service was delivered. 

XXXX XXXX Violations : Failed to process my chargeback correctly under the Fair Credit Billing Act ( XXXX ). 
Refused to review evidence properly, dismissing XXXX confirmation that no service was received. 
Denied my claim based on incorrect reasoning ( authorization vs. non-receipt ). 
Supporting Evidence Available I have recordings of my phone calls with PayPal and XXXX XXXX, as well as : Written confirmation from XXXX that no service was delivered. 
PayPals incorrect dispute denial. 
XXXX XXXX wrongful chargeback denial. 
Screenshots of the XXXX project, freelancer communication, and dispute filings. 
I request that the CFPB hold PayPal and XXXX XXXX accountable for wrongfully denying my claim despite clear evidence that I never received the service I paid for.

Company response to consumer: Closed with explanation