Consumer complaint received 2025-12-04 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: FL

Complaint narrative:
I am filing this complaint to report PayPal for engaging in unfair, deceptive, and abusive acts and practices in violation of the Consumer Financial Protection Act. PayPal is failing to protect consumers, mishandling disputes, and enabling fraudulent foreign sellersprimarily companies based in XXXX exploit XXXX consumers through its platform. 

PayPal markets its XXXX XXXX program as a safeguard against fraud, yet their dispute process does not provide the protections advertised. PayPal routinely dismisses clear evidence, prematurely closes claims, and denies consumers the ability to reopen cases that were closed in error. This creates financial harm and misleads consumers who rely on PayPal as a trusted payment service. 

A large number of XXXX sellers using PayPal engage in a consistent pattern of deception : They ship incorrect, defective, or misrepresented items. 
They provide no legitimate customer service or return address. 
They refuse refunds. 
They respond with an automatic {$10.00} partial refund regardless of the issue or purchase amount. 
They ignore consumer communication. 

Despite overwhelming evidence of fraud, PayPal repeatedly accepts the {$10.00} offer as a resolution, siding with the seller even when the consumer presents proof that the merchant acted in bad faith. PayPals actions create an environment where deceptive sellers can continue exploiting U.S. consumers. 

PayPals customer service practices are also harmful. Representatives are unprofessional, dismissive, and unwilling to review new evidence or escalate issues. They contradict written policies, refuse to correct improper case closures, and deny consumers a fair opportunity to resolve disputes. These practices create an abusive and imbalanced dispute system that protects sellers while financially harming consumers.

PayPals internal system blocks consumers from reopening disputes, even when a claim was mishandled. This lack of transparency and inability to appeal decisions is unfair, deceptive, and financially damaging. PayPal benefits from these transactions and appears to prioritize seller revenue over consumer protection.

These ongoing failures indicate systemic issues in PayPals dispute resolution framework, misrepresentation of XXXX XXXX, and inadequate oversight of foreign merchants. PayPals conduct is causing financial injury and violating consumers reasonable expectations based on the protections they advertise. 

I request that the CFPB investigate : XXXX. PayPals dispute resolution practices and premature closing of claims. 
XXXX. Their acceptance of inadequate {$10.00} partial refunds as legitimate resolutions. 
XXXX. Their refusal to reopen cases, even when errors occur. 
XXXX. Their oversight and monitoring of foreign sellers engaged in deceptive conduct. 
XXXX. Their compliance with UDAAP standards and truthful representation of XXXX XXXX. 

PayPal is operating in a manner that is harmful, misleading, and contrary to the consumer protections required by federal law. Action is needed to ensure PayPal is held accountable and consumers receive fair and lawful treatment.

Company response to consumer: Closed with explanation